Data centers are popping up across Ohio, but experts say it's a raw deal for Ohioans | News @ Nine
A survey of 14 Ohio economists found that current state policies make data centers a "raw deal" for Ohioans, primarily due to tax breaks, high electricity and water usage, and low job creation. There's an ongoing legislative push to repeal data center tax breaks, which Governor DeWine previously vetoed, and a proposed ballot initiative for a statewide ban on new data centers.
A recent survey conducted by Scioto Analysis, involving 14 economics professors from Ohio universities, revealed a strong consensus that under current state policies, the drawbacks of data centers outweigh their benefits for Ohioans. NBC4 Digital Reporter Katie Millard discussed these findings with News @ Nine Anchor Kyle Beachy, noting that while Ohio already hosts 200 data centers with more on the way, the experts believe policy changes, particularly regarding tax credits, are necessary for Ohio residents to genuinely benefit.
The primary concern highlighted is a sales tax break policy in place since 2011, which exempts data centers from sales tax on construction and materials if they meet certain investment and payroll criteria. Although state legislators included a line to repeal this tax break in the last biennial budget, Governor DeWine vetoed it to maintain Ohio's competitiveness. There is an ongoing push to re-introduce such legislation or override the veto. Additionally, experts and constituents are concerned that data centers are not paying their fair share for the large amounts of electricity and water they consume, potentially shifting costs to consumers and raising environmental concerns.
Despite the significant infrastructure these facilities require, data centers create very few permanent jobs, typically only a couple dozen per facility, which also contributes to public skepticism. While some experts acknowledge the necessity of data centers for digital infrastructure and maintaining international competitiveness, they argue that current policies fail to support Ohioans. There is also a proposed ballot initiative for November that would allow Ohioans to vote on a ban on new data centers, though some experts believe an outright ban might be too extreme, advocating instead for policy reforms. Sunbury was mentioned as an example of a community that reconsidered bringing in a data center due to these factors.