Ohio Gov. DeWine Signs Data Center Ratepayer Protection Pledge
Ohio Gov. Mike DeWine signed President Donald Trump's Ratepayer Protection Pledge, aiming to make AI and data center companies responsible for their utility and infrastructure costs, not consumers. This action follows a previous pause on new data center tax exemptions in Ohio and is supported by proposed state legislation, the Ratepayer Protection Act.
Ohio Governor Mike DeWine has joined several other Republican governors in signing President Donald Trump's Ratepayer Protection Pledge. This pledge aims to ensure that AI companies and data center operators, rather than consumers, bear the utility and infrastructure costs associated with data center development. The White House emphasized that this initiative is crucial for maintaining America's economic and technological leadership while protecting citizens from increased utility bills due to growing electricity demand from data centers.
The pledge, initially announced in March and described as non-binding by the Columbus Dispatch, requires signatories to implement its principles to protect consumers from price hikes. Governor DeWine reiterated the importance of protecting consumers and strengthening the grid while achieving economic development without shifting costs. This action follows DeWine's earlier announcement in late May to pause the consideration of new tax exemptions for data centers in Ohio, a state that ranks sixth nationally in data center count.
Ohio Senator Jon Husted introduced the Ratepayer Protection Act, a bill designed to codify these principles and prevent American taxpayers from subsidizing data center energy costs. Husted stated that the act would enable the necessary energy infrastructure for AI leadership without burdening families and small businesses. A bipartisan companion bill has been introduced in the U.S. House by Representatives Gabe Evans of Colorado and Kathy Castor of Florida. NetChoice policy director Patrick Hedger, however, argued that data centers already "pay their way" and that public utility commissions are legally prohibited from offloading large user costs onto residential customers.