Ohio pauses data center tax incentive program amid public backlash
Ohio has paused its data center tax incentive program due to swift public backlash and ballooning costs, including $1.6 billion in lost revenue last year. Governor Mike DeWine made the decision, and a new joint legislative committee will now investigate the program and provide guidance to local governments. Communities like Waterville have already begun enacting legislation against potential data center projects.
Ohio Governor Mike DeWine has paused the state's program offering tax incentives to data centers. This decision comes amid significant public backlash from communities across Ohio and after the program reportedly cost the state $1.6 billion in lost revenue last year, which is eleven times more than the original state estimate.
While the Governor's office argues there is a return on investment, with companies reporting a total capital investment of $27.2 billion dollars after receiving $1.5 billion in tax breaks, public and community concerns persist. These concerns range from noise to resource use (electricity and water). The data center industry will have an opportunity to defend itself before a newly formed joint legislative committee. This committee, tasked with a fact-finding mission, aims to provide guidance to local governments struggling with data center debates.
The committee will also investigate the ballooning tax breaks. Public testimony is slated for the upcoming week, where both industry representatives and the general public will have a chance to speak. Meanwhile, communities in Northwest Ohio, such as the City of Waterville, have already begun enacting their own legislation in response to potential data center projects.