Gov. Mike DeWine’s data center advice for Ohio cities and towns: Go make a deal
Ohio Governor Mike DeWine advised cities and towns to aggressively negotiate deals with data center developers, seeking concessions on water use and electricity costs. His administration has already paused a significant sales tax exemption for new projects, while the state legislature is preparing new data center regulations.
Gov. Mike DeWine encouraged Ohio's municipalities to proactively negotiate with data center developers for concessions, advocating for agreements that include water conservation measures and developer-funded electricity costs. Speaking at the Rockefeller Foundation’s Big Bets for America summit in Cleveland, DeWine acknowledged the controversial nature of data center expansion but emphasized that the state cannot prevent their development, positioning them as essential to Ohio's high-tech future.
The Governor's recommendations included an assertive approach from local governments, urging them not to passively accept developer terms but to demand favorable conditions beneficial to their communities. He highlighted the importance of securing commitments on environmental impact, specifically water usage, and ensuring the financial burden of power infrastructure does not fall solely on the public.
Concurrently, DeWine's administration has taken significant steps at the state level by pausing a sales tax exemption for new data center projects. This exemption had cost the state an unexpected $1.6 billion. DeWine indicated this pause would continue indefinitely but expressed confidence that data centers would still be attracted to Ohio. Meanwhile, the state legislature in Columbus is actively drafting new regulations concerning data center development, signaling a broader governmental effort to manage their growth and impact within the state.