Ramaswamy, Acton push data center limits in Ohio
Three major Ohio gubernatorial candidates, Amy Acton, Vivek Ramaswamy, and Don Kissick, are proposing various forms of moratoriums and stricter regulations on the state's data center industry. Their plans aim to address concerns regarding electricity and water consumption, farmland use, and taxpayer incentives. Ohio lawmakers have previously struggled to pass similar legislation, making the 2026 governor's race critical for the industry's future in the state.
Three leading candidates for Ohio governor, Democrat Amy Acton, Republican Vivek Ramaswamy, and Libertarian Don Kissick, have outlined proposals to curb the rapid expansion of the state's data center industry. Their plans, though varied in approach, collectively respond to growing concerns over data centers' electricity and water usage, impact on farmland, and the large taxpayer-funded incentives.
Ramaswamy advocates for attracting data centers under stricter conditions, proposing a halt on new approvals until companies agree to pay local electric bills and full property taxes, adhere to strict environmental standards, and prioritize brownfield sites. He indicated he would use an executive order on his first day to implement these changes. Acton also supports a conditional moratorium, emphasizing that companies must cover all project-related costs, protect the environment, provide transparent plans, and engage in community benefit agreements. She seeks to limit tax incentives and introduce clawback rules, while also questioning the feasibility of Ramaswamy's free electricity proposal.
Kissick takes the most stringent stance, calling for an immediate ban on new data center development until statewide standards are established. His plan includes eliminating non-disclosure agreements and special tax incentives, requiring data centers to generate their own power, use closed-loop cooling systems, and opposing eminent domain for such projects. Ohio Governor Mike DeWine, while welcoming the candidates' focus, cautioned against a complete ban, stressing the need to balance economic growth with community concerns.
Previous legislative attempts, such as House Bill 646, which aimed to limit sales tax exemptions, address water conservation, and create a separate electric rate class for data centers, failed to pass. This underscores the potential for the upcoming 2026 gubernatorial election to significantly shape the regulatory landscape for data centers in Ohio.