Cleveland group supports data centers; tax breaks cost $1.5B in 2025
The Greater Cleveland Partnership advocates for a "smart growth approach" to data centers in Ohio, opposing statewide bans and moratoriums. This stance comes amidst a strong push by opponents for a constitutional amendment to ban large data centers and calls from State Senator Kent Smith to repeal significant tax exemptions, citing a $1.5 billion cost to the state. Concerns over electricity, water consumption, and environmental pollution are central to the opposition.
The Greater Cleveland Partnership, a major Ohio business group with 12,000 members, has publicly supported a "smart growth approach" to data center development across the state. The organization argues that bans and moratoriums on data centers, such as those proposed by various opposition groups, do not protect communities but rather shift investment elsewhere, preventing economic opportunity and infrastructure growth. They consider data centers critical technology infrastructure essential for artificial intelligence, cloud services, and economic expansion.
This advocacy from the Greater Cleveland Partnership emerges as Ohio faces widespread opposition to data center growth. A significant movement is underway to gather signatures for a state constitutional amendment that would ban new large data centers, aiming to place the issue on the November ballot. Opponents primarily voice concerns over excessive electric power and water consumption, fearing potential strain on the aging power grid and depletion of water reserves. The Environmental Health Project, a nonprofit, has also highlighted potential health risks from noise, light, air, and water pollution, particularly from hyperscale data centers powered by fossil fuels.
Further fueling the debate, State Senator Kent Smith, a Democrat from Euclid, has demanded an immediate end to tax exemptions for data centers. Senator Smith cited a new Ohio Department of Taxation report, which revealed that data center tax breaks are projected to cost the state over $1.5 billion in 2025, significantly exceeding the initial 2024 estimate of $135.8 million. Smith, along with Senator Blessing, has been pushing for the repeal of these tax breaks since December 2024, arguing that earlier action could have saved Ohioans substantial funds and that the current costs make it the "worst tax break in Ohio's history." The Ohio legislature has also established a study committee to examine the issue.