Just before moratorium, two last Ohio data centers get a $42 million tax break
Ohio officials approved a $42.3 million tax exemption for two Cologix data center projects in Delaware and Licking counties, days before Governor Mike DeWine announced a pause on new data center tax exemptions statewide. The pause, enacted by the Ohio Tax Credit Authority, comes amidst growing scrutiny over the high cost of these tax breaks and the environmental and electrical grid impacts of data centers. A special legislative committee is holding hearings on the issue.
The Ohio Tax Credit Authority has approved a $42.3 million tax exemption for two large Cologix data center projects in the Columbus metropolitan area, specifically in Orange Township, Delaware County, and Johnstown, Licking County. This approval, made on Monday, will be the last of its kind for the foreseeable future, as Governor Mike DeWine announced a statewide pause on new data center tax exemptions last Wednesday.
Cologix has committed to a $1.17 billion investment in these new facilities and will create 90 full-time jobs by 2035 with a $10 million payroll. The company considered other states and Canada, but the Ohio tax break was a critical factor in its decision. The projects are substantial, with the Johnstown facility planned for a 150-acre site, potentially using up to 176 megawatts of electricity, and the Delaware County site on 25 acres, possibly reaching 75 megawatts.
Local government support includes a 10-year, 50% property tax abatement from Delaware County for the smaller project and a 15-year, 100% property tax abatement from the city of Johnstown for the larger one. The governor's pause on tax exemptions and legislative hearings on data centers were prompted by the escalating costs of these tax breaks, which have exceeded $2 billion, and public concerns over data centers' environmental impact and strain on the electrical grid. A group seeking to ban large data center projects statewide held a press conference and testified before the legislative committee, indicating ongoing opposition to the industry's expansion.