Governor DeWine announces pause of data center tax exemption

Ohio Governor Mike DeWine announced a directive to the Ohio Tax Credit Authority to pause consideration of any new data center tax exemption requests. This pause is intended to allow the Ohio General Assembly's Joint Data Center Committee to study the growth and impact of data centers across the state.

Governor DeWine stated his support for the General Assembly's work to gather facts about data centers, including the local benefits provided when tax exemptions are granted. He emphasized that the pause is appropriate while the full impact of data center growth in Ohio is being reviewed. The Ohio Tax Credit Authority will cease accepting new proposals after its next scheduled meeting, where one existing request will still be considered. The Governor clarified that this action only suspends the ability for new tax exemption requests and is not a data center ban.

Steve Stivers, President & CEO of the Ohio Chamber of Commerce, expressed disappointment regarding the announcement. He highlighted that surrounding states offer comparable or more expansive incentives, and Ohio risks forfeiting significant economic gains. Stivers cited a Research Foundation study indicating the data center sector generates $26.4 billion annually in economic output, supports 95,000 jobs, and yields $1 billion in state and local tax revenue. The Chamber is committed to collaborating with the industry, Governor DeWine, and the General Assembly to modify the exemption, aiming to maintain Ohio's economic competitiveness while protecting ratepayers and ensuring compliance with local zoning regulations.