Ohio economists say data centers have more costs than benefits under current laws

COLUMBUS, Ohio – A recent survey by Scioto Analysis, involving 14 Ohio economic professors, indicates that the economic benefits of data centers in Ohio do not currently outweigh their costs. Most economists agreed that while data centers can be productive, legislative updates are needed to ensure Ohioans, rather than just tech companies, benefit from their presence. Only one of the 14 economists supported current tax incentives, which offer sales tax breaks to data centers investing over $100 million and having an annual payroll exceeding $1.5 million. Economics Professor Albert Sumell of Youngstown State University stated that these incentives are a "worse use of public funds" due to minimal permanent jobs and high external costs. University of Cincinnati Chair in Political Economy David Brasington added that Ohio is already attractive to data centers, making incentives unnecessary. A majority of professors, eight out of 14, found the economic benefit of a new data center insufficient to justify its environmental and energy costs. Ohio residents have voiced concerns over rising electric bills and potential health issues. This has fueled local movements to ban data centers and a grassroots effort to introduce a statewide ban on new data center construction via a November ballot issue. However, most economists opposed an outright statewide ban, with only two agreeing to the idea. Instead, they recommended legislative reforms to make data centers more economically productive for the state. Bluffton University Professor Jonathan Andreas suggested stopping tax abatements and requiring data centers to contribute to electricity capacity upgrades, arguing that these companies have the financial resources to do so.