2 Ohio data centers get $42M tax break before pause

Ohio officials have approved a new $42.3 million tax exemption for two Cologix Inc. data center projects in the Columbus area, located in Delaware and Licking counties. This approval by the Ohio Tax Credit Authority occurred just days after Gov. Mike DeWine announced an indefinite pause on new data center tax exemptions, citing growing costs for the state. The Cologix projects, which were already in progress, were exempted from this pause.

As a condition for the state tax incentive, Cologix committed to spending $1.17 billion on construction, hiring 90 full-time workers by 2035 with a $10 million payroll, and operating the facilities for at least 13 years. One data center will be built on a 25-acre site in Orange Township, Delaware County, and another on a 150-acre site in Johnstown, Licking County. The projects are also receiving local property and income tax abatements from the Delaware County government and Johnstown city government.

The governor's moratorium on new tax breaks will continue while a special legislative committee holds hearings to gather facts on data centers' environmental, electricity cost, and economic impacts. Public testimony was heard at the Statehouse, including from a group seeking a statewide ban on large data center projects, highlighting ongoing opposition and concerns about the industry's rapid expansion and strain on the electrical system.

This approval raises the state's total data center tax exemption price tag since 2025 to nearly $2.17 billion, far exceeding initial estimates. Cologix reportedly considered Minnesota, Iowa, and Canada before choosing Ohio, with the state tax break being a "highly critical factor."