Sen. Moreno joins growing backlash to data centers

Sen. Bernie Moreno, R-Ohio, has joined a growing chorus of opposition against data centers, specifically targeting a $4.5 million tax break awarded to Carlyle Group's Ark Data Centers. In a letter to the global financial firm, Moreno criticized the tax exemption, which supported $136 million in data center expansions in Akron and Independence, noting it would only create 10 long-term jobs. The Ohio Tax Credit Authority had approved a 50%, 10-year sales tax exemption for equipment at these facilities on March 2. Moreno described the tax break as "grotesque" and urged the company to sign President Donald Trump's ratepayer protection pledge, which requires tech companies to cover the full cost of their energy infrastructure needs. Moreno outlined several expectations for tech companies in Ohio, including foregoing taxpayer incentives, improving discharged water quality, investing in workforce training, avoiding prime farmland, and being good community partners. The Carlyle Group has not responded to his comments. This opposition follows nearly a decade of policies in Ohio incentivizing data center construction, with the state providing approximately $2.5 billion in tax exemptions between 2017 and 2024, making it home to 217 data centers. While proponents argue incentives attract investment and create construction jobs, communities and lawmakers are increasingly questioning their value due to low long-term job creation and massive electricity consumption that can strain utilities and raise bills. Miquel Vila, an analyst with Data Center Watch, reports that local opposition blocked or delayed $150 billion in planned data center investments in 2025. Even former supporters like Sen. Jon Husted, R-Ohio, acknowledge these growing concerns. Ohio lawmakers previously voted to repeal the state's tax exemption for data centers and are now working to override Gov. Mike DeWine's veto of the measure. A grassroots group is also collecting signatures for a statewide referendum to restrict new data center construction.