Ohio Senator Seeks Federal Action on Data Center Costs Amid Political Backlash
Ohio Senator Jon Husted, who previously supported data center tax breaks as lieutenant governor, is now facing political backlash due to public outrage over the industry's impact on resources and costs. He is shifting his stance and co-sponsoring federal legislation, the "Ratepayer Protection Act," to make tech companies cover utility costs related to data center buildouts. Meanwhile, Governor Mike DeWine has paused new sales-tax exemption applications for data centers in Ohio.
Sen. Jon Husted (R-OH), appointed to fill Vice President JD Vance's Senate seat, is facing a challenging special election in November 2026. His past fervent support for data center construction and associated tax breaks as Ohio's lieutenant governor is now a significant campaign liability, particularly against his opponent, former Sen. Sherrod Brown (D-OH).
Ohio, which currently hosts over 240 data centers, including a massive project in Pike County, had previously implemented sales tax exemptions to spur economic growth. However, a growing public outcry against the rapid development of AI data centers and their impact on water supply, air quality, and affordable electricity has made the issue politically toxic. This public pushback led Republican Gov. Mike DeWine to place a pause on new applications for sales-tax exemptions in May, with some state lawmakers pushing for a full repeal of these incentives.
Husted is now attempting to adjust his public position, acknowledging the backlash and agreeing with the state's pause on tax breaks. He attributes the public's anger to "Big Tech's" failure to communicate the benefits of their technology and their unwillingness to cover the rising energy costs. Concurrently, Husted is co-sponsoring the "Ratepayer Protection Act" in Congress, a bill aimed at forcing tech companies to cover the costs of utility upgrades required for their data center operations, though its swift passage in the Senate is uncertain amidst the ongoing political climate.