COLUMBUS, Ohio — Ohio is pausing the consideration of tax exemptions for any new data centers as state lawmakers look into the growth of data centers in the state, Gov. Mike DeWine announced Wednesday.
The General Assembly announced earlier this month a new joint committee that the Ohio Senate said will focus on "(opening) the door to data centers by explaining why they're important, how they work, and what the best policy moving forward should be."
Their announcement comes on the heels of many residents fighting against data centers being built in their communities. We've covered proposed data centers and the backlash over them in Clinton County, Butler County and Adams County.
In a release, DeWine called data centers "a critical component to today's technology-driven economy," bringing in a reported total capital investment of just over $27 billion last year. But said he believes it is appropriate to pause consideration of tax exemptions for new data centers as the committee reviews the full impact.
"I fully support the Ohio General Assembly's work to study the issue and bring forward facts about data centers, including the local benefits to communities when tax exemptions are granted," DeWine said.
The governor directed the chair of the Ohio Tax Credit Authority to stop accepting new data center tax exemption proposals after its scheduled meeting on Monday, where any existing requests will still be considered.
It is unclear when the joint committee will end its work, as committee hearings began Wednesday. The pause, the governor said, will only impact possible tax exemptions, not the building of data centers.
