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.
Residents in the communities have called for more responsible data center development for several months.
Jessica Sharp, a Wilmington resident who lives next to a proposed Amazon Web Services site, told WCPO there is a broader frustration.
"Ohio, just as a whole just being fed up with how we've been treated in this process. How there have been what it appears to be predetermined outcomes," Sharp said.
Sharp said the uncertainty has weighed heavily on her family's future as she lives right next to the proposed data center site.
WATCH: Here's what Ohio residents and leaders have said about the impact of data centers
"I've got an 18-month-old daughter, we've got one on the way. We bought this house, this was supposed to be where we raised our kids and stayed for the next 20, 30 years," Sharp said. "And it feels like all of that is just kind of in flux now. Like, we don't know if this is going to be like a safe and healthy place to raise our family."
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.
According to the Ohio Consumers' Council, there are over 200 operational data centers in the state. With the artificial intelligence and technology boom, an additional 80 facilities are proposed or slated for development statewide.
Republican state Rep. Adam Holmes said the commission is focused on understanding community concerns.
"We recognize the concerns that have risen in some citizens about the impact of data centers on our local communities," Holmes said.
Commission members say their role is fact-finding — providing policymakers and the public with a clearer picture of how data centers affect Ohio communities.
Dan Diorio, the vice president of state policy with the Data Center Coalition, said the industry plays a broad role in everyday life.
"AI is an important growth driver. There's no question about. But as I described, there are many products and services being facilitated by digital infrastructure; telehealth appointments, electronic healthcare records, online banking transactions, any financial transaction," Diorio said.
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.
