COLUMBUS — Gov. Mike DeWine announced this week that Ohio is pausing tax exemptions for new data centers, escalating the state’s response to a building boom that has raised concerns about rising electricity costs for Ohio families and businesses.
Under the new policy, the state will not accept new proposals for data center tax exemptions, the governor announced. The pause marks a sharp shift from earlier this year, when lawmakers attempted to repeal the tax breaks outright — a provision DeWine vetoed.
The move comes as data center proposals have multiplied across the state, driven by demand for computing power behind artificial intelligence and cloud services. Utility bills have become a political flashpoint in Ohio, with residents and candidates in both parties pointing to the massive power demands of data centers as a driver of higher rates.
Democratic gubernatorial candidate Amy Acton has called on lawmakers to pass a conditional moratorium on data center projects when they return to Columbus, making the issue a centerpiece of the governor’s race. Republican nominee Vivek Ramaswamy has also pressed for relief on energy costs.
For the governor, the pause on new tax exemptions threads a needle: it slows the pipeline of subsidized data center projects without undoing the deals already in place. State officials have not said how long the pause will last or what conditions, if any, could reopen the program to new applicants.
With lawmakers set to return to Columbus next week, the data center debate is expected to be one of the most closely watched fights of the session.
