Columbus, Ohio – Ohio Governor Mike DeWine announced that the state will temporarily stop considering new data center tax exemption requests while lawmakers continue studying the rapid expansion of data centers across Ohio.
According to the governor’s office, DeWine directed the chair of the Ohio Tax Credit Authority to pause the review of any new applications connected to data center tax incentives.
The decision comes as the Ohio General Assembly’s Joint Data Center Committee continues examining the effects of large-scale data center growth throughout the state.
Governor DeWine emphasized that data centers have become increasingly important in today’s technology-focused economy and noted that Ohio has successfully attracted major business investments partly because of the state’s infrastructure.
“Data centers are a critical component to today’s technology-driven economy, which depends on the virtual, large-scale exchange of information,” DeWine said.
“One of the reasons Ohio has been so successful in attracting new businesses and creating new jobs is that we have invested in the data infrastructure needed to support complex technological innovation,” he added.
State Reviewing Impact of Rapid Data Center Growth
The governor also pointed to the large amount of investment already tied to data centers that previously received tax benefits in Ohio.
According to state officials, data centers granted sales and use tax incentives in Ohio reported a combined capital investment of $27.2 billion in 2025 alone.
Despite supporting the industry, DeWine said lawmakers should continue reviewing the full effects data centers may have on local communities before additional tax exemptions are approved.
“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.
“As this work is ongoing, I believe it is appropriate for the Ohio Tax Credit Authority to pause its consideration of new data center tax exemptions while the full impact of data center growth in Ohio is being reviewed,” he continued.
State officials clarified that the action is not a ban on data centers operating or expanding within Ohio.
Instead, the temporary measure only affects the ability of future projects to apply for new tax exemptions during the review process.
The Ohio Tax Credit Authority will officially stop accepting new data center tax exemption proposals after its currently scheduled meeting on Monday.
At that meeting, officials are still expected to review one previously scheduled tax exemption request tied to a data center project.
The announcement comes as states across the country continue seeing rapid growth in data center construction fueled by increased demand for cloud computing, artificial intelligence systems, online services, and large-scale digital storage infrastructure.
Ohio lawmakers are expected to continue evaluating the economic impact, energy demands, local benefits, and potential long-term effects of the growing data center industry before deciding whether additional policy changes or incentive adjustments are necessary.
