Ohio Governor Mike DeWine has ordered a temporary halt on new data center tax exemption requests as state lawmakers undertake a deeper review of the industry’s rapid growth and financial impact. The move matters because Ohio has become a major destination for large-scale data center development, and the tax incentives tied to those projects have grown significantly in cost.
DeWine directed the Ohio Tax Credit Authority to pause consideration of new exemption applications while the Ohio General Assembly’s Joint Data Center Committee studies how data centers are affecting communities, infrastructure, and state finances. According to the governor’s office, companies that previously received sales and use tax benefits reported a combined $27.2 billion in capital investment in 2025.
The pause will take effect after the authority’s next scheduled meeting, where one previously submitted request will still be reviewed. Officials emphasized that the action does not ban data centers from being built in Ohio; it only suspends new applications for the tax break.
State leaders launched the review as data center incentives drew heightened scrutiny. Reporting from Signal Ohio showed the state underestimated the cost of the tax break by more than $1 billion, prompting bipartisan concern about the long-term fiscal impact.
The Joint Data Center Committee plans to gather testimony from industry representatives, workers, and residents as it evaluates economic, environmental, and community effects. DeWine said he supports the effort to bring forward clear facts about the benefits and impacts of data center development before considering additional exemptions.