Governor Mike DeWine announced a pause Wednesday on new data center tax exemption requests in Ohio while state lawmakers study the impact of rapid data center growth across the state. Under the directive, the Ohio Tax Credit Authority will stop accepting new requests for data center sales and use tax exemptions after its currently scheduled meeting Monday. The pause does not ban new data centers, but temporarily halts consideration of new tax incentive applications. DeWine said the move comes as the Ohio General Assembly’s Joint Data Center Committee continues reviewing the economic and community impacts of the industry. “Data centers are a critical component to today’s technology-driven economy,” DeWine said. “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.” The governor said previously approved data center projects in Ohio have reported a combined $27.2 billion in capital investment in 2025. The announcement drew criticism from the Ohio Chamber of Commerce. Ohio Chamber President and CEO Steve Stivers said the organization was disappointed by the pause, arguing Ohio risks losing major economic opportunities to neighboring states that continue offering incentives to attract data center development. Stivers cited an Ohio Chamber Research Foundation study that found the industry generates $26.4 billion annually in economic output, supports approximately 95,000 jobs statewide, and produces a net $1 billion each year in state and local tax revenue.
“We are committed to working with our partners in the industry, Gov. Mike DeWine, and the Ohio General Assembly to examine ways to modify the exemption that keep our state economically competitive while protecting ratepayers and complying with all local zoning regulations,” Stivers said. State lawmakers are expected to continue reviewing the issue in the coming months as Ohio weighs the economic benefits of data center growth against concerns involving infrastructure, utilities, and local community impacts.
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