Ohio suspends data center tax breaks after losing $1.5 billion in revenue – but ongoing projects will still get…

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  • Ohio's tax exemption for data centers has been temporarily paused for new projects
  • The scheme was projected to cost $136m in 2025, but it cost nearly $1.6b
  • Hyperscalers invested over $27b in the state in 2025 alone

Ohio Governor Mike DeWine has issued a temporary reversal of the state's tax exemption for data centers while lawmakers review the program and its impact on state finances, energy infrastructure and local communities.

According to the Associated Press, the change only impacts new applicants and won't be applied to previously approved incentives.

The change comes as the number of data center projects in Ohio grows, with major hyperscalers like Amazon, Microsoft, Google and Meta all calling the state home for some of their cloud operations.

Ohio to temporarily pause data center tax exemption

AP reports that the state had predicted a $136 million loss in taxes in 2025 due to...

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