Tax dispute derails Ohio effort to regulate data centers

By Jeffrey Tomich | 06/12/2026 06:25 AM EDT

Lawmakers have mixed opinions on the amount of tax incentives the state should offer tech companies. The deadlock likely postpones any legislative action until at least the fall.

Ohio Gov. Mike DeWine speaks on Feb. 19 during an event at the National Governors Association Winter Meeting.

Ohio Gov. Mike DeWine speaks on Feb. 19 during an event at the National Governors Association's Winter Meeting. Allison Robbert/AP

A rush to pass sweeping data center regulations in Ohio hit a snag this week when legislative leaders couldn’t reach agreement on proposed tax incentive reforms.

Republican majorities in the House and Senate failed to find common ground on what — if any — tax breaks the Buckeye State should offer to lure data center development. The impasse means the Legislature is unlikely to revisit the issue again until the fall.

The setback deals a blow to some residents and state officials who wanted the Legislature to act quickly. Gov. Mike DeWine (R) last month paused sales tax exemptions originally established in 2014 following news reports that data centers received $1.6 billion in tax breaks last year — far exceeding earlier state tax department estimates.

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Revamping the tax exemption was a centerpiece of legislation passed Wednesday by the Senate.

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