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June 3, 2026

Ohio suspends tax break for data centers as tech firms face pressure to pay the cost of powering AI

  • The state projected the exemption would total $136 million and $142 million in fiscal 2025 and 2026, but it was $554 million in 2024 and nearly $1.6 billion in 2025.
    • By MARC LEVY
    Associated Press

    Ohio, one of the nation's data center destination hot spots, is suspending a tax break that has been critical to its competition with other states to attract the massive new facilities that power and train artificial intelligence chatbots.

    The move Wednesday by Republican Gov. Mike DeWine comes as tax breaks for energy-hungry AI data centers are increasingly playing a role in state budgets and the industry is under pressure to pay the full costs of the vast network of computing warehouses needed to power AI.


     
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