Ohio suspends data center tax breaks after revenue loss

Ohio has suspended tax breaks for new data center projects after losing $1.5 billion in revenue. Ongoing projects will continue to receive the exemptions. New developments will not qualify for now.

State officials ended the tax exemptions for future data center builds. The policy change follows substantial revenue shortfalls amounting to $1.5 billion. Projects already underway remain eligible for the benefits under the prior rules. New initiatives face the suspension until further notice. The decision targets only fresh applications for tax relief in the sector.

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Photorealistic image of Gov. Hochul signing data center pause order with halted construction site in background
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New York governor pauses large data center construction

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New York Gov. Kathy Hochul signed an order pausing construction of large data centers for up to a year. The move marks the first statewide pause in the country. It halts new hyperscale data center approvals pending environmental rules.

New York Governor Kathy Hochul issued an executive order Tuesday imposing a one-year moratorium on large-scale data center construction. The move marks the first such statewide pause in the nation. Hochul cited concerns over rising electricity costs and strain on natural resources.

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Communities across the United States blocked or delayed at least 75 data center projects worth about 130 billion dollars from January through March 2026. Researchers described the period as the most blocked and delayed on record since tracking began in 2023. The opposition reflects a structural shift in local resistance to such developments.

Residents packed a virtual town hall meeting to express strong opposition to the rapid expansion of data centers in Pennsylvania. Speakers blamed the projects for higher electricity costs, heavy water consumption, and noise issues while criticizing Governor Josh Shapiro for supporting the industry.

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Ireland’s data centers consumed 23 percent of the country’s electricity last year after their power use rose 360 percent in a decade. Consumption is projected to soon match the total used by all homes combined. The growth continues despite a moratorium on new data center grid connections.

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