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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Otoe County officials voted last month to suspend permits for new data centers for as long as one year. The move follows resident concerns about water use, electricity costs, and potential heat impacts from the facilities.

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The Maine House and Senate approved LD 307 this week, imposing a moratorium on new data centers requiring 20 megawatts or more until at least October 2027. The bill, which prohibits state and local approvals for such facilities, now awaits action from Gov. Janet Mills amid national concerns over surging energy demands from AI infrastructure.

Plans for a large data center complex in rural Utah have sparked public opposition due to concerns about energy use, water consumption and impacts on the Great Salt Lake.

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Democratic Senator Elizabeth Warren and Republican Senator Josh Hawley have called on the Energy Information Administration to require annual reporting on data center energy use. The bipartisan letter, sent on Thursday, aims to address the growing demands of artificial intelligence infrastructure. It highlights concerns over electricity costs for families amid expanding data centers.

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