Ohio suspends datacenter tax breaks after $1.5 billion revenue loss in 2025
By
Dan Robinson
The bagel they save for the regulars. Don't skim, savour.
Summary
Ohio has suspended tax breaks for datacenters after discovering the incentives cost the state over $1.5 billion in revenue in 2025 alone. Governor Mike DeWine ordered a pause on new sales tax exemption requests while officials review the economic impact. The tax break program's costs have ballooned far beyond initial estimates, prompting the state to reassess its approach to attracting server farm investments.
Key quotes
· 3 pulledThe US state of Ohio has suspended tax breaks for datacenters, amid claims that the policy cost the state more than $1.5 billion in revenue during in 2025 alone.
Ohio's Republican Governor Mike DeWine declared a pause in the state's server farm subsidy, directing its Tax Credit Authority to stop considering new datacenter sales tax exemption requests while officials review the industry's costs and impacts.
According to the Associated Press, the amount of money involved in Ohio's tax break has ballooned, hugely exceeding earlier estimates.
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