Amazon's Ohio Data-Centre Bet Faces Tax Shock
Amazon's nearly $40 billion data-centre buildout in Ohio is facing a new risk as lawmakers reconsider tax breaks that helped turn the state into a major cloud-computing hub. The immediate numbers are unlikely to threaten Amazon's balance sheet, but the bigger issue is what happens to the economics of its AI expansion if states begin asking Big Tech to pay more.
Amazon has invested nearly $40 billion in Ohio data centres since 2015, and paid almost $11 million in property taxes and fees last year. The state's sales-tax exemption for data-centre equipment cost it more than $1.5 billion in 2025, versus an earlier estimate of about $136 million. Governor Mike DeWine paused new exemption requests in May while lawmakers review the programme.
Some legislators want the break repealed, while bipartisan proposals would require data centres to shoulder more grid-upgrade costs created by their electricity demand. Morgan Stanley's Ariana Salvatore said on the firm's Thoughts on the Market podcast that 'the biggest debate far and away is on data center pushback', identifying Ohio among states where development could become more conditional.