Ohio Data Center Tax Breaks Under Fire Amid AI Boom

Ohio is reconsidering its data center tax breaks, which have become a major issue for tech giants like Amazon (AMZN), Meta (META), and Alphabet's Google (GOOGL). The state's original estimate of $130 million in tax exemptions was far exceeded, with the value reaching over $1.5 billion in 2025.

The tax breaks were offered more than a decade ago to attract investment to Ohio. However, the AI boom has driven up the cost of sales-tax exemptions, sparking concerns over power and water consumption.

Lawmakers are now pushing for new data-center taxes and higher contributions toward power and electrical infrastructure. Republican Gov. Mike DeWine paused new applications for the exemption after public backlash in May.