Ohio data centers get a $42 million tax break, despite the opposition from Ohioans

Ohio officials approved a new $42.3 million tax exemption for two data centers in the Columbus area on Monday, likely the last such breaks for a while, after Republican Gov. Mike DeWine announced an indefinite pause on data centers’ tax exemptions.

The Ohio Tax Credit Authority, which reviewed proposals that JobsOhio and regional partners tendered,  supported the 50%, 10-year data center sales tax exemption for Cologix Inc. and Cologix US, Inc., with the data centers being located in Orange Township in Delaware County and the city of Johnstown in Licking County, according to DeWine’s Monday press release.

By allowing the data centers to be built, the companies expect to create 90 full-time jobs, which would allegedly generate $10 million in new annual payroll by Dec. 31, 2028, the press release added. Each of the 90 employees would receive $111,000.

Signal Ohio reported that Cologix said that it will spend $1.17 billion on the construction of the new data centers, adding that it will “retain nearly $5.2 million in payroll at its [current Ohio] locations.” The new centers would keep working for at least 13 years, according to the news source.

Ohio officials also approved other projects in the state for manufacturers, including OPmobility, Hikma Pharmaceuticals, and Aerovironment, in sectors ranging from automotive parts to defense and pharmaceuticals, which allegedly will bring more than 1,618 new jobs, the retention of 1,835 existing positions, over $133 million in new annual payroll, and $1.8 billion in total investments across the Buckeye State.

Data centers have been controversial in the state. Many Ohioans have voiced their opposition, arguing that they negatively affect the environment and their health. Opponents have also voiced concerns that building data centers would increase electricity prices for Ohioans. On the other hand, supporters of data centers said the centers will improve the state’s economy by bringing high-paying jobs to Ohio.

“The proposed developments by Cologix in both Orange Township and Johnstown bring significant investment in tax generation. Neither community has ever experienced industrial investment at this scale,” Allison Rowland, an official with One Columbus, an economic development nonprofit, told Signal Ohio.

Ohio policymakers are also pressuring the Big Tech companies behind the data centers in Ohio to fund grid expansions so that regular Ohioans would not be forced to pay higher electricity bills.