State National

Ohio House passes bill to make data centers more accountable as Sen. Moreno criticizes their tax breaks

Photo by Brett Sayles: https://www.pexels.com/photo/server-racks-on-data-center-5480781/

The Ohio House unanimously passed a bill on Wednesday to establish the Ohio Data Center Study Commission, with the legislation now going to the Ohio Senate for consideration.

House Bill 646, sponsored by state Reps. Gary Click, R-Vickery, and Kellie Deeter, R-Norwalk, is a response to the Big Tech companies rapidly building their data centers all around the Buckeye State, which resulted in 200 data centers operating in the state as of Thursday, according to the press release.

“This legislation originated in the heart of the 88th district, in response to my constituents. They have questions that deserve answers. They are not alone. The entire Buckeye State is experiencing angst over unresolved questions surrounding the rapid rise of data centers, and they deserve to have their voices heard,” Click said in the press release.

Deeter agreed with Click that the commission “is the first of its kind in the nation and will provide reasonable, rational, and meaningful answers to the questions that Ohioans are asking,” adding that “Ohio has always been a leader in industry and innovation, from manufacturing to aerospace to advanced technology,” which comes with a cost to the residents.

“With the rapid growth of the digital frontier, there are implications for our electric grid, our infrastructure, and the communities that host them. Rather than waiting to react after challenges arise, this legislation allows Ohio to study these issues now so we can make smart, informed decisions for the future,” he said in the press release.

The bill would create the commission within the Department of Development, with members appointed by Ohio’s Governor, Speaker of the House, and President of the Senate that meet certain criteria, “require the commission to examine various topics regarding data centers,” as well as “require the commission to submit a report of its findings and any legislative recommendations to the Governor and the General Assembly not more than six months after the bill’s effective date,” according to the press release.

State Rep. Tom Yong, R-Washington Twp., supported the bill on Wednesday, saying that “this commission is extremely important,” according to The Springfield News-Sun.

“We need to understand the total economic and environmental impact on everyone affected,” he told the news outlet.

House Speaker Matt Huffman, R-Lima, also approved the bill, saying that the commission would make data centers more accountable by allowing people to criticize them on a more public platform, according to The Springfield News-Sun.

“I don’t think these entities should have special treatment, given today’s climate,” he said. “Maybe it made sense 15 years ago to try to attract them, but there are many other benefits to coming to Ohio besides this particular exemption.”

One day before the Ohio House passed the bill, U.S. Sen. Bernie Moreno, R-Ohio, criticized a global private-equity company for taking a $4.5 million state tax exemption for its $136 million Northeast Ohio data-center expansion project that will only create 10 new jobs in Ohio.

In his letter to The Carlyle Group and the Ohio Tax Credit Authority that he shared on X, he called the 10-year state sales tax exemption “unjustified,” “ridiculous,” and “a sweetheart deal for Wall Street while everyday Ohioans are forced to foot the bill.”

“Why are hardworking Ohio taxpayers being asked to subsidize a project that creates so few jobs while a global private equity powerhouse gets a free ride?” Moreno asked in the letter. “It’s unfair, it’s unnecessary, and it’s time to call it what it is: a bad deal for the people of Ohio.”

Moreno also urged the Carlyle Group to “commit to creating more jobs through the data center expansion,“ as well as “immediately” sign onto President Donald Trump’s ‘Ratepayer Protection Pledge,’ which would require the companies operating data centers to fully cover the electricity cost for the centers, since the high electricity bill could become a potential problem for Ohioans.