Ohio Suspends Data Center Tax Break as Tech Firms Face Pressure to Pay for AI

The move by Republican Gov. Mike DeWine comes as the industry is under pressure to pay the full costs of its vast networks.

Ohio Suspends Data Center Tax Break as Tech Firms Face Pressure to Pay for AI
Photo of Gov. Mike DeWine, R-Ohio, from Feb. 2026, by Allison Robbert/AP

May 29, 2026 (AP) – Ohio, one of the nation’s data center destination hot spots, is suspending a tax break that has been critical to its competition with other states to attract the massive new facilities that power and train artificial intelligence chatbots.

Data Center
Facilities designed to house computer systems, servers, and other related equipment, data centers support critical computing functions.

The move Wednesday by Republican Gov. Mike DeWine comes as tax breaks for energy-hungry AI data centers are increasingly playing a role in state budgets and the industry is under pressure to pay the full costs of the vast network of its computing warehouses needed to power AI.

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