Ohio Gov. Mike DeWine announced Wednesday that he has directed the chair of the Ohio Tax Credit Authority to pause consideration of any new data center tax exemption requests while a bipartisan legislative committee studies the industry’s growth in the state.

The announcement came the same day the Ohio General Assembly’s Joint Data Center Committee held its first meeting in Columbus. Sen. Bill Reineke (R-Tiffin), who represents the 26th Senate District covering Seneca, Sandusky and five other counties, sits on the panel.

The Ohio Tax Credit Authority will stop accepting new data center tax exemption proposals after its scheduled meeting on Monday, June 1, where one existing tax exemption request will still be considered, according to the governor’s office. The pause does not affect data center construction itself or the sales-tax breaks already granted to companies such as Amazon, Google, Microsoft and Meta.

Local lawmaker on the review panel

The committee is co-chaired by Sen. Brian Chavez (R-Marietta) and Rep. Adam Holmes (R-Nashport). Along with Reineke, members include Rep. Thad Claggett (R-Licking County), Rep. Heidi Workman (R-Rootstown), Rep. Chris Glassburn (D-North Olmsted), Sen. Shane Wilkin (R-Hillsboro) and Sen. Willis Blackshear Jr. (D-Dayton).

The committee plans to meet weekly and will take testimony from data center workers, residents and companies such as Google and Meta. According to a statement from Holmes, the committee’s mission is to ensure Ohioans have “accurate, relevant and usable information concerning the economic, environmental, and security impacts of Ohio data center development.”

Reineke is currently the only declared candidate for Ohio Senate president in the next General Assembly, a position he could assume in 2027.

DeWine’s reversal

DeWine had previously defended the data center tax break. In June 2025, he vetoed a line in the state operating budget that would have ended the Ohio Department of Taxation’s authority to grant the exemption, calling the incentive “important as Ohio competes with other states for technology jobs and capital investment.”

House Speaker Matt Huffman (R-Lima) has been working to round up votes for a veto override.

In Wednesday’s statement, DeWine signaled a more cautious stance.

“Data centers are a critical component to today’s technology-driven economy, which depends on the virtual, large-scale exchange of information,” DeWine said. “One of the reasons Ohio has been so successful in attracting new businesses and creating new jobs is that we have invested in the data infrastructure needed to support complex technological innovation.”

He added: “I fully support the Ohio General Assembly’s work to study the issue and bring forward facts about data centers, including the local benefits to communities when tax exemptions are granted. As this work is ongoing, I believe it is appropriate for the Ohio Tax Credit Authority to pause its consideration of new data center tax exemptions while the full impact of data center growth in Ohio is being reviewed.”

The cost question

The governor’s office said data centers that have previously received sales and use tax benefits in Ohio reported a total capital investment of $27.2 billion in 2025.

The pause follows Signal Ohio reporting that revealed the state had underestimated the cost of the data center tax break by more than $1 billion, intensifying scrutiny of an incentive that has been on the books for years but has drawn growing criticism as the industry has expanded.

Roughly 200 data centers are estimated to be operating in Ohio.

Ballot effort continues

The legislative review is not the only pressure point on the industry. A volunteer-led campaign is gathering signatures for a proposed constitutional amendment that would prohibit construction of data centers with a peak load of more than 25 megawatts per month. Organizers need 413,487 valid signatures from at least 44 of Ohio’s 88 counties by July 1 to qualify for the November ballot.

DeWine’s office emphasized that Wednesday’s action only suspends the ability for data centers to request new tax exemptions in Ohio. “It is not a data center ban,” the release said.