Two central Ohio data center projects narrowly skirted Gov. Mike DeWine’s pause on data center tax breaks, paving the way for their $1.1 billion investment likely to be the last to get such relief for the foreseeable future.
On May 27, DeWine announced a moratorium on data centers sales tax breaks after such breaks cost the state nearly $1.6 billion in 2025, according to the Department of Taxation. That price tag, first reported by Signal Ohio, well surpassed the original $136 million estimate.
The numbers angered Ohio lawmakers, and criticism of data centers has been growing rapidly amongst Ohio communities, prompting more scrutinous review.
“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,” DeWine said in a May 27 press release, noting the pause would officially take effect after the June 1 Ohio Tax Credit Authority meeting.
Colorado-based Cologix, Inc. plans to build two new data centers in Delaware and Licking counties, adding to the over 100 data centers already populating the Columbus Region. At its June 1 meeting, the Ohio Tax Credit Authority announced a 50%, 10-year sales tax exemption for the projects, which are expected to add 90 full-time jobs and generate $10 million in payroll come the end of 2028. The deal was already in process at the time of DeWine’s announcement to pause the state’s sales tax breaks for data centers.
The projects “will strengthen the Columbus Region’s position as a growing hub for digital infrastructure and advanced technology investment,” according to a Cologix, Inc press release.
The developments are part of an even larger plan — a $7 billion Cologix data center complex in central Ohio, spanning eight data centers across 154 acres.
Other Columbus area projects generate nearly $50 million
Hundreds more jobs and tens of millions more in revenue were announced at the June 1 meeting.
Hikma Pharmaceuticals, a pharmaceutical manufacturing company with global headquarters in the United Kingdom, is expected to add 350 jobs. Hikma Pharmaceuticals said in a press release that the company plans to invest a total of $267 million across its Columbus and Bedford facilities as part of the development.
The investment will ultimately generate $28.5 million in new annual payroll as part of the company’s projects in Bedford and Columbus by the end of 2030.
The Ohio Tax Credit Authority granted Hikma Pharmaceuticals a 1.8% and 15-year job creation tax credit for the project.
The AAA Club Alliance, the roadside assistance company, plans to create 250 jobs generating $18.75 million in new annual payroll by the end of 2031. The generation would come from projects in Cincinnati and Worthington.
The Ohio Tax Credit Authority granted AAA Club Alliance Inc. a 1.6% and nine-year job creation tax credit for the project.
Business and consumer issues reporter Samantha Hendrickson can be reached at shendrickson@dispatch.com
This article originally appeared on The Columbus Dispatch: Ohio OKs last data center sales tax break before DeWine’s pause begins
Reporting by Samantha Hendrickson, Columbus Dispatch / The Columbus Dispatch
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