Ohioans are footing the bill to subsidize Big Tech Data Centers at huge economic and environmental cost
A new report from Innovation Ohio finds that major technology companies are dramatically increasing electricity demand in Ohio while taxpayers and ratepayers shoulder the costs.
The report, “Data Centers, Ohio’s Electric Grid, and Your Power Bill,” documents how tax breaks and energy demand from data centers operated by companies like Google, Amazon, and Meta Platforms are driving new pressure on the state’s electric grid and shifting costs onto Ohio households.
Large data centers operate thousands of servers around the clock and can use as much electricity as entire cities. Yet the report finds Ohio continues to subsidize the industry through tax breaks that now cost $140 million per year, even as infrastructure upgrades and higher electricity demand push up energy prices for residents.
“Some of the richest companies in the world are using Ohio’s electric grid like an unlimited power outlet while taxpayers pick up the tab,” said Michael McGovern, President of Innovation Ohio. “We are literally paying companies to plug massive electricity demands into our grid, then asking families to cover the cost. That’s a bad deal for Ohio taxpayers.”
The report highlights a recent example where the state provided $4.5 million in tax incentives for a project expected to create only ten permanent jobs, raising questions about whether the public benefits justify the cost.
“We shouldn’t be subsidizing companies that use huge amounts of electricity while sending profits back to Silicon Valley,” McGovern said. “If these companies want to build data centers here, they should pay their fair share and provide their own power instead of relying on Ohio households to pay for their growth.”
Innovation Ohio’s report outlines several policy options states are considering, including eliminating tax subsidies, preventing cost shifting to residential ratepayers, and requiring large data centers to generate their own power.
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Innovation Ohio is a diverse nonprofit organization working to improve everyday life for Ohio workers and families, create opportunities for all Ohioans, and strengthen Ohioan communities from the bottom up. Through polling, messaging campaigns, and coalition building, they are a catalyst for progressive policy and grassroots activity.
