Midwest and East Coast States Pause Data Center Incentives

Government officials across the U.S. Midwest and East Coast are implementing pauses or considering moratoriums on data center development to address infrastructure and financial concerns. In Ohio, Governor Mike DeWine suspended a critical tax break for new applicants, as costs for construction and equipment exemptions skyrocketed from a projected $142 million to nearly $1.6 billion. The state also formed a legislative committee to study the economic and environmental impacts of these facilities.

In Pennsylvania, Treasurer and gubernatorial candidate Stacy Garrity called for a statewide pause to update zoning laws and protect ratepayers. She criticized Governor Josh Shapiro's $20 billion deal with Amazon Web Services, though Shapiro's campaign defended the Governor's record by citing the new Governor’s Responsible Infrastructure Development (GRID) standards.

Meanwhile, officials in Wisconsin are targeting local restrictions. Brown County's Planning, Development and Transportation Committee is reviewing a proposal by Supervisor Christopher Welch to bar data centers from purchasing land until state regulations are established. This follows similar actions in Madison and Manitowoc counties. The push is fueled by a Wisconsin Legislative Audit Bureau report showing the state will forego $1.5 billion in initial construction sales tax for projects involving companies such as Microsoft, OpenAI, and Meta.