Last Update: 06/03/2026 at 6:25 AM EST

Mid-day Briefing: Data Centers

Saturday, May 23, 2026 · 11:48 AM EDT

Key developments

THE VINDICATOR

Ohio data-center tax exemption costs explode

The Vindicator reported that Ohio's data-center sales-tax exemption cost $554.9 million in 2024 and $1.5687 billion in 2025, far above earlier forecasts. Local sales-tax losses added another $166.8 million in 2024. The figures arrive after Gov. Mike DeWine vetoed a repeal and lawmakers created a special committee to examine the forecast gap and the industry's tax treatment.

Why it matters

The new actual-cost data could force Ohio to revisit one of its biggest tech incentives and reshape budget planning.

Sources & driving stories

TIMES OF SAN DIEGO

California water disclosure bills move ahead

Times of San Diego reported that Assemblymember Diane Papan's data-center water bills cleared a key legislative chokepoint this week. One bill would require operators to disclose estimated or actual water use to water suppliers and local governments, while the other would block approvals unless developers disclose water plans and avoid overdrafted basins without state approval. The push follows a Newsom veto of an earlier reporting bill and a new Next10/Santa Clara University study finding sparse public data on cooling systems and water sources.

Why it matters

If enacted, the bills would make water transparency a prerequisite for new data-center growth in California.

Sources & driving stories

TIMES OF SAN DIEGO · Rachel Becker

Times of San Diego coverage
SPECTRUM NEWS 1 OHIO

Cleveland weighs data-center permit moratorium

Spectrum News 1 Ohio reported that Cleveland is considering a one-year moratorium on data-center permits while it rewrites zoning rules. The proposal comes as city officials review Lakeland Equity Group's planned $1.6 billion project in Slavic Village, after Cleveland rejected the construction permit as incomplete. Residents want clearer standards on noise, utility bills, water pressure, and light pollution before more projects move ahead.

Why it matters

A moratorium would be a concrete sign that local governments are tightening control over data-center siting.

Sources & driving stories

SPECTRUM NEWS 1 OHIO

Spectrum News 1 Ohio coverage

Worth noting

WORTH NOTING

Stratos critics face CCP accusations

Kevin O'Leary's attack adds a new political flashpoint to the Utah project as state and county reviews, ballot efforts, and protests continue.

WORTH NOTING

SpaceX filing spotlights AI compute assets

The filing gives investors a fresh view of SpaceX's data-center footprint, including Memphis holdings and a planned Mississippi hyperscale center.

WORTH NOTING

Data centers hit 6% U.S. electricity

A new report underscores how quickly power demand is becoming a sector-wide constraint and a political issue.

Still unclear

OPEN QUESTION

Can Ohio cap the exemption?

The cost shock and committee review create pressure for action, but repeal or override still faces political and contractual hurdles.

OPEN QUESTION

Will California bills yield usable data?

The proposals matter only if they survive industry opposition and produce standardized reporting that local communities can actually access.