Key developments
Ohio pauses new data center incentives
Gov. Mike DeWine said Ohio is pausing new applicants for its data center sales tax exemption while lawmakers study the industry's impacts. State reporting put the exemption's cost at about $554 million in fiscal 2024 and nearly $1.6 billion in 2025, far above earlier projections near $136 million and $142 million. The move comes as a joint legislative committee reviews the sector and activists push a ballot drive that could permanently ban hyperscale data centers.
Why it matters
Ohio is one of the largest U.S. data center markets, so the pause could slow projects and force a broader incentive reset.
Sources & driving stories
SPECTRUM NEWS 1 OHIO
Spectrum News 1 Ohio coverageNEWSDAY
Newsday coverageShapiro ties incentives to GRID certification
Pennsylvania Gov. Josh Shapiro unveiled GRID standards for data center developers and proposed legislation to make state tax benefits contingent on certification. Projects would need to secure or bring enough electric capacity for their load, submit community outreach plans, and meet transparency, workforce, ratepayer, and environmental requirements. Shapiro said the framework would improve permitting speed and certainty, while the Data Center Coalition warned it could add complexity.
Why it matters
Pennsylvania is shifting from open-ended growth to a conditional incentive model that could shape how future projects are approved.
Sources & driving stories
ROUTE FIFTY · Justin Sweitzer
Route Fifty coverageTVA weighs AI data center rate class
The Tennessee Valley Authority is considering a rate-classification change for AI data centers and could take the proposal to its board as soon as August. TVA says AI data centers now account for about 18% of its industrial load, up from single digits over the past five years, and that share could double by 2030. The utility says the goal is to avoid shifting costs to residential and other rate classes, while 99% of data-center load in its territory is served by local power companies.
Why it matters
A new rate class could materially change power costs and siting economics for data centers across the Tennessee Valley.
Sources & driving stories
WPSD LOCAL 6
WPSD Local 6 coverageWorth noting
WORTH NOTING
Local moratoria keep spreading
Brookhaven, Sayreville, and La Pine each moved toward blocking or pausing projects this week, showing local resistance is becoming a zoning issue across multiple states.
WORTH NOTING
Blackstone and Google form TPU venture
The companies announced a U.S. compute-as-a-service joint venture with $5 billion in initial equity and a first 500 MW target for 2027, signaling continued large-scale investment in AI infrastructure.
Still unclear
OPEN QUESTION
Does Ohio turn the pause into a permanent rewrite?
The legislative study, budget overruns, and ballot drive could force Ohio to replace its current exemption with a stricter statewide regime.
OPEN QUESTION
Will Pennsylvania codify GRID before projects lock in?
If the standards become law, they could become the template for how major data center markets trade incentives for capacity, transparency, and community safeguards.