Three governors on May 27 announced actions and plans tied to data centers including a pause on consideration of any new data center tax exemption requests and requiring the reporting of energy and water use.
Ohio
In Ohio, Gov. Mike DeWine announced on May 27 that he has directed the chair of the Ohio Tax Credit Authority to pause consideration of any new data center tax exemption requests while the Ohio General Assembly's Joint Data Center Committee studies the growth of data centers in Ohio.
The Ohio Tax Credit Authority will stop accepting new data center tax exemption proposals after its currently scheduled meeting on Monday, where an existing data center tax exemption request will be considered, DeWine’s office noted.
This action only suspends the ability for data centers to request tax exemptions in Ohio. It is not a data center ban.
On May 13, Chairman of the Ohio House Energy Committee Adam Holmes and Chairman of the Senate Energy Committee Brian Chavez announced the launch of a joint legislative effort to study and discuss data centers in Ohio.
Holmes and Chavez hosted a press conference at the Ohio Statehouse to announce the Ohio Joint Data Center Committee.
“The committee will help to serve as a response to the rapid growth of data centers in Ohio and the many unanswered questions regarding their development,” a news release said.
“Key concerns include energy demand, the use of agricultural land, noise pollution, water use and disposal, and national security, among other important issues. According to some estimates, roughly 200 data centers are operating in Ohio, and additional facilities are being proposed,” the news release said.
New Jersey
Also on May 27, New Jersey Gov. Mikie Sherrill announced a statewide plan “to address the growing impact of data centers on energy demand, resource use, and local communities,” her office announced.
“As demand for data centers accelerates, the plan will establish strong guardrails to protect communities, strengthen transparency, ensure these facilities invest in New Jersey’s energy infrastructure, and deliver good-paying jobs,” Sherrill’s office said.
Sherrill’s office said that the plan includes four key pillars:
- Establishing fair-share rules to ensure data centers bring new clean energy online and contribute to the grid infrastructure needed to support their growth, shifting costs away from residents and ratepayers rather than to them.
- Improving transparency starting with requiring reporting on energy and water use “so the public has greater visibility into the impact of large-scale facilities.”
- Developing strong statewide standards for Community Benefits Agreements and providing state resources “to ensure municipalities can negotiate from positions of strength, ensuring data centers address impacts like light, noise, and pollution while making meaningful local investments.”
- Delivering good paying jobs by ensuring these centers leverage local trades and pay prevailing wages.
Pennsylvania
Pennsylvania Gov. Josh Shapiro on May 27 unveiled the full Governor's Responsible Infrastructure Development (GRID) Standards, “establishing clear guardrails and accountability standards for data center development in the Commonwealth of Pennsylvania.”
First introduced in the Governor’s 2026-27 budget address, the GRID Standards set expectations for developers seeking support from the Commonwealth -- including coordinated project support through the Commonwealth’s Office of Transformation and Opportunity (OTO), greater speed and certainty in permitting, and access to state tax incentives.
“Developed with input from local leaders, organized labor, industry, and environmental stakeholders, the GRID Standards outline specific steps data center developers must take to demonstrate that proposed projects provide real value to local communities, mitigate or offset any impacts on Pennsylvanians, and are being developed responsibly,” Shapiro’s office said in a news release.
The GRID Standards focus on four key areas:
- Protecting Energy Affordability
- Promoting Transparency and Community Engagement
- Supporting Workforce and Economic Development
- Strengthening Environmental Protection
The Shapiro Administration is rolling out a new local government toolkit through the Governor’s Center for Local Government Services (GCLGS) to help municipalities navigate data center proposals and make informed decisions that work best for their communities.
"As Pennsylvania communities increasingly receive inquiries about data center development, the toolkit will provide practical guidance for local officials on issues such as zoning, infrastructure capacity, resource use, fiscal impacts, and community benefits,” Shapiro’s office said.
Additionally, GRID certification “can serve as a clear standard to help local communities identify projects that have committed to protecting energy affordability, promoting transparency and community engagement, supporting workforce and economic development, and protecting the environment.”
