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Ohio Data Center Incentives Become Issue in Rural Midterm Races

Ohio residents and political candidates are debating data center tax incentives and utility impacts ahead of a November 3 ballot measure in Defiance.

Published September 19, 2026 at 6:05 AM EDT

The short answer

Ohio residents and political candidates are debating data center tax incentives and utility impacts ahead of a November 3 ballot measure in Defiance. Community activists in Defiance, Ohio, are seeking a November 3 ballot measure to ban all but the smallest data centers as public concern over artificial intelligence (AI) infrastructure grows.

Ohio Data Center Incentives Become Issue in Rural Midterm Races

The Facts

Who
U.S. Rep. Marcy Kaptur (D-OH), Derek Merrin (R), Jon Husted (R), Sherrod Brown (D), Gov. Mike DeWine (R), and community activists.
What
A political and community backlash against data center construction and tax incentives in rural Ohio.
When
September 2026, ahead of a November 3 vote.
Where
Defiance and various rural areas across Ohio.
Why
Concerns over $2 billion in lost tax revenue, rising electricity costs, and the impact of AI infrastructure on water and farmland.

Community activists in Defiance, Ohio, are seeking a November 3 ballot measure to ban all but the smallest data centers as public concern over artificial intelligence (AI) infrastructure grows. The movement follows the release of state records showing Ohio forewent more than $2 billion in sales-tax revenue through incentives for companies like Amazon and Meta in 2024 and 2025.

The backlash has become a focal point in several Ohio political races. U.S. Representative Marcy Kaptur (D-OH) is campaigning against Republican opponent Derek Merrin by citing the costs of data-center utility demands. In the U.S. Senate race, Democratic former Senator Sherrod Brown has criticized Republican Jon Husted for supporting tax breaks for the industry. Meanwhile, Republican Governor Mike DeWine has suspended new applications for data center tax exemptions until state lawmakers can implement reforms.

Utility provider FirstEnergy reported that residential electricity bills in Defiance rose 10% to 15% in June compared to the previous year. According to an August 31 poll from Bowling Green State University, 71% of Ohioans support a temporary ban on new data center construction. Tech companies have defended their presence, with Amazon reporting nearly $40 billion in Ohio investments since 2015 and Meta reporting $2.3 billion since 2018.

A person living in rural Ohio may notice impacts on their household budget and local environment. Beyond the rise in monthly utility bills, residents are expressing concern over the conversion of productive soybean fields and the increased demand on water systems required to cool massive server farms. The outcome of the November 3 vote in Defiance and a proposed 2027 state constitutional amendment would set a precedent for how much local control residents have over high-demand industrial projects.

The political consequences extend to the balance of power in the U.S. Congress, as candidates in Ohio’s competitive districts use the data center issue to appeal to rural voters. If successful, the local and statewide bans would force tech companies to renegotiate how they fund power generation and transmission. The next major developments include the Defiance ballot measure on November 3, 2026, and the potential for a constitutional amendment to reach voters in 2027. State legislative reforms regarding tax exemption applications also remain pending following the summer recess.

Timeline of what happened

Key dates and decisions, in the order they occurred.

  1. 2024

    Ohio begins two-year period of $2 billion in foregone sales-tax revenue

  2. February 24, 2026

    Rep. Marcy Kaptur attends State of the Union address

  3. May 13, 2026

    Construction continues on Meta data center in Middleton Township

  4. June 2026

    Defiance residential electricity bills rise 10% to 15% year-over-year

  5. August 31, 2026

    Poll shows 71% of Ohioans back temporary ban on new data centers

  6. September 19, 2026

    Reuters reports on local and statewide data center political backlash

  7. November 3, 2026

    Defiance residents to vote on data center ban measure

  8. 2027

    Conserve Ohio seeks state constitutional amendment to limit power usage

Summaries are written by The Plain Record to state the facts of a story plainly and without political slant. Drafted with AI assistance and checked against the source record before publication. See how we report, or report a correction.

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Questions readers ask

What happened: Ohio Data Center Incentives Become Issue in Rural Midterm Races?

A political and community backlash against data center construction and tax incentives in rural Ohio.

Who is involved?

U.S. Rep. Marcy Kaptur (D-OH), Derek Merrin (R), Jon Husted (R), Sherrod Brown (D), Gov. Mike DeWine (R), and community activists.

When did this happen?

September 2026, ahead of a November 3 vote.

Where did this happen?

Defiance and various rural areas across Ohio.

Why does this matter?

Concerns over $2 billion in lost tax revenue, rising electricity costs, and the impact of AI infrastructure on water and farmland.