Data centres become a midterm issue as 65% of Ohio voters oppose tax breaks and candidates call for bans
From Ohio to Maryland, Pennsylvania and Oregon, opposition to data centre projects and their incentives is shaping campaigns and local budgets.
Data centres have taken centre stage in Ohio’s elections1. The state has been a Republican stronghold for a decade, but as it emerges as a data centre hot spot, the unpopular projects have become a political issue1. A poll by Ohio Northern University found that 65% of Ohioans oppose tax breaks for data centre developments, 43% strongly, while only 15% support them2. Opponents of the incentives outnumber supporters by more than four to one2.
The backlash is set to sway the midterm elections more widely3. Critics have attacked the tax breaks used to entice data centre developers, and have called out local officials for negotiating deals behind closed doors3.
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Why it matters to investors
Candidates are now proposing outright limits. In Maryland, Republican candidate for governor Dan Cox called for a permanent ban on hyperscale data centres and said he would order a statewide moratorium4. Wes Moore says local governments should decide4.
In Pennsylvania, Democrats say that with control of the legislature and the governorship they would pass energy reforms and rein in data centres5. Stiff public opposition there has given rise to calls for a moratorium on new data centre construction5.
Where bans are already in place, the costs are showing up in local budgets. Oregon’s rural leaders say they were blindsided by Governor Tina Kotek’s moratorium, which counties and cities say could cost them millions6. The city of Umatilla has declared a state of emergency over lost data centre revenue amid the statewide ban; it had been relying on tax revenue due from Sabey and Amazon7. Hillsboro is moving in a different direction from the rest of the state6.
What to watch
For developers and the companies that fund them, the risk is that political opposition slows approvals or removes incentives in states that had been courting projects2,3. The Ohio poll suggests that tax breaks, rather than the facilities alone, are a central point of resistance1,2.
The Oregon experience shows the other side of the trade-off: towns that counted on data centre tax revenue lose it when projects stop6,7. Results in Ohio, Maryland and Pennsylvania will show whether candidates who campaign against data centres turn that stance into policy1,4,5.
Sources
- Data centers take center stage in Ohio elections - Axios Columbus, axios.com (2026-10-22)
- Ohioans strongly oppose data center expansion and tax breaks - Ohio Northern University, onu.edu (2026-10-22)
- Data center backlash set to sway midterm elections | Psa | idahostatejournal.com, idahostatejournal.com (2026-10-23)
- In Frederick visit, Cox calls for permanent ban on hyperscale data centers in Maryland, baltimoresun.com (2026-10-23)
- With a trifecta, Pennsylvania Democrats would pass energy reforms and rein in data centers, alleghenyfront.org (2026-10-22)
- Oregon counties, cities say data center moratorium could cost them millions - OPB, opb.org (2026-10-22)
- Oregon city declares state of emergency over lost data center revenue amid state-wide ban, datacenterdynamics.com (2026-10-23)
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