2026 Legislative Session Dates
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Key Takeaways:

  • Ohio Governor DeWine has paused new data center tax exemption requests while a legislative committee studies the industry's impact on energy, the environment, and local communities. The pause raises questions about how Ohio will stay competitive with other states that still offer tax incentives for technology investment.
  • Until recently, governors across the country have mostly played a moderating role on state data center policy, with several vetoing bills that would have imposed new restrictions or fees on the industry. The actions by Ohio and Utah suggest that posture may be shifting.
  • Utah Governor Cox issued an executive order establishing a new framework for data center development, directing state agencies to weigh water use, air quality, wildlife impacts, and ratepayer protections alongside economic growth. The order comes as Utah is already navigating a high-profile dispute over a large proposed data center project.
  • Not all governors are moving in the same direction. New York's governor has signaled opposition to a statewide data center moratorium, suggesting that gubernatorial attitudes on this issue vary considerably by state.
  • Virginia offers a useful contrast, where lawmakers passed a wave of data center bills this session even as tax exemption debates continued, showing that some states are still actively courting the industry.


Last week, Ohio Governor Mike DeWine (R) announced that the state would pause consideration of any new data center tax exemption requests. In the same week, Utah Governor Spencer Cox (R) released an Executive Order outlining his data center framework, which will establish new restrictions on data center construction and operations. Typically, governors have taken a moderating approach to data center policy. The trend isn’t universal, as New York Governor Kathy Hochul (D) has signaled that she does not support the moratorium making its way through the legislature. This week, we’re diving into gubernatorial attitudes on data centers, and whether the tide is turning.

Ohio Pauses Data Center Tax Exemptions Amid Legislative Review

Ohio Governor DeWine has directed the chair of the Tax Credit Authority to stop considering new tax exemption requests in Ohio while the legislature studies the impact of data centers.

Tax Credit Authority Continues Processing Existing Applications

The Tax Credit Authority did approve two new tax credits for data center projects in the days following, but they were projects which were already under consideration. In his Executive Order, Governor DeWine seemed to stress that he’s not taking an anti-data center stance, saying: “Data centers are a critical component to today's technology-driven economy, which depends on the virtual, large-scale exchange of information. [...] Data centers that have previously been granted sales and use tax benefits in Ohio have reported a total capital investment of $27.2 billion in 2025.”

But with the availability of tax credits for technology investment in other states, it’s difficult to see how Ohio will remain competitive with other states during the suspension.

Legislative Committee Examines Data Center Impacts

The Committee that the Governor mentioned as studying the impacts of data centers is tasked with identifying specific state and local community impacts, determining environmental and energy rate impacts, and understanding the role of data centers in public safety and national security (see Mission Statement in this link). Committee leadership noted that they want to be a model for the nation and will develop best practices. The third meeting is scheduled for June 4th at 10 AM and will have taken place by the time this newsletter is published.

Utah Establishes New Framework for Data Center Development

Utah is currently in the middle of a debate regarding a nationally recognized data center project. Most recently, Senate President Adams publicly demanded a major reduction in the project size. At the same time, Governor Cox released his Executive Order titled “Establishing a Higher Bar for Data Center Development in Utah.” He reiterates that Utah is committed to “advancing both economic strength and environmental stewardship,” and directs agencies to adhere to the newly released framework.

Eight Principles Guide Utah Data Center Policy

The framework consists of eight principles:

  • Protect the Great Salt Lake and other water resources across the state by ensuring that water consumption is not increased and that water quality is protected;
  • Protect air quality and airsheds across the state, including not impacting existing non-attainment areas;
  • Promote economic and job growth in rural Utah;
  • Mitigate wildlife impacts;
  • Protect utility ratepayers;
  • Ensure opportunities to expand energy generation and transmission capacity are consistent with the other principles of this Framework;
  • Lead on pro-human AI development in Utah; and
  • Provide transparent, meaningful and thorough opportunities for public comment.

It’s unclear whether and how this EO will impact the data center industry in Utah in the short term.

Historical Context Shows Governors Previously Blocked Data Center Restrictions

Until recently, governors have largely played a moderating role on data center policy. Some notable vetoes from the last two years include:

  • Vermont Governor Scott (R) vetoed H 727, which would have imposed ratepayer protection provisions and an energy transformation fee, and required agencies to develop new regulatory standards.
  • New Jersey Governor Murphy (D) pocket vetoed A 5462, which would have imposed a tariff on large load customers.
  • California Governor Newsom (D) vetoed AB 93, which would have imposed strict reporting requirements on data center projects.
  • Maryland Governor Moore (D) vetoed SB 116, but was overridden by the legislature. The bill requires a study of environmental, energy, and economic impacts of data center development.

Both the Ohio and Utah actions suggest that may be changing, representing a new willingness among governors to wade into the data center debate on the side of heightened restrictions, even if neither action is as sweeping as headlines may suggest.

Track State Data Center Policy

Last year, states considered hundreds of data center bills, and we expect activity to continue growing in 2026. To stay on top of this rapidly evolving landscape, we've launched MultiState Policy Watch: Data Centers – a subscription featuring legislative analysis, trend summaries, and expert insights across energy, tax, water, zoning, and other policy areas impacting data centers. Sign up here.