Ohio Hits Pause on Data Center Tax Breaks After Farmer Pushback

Ohio Farm Bureau’s Evan Callicoat discusses data center expansion in the state, producers’ land and resource concerns, and debates over tax exemptions and rural development.

COLUMBUS, OHIO (RFD NEWS) — The rapid expansion of data centers across Ohio is drawing increased attention from agricultural groups as rural communities weigh both the economic opportunities and resource pressures tied to development.

Evan Callicoat with the Ohio Farm Bureau joined us on Friday’s Market Day Report to discuss how quickly data center growth is occurring in the state and what that expansion means for farmers and rural residents.

In his interview with RFD News, Callicoat outlined the current pace of development and the uncertainty surrounding exact facility counts, noting that Ohio now ranks among the leading states for data center concentration.

According to Callicoat, data center development has been swift in Ohio, which recently ranked fifth in the country with between 200 and 250 sites across the state.

“Honestly, that concerns our members the most, and as you kind of covered at first, transparency there as well,” Callicoat told RFD News. “If we’re going to be locating these here, we want to make sure we know what is coming to our local communities. It’s having an impact across the state. No matter where you live in Ohio, you are having data center conversations in your local community.”

He also addressed specific concerns among producers regarding land use, water demand, and electricity needs as more projects move into rural areas.

“I think there are a few different concerns that our members have,” he continued. “Land use — the amount of land that’s being taken for these projects. Water use has really ramped up in the last couple of weeks, especially talking about water quality concerns and water quantity. That’s not really a conversation we’ve had in Ohio before. Electricity demand and prices are also a concern. A lot of these things take a lot of power. We want to make sure they’re not straining the grid and causing higher prices for our members as well. And definitely coming across the headlines in the last couple of weeks is the tax impact. They’ve been receiving about $2 billion in sales tax exemptions, and that is a lot over the projections that they had. That was something we were concerned about, and we were glad to see that it was paused for now.”

In addition, Callicoat discussed the state’s recent decision to pause consideration of new data center tax exemption requests and the broader balance between economic development opportunities and resource pressures tied to continued growth.

“This tax exemption on data centers was on the sales tax for materials used to build them. When it was first created around 2013, projections were maybe tens of millions of dollars,” he said. “But we saw that just in 2024 and 2025 alone, there was over $2 billion in exemptions that we did not previously know they were receiving. So the legislature has been studying the issue and decided to pause any new requests at this time as they continue that review.”

Finally, Callicoat reflected on the role Ohio Farm Bureau members played in raising awareness of the issue among state lawmakers and officials.

“We really believe this came from the impact of our members making their voices heard — thousands of members contacted legislators and the governor’s office,” he explained. “It really shows the power of a grassroots organization when members make their voices heard. It can have a statewide impact.”

Related Stories
The question of whether a traditional, multi-year Farm Bill is a constitutional necessity or merely an outdated artifact of legislative compromise — as opposed to a model of targeted reconciliation and ad hoc assistance — is one of the most critical debates in current agricultural policy.
New farm payment rules allow LLC members to have separate limits, but some local FSA offices are still applying outdated policies, creating confusion for producers.
Farmers still earn only a small share of consumer food spending, even as post-farm costs continue to take most of the dollar.
Just like cows, kids experience ups and downs—from small frustrations to unexpected moments—but there is still good in every day.
Dr. Jeffrey Gold joins us on Rural Health Matters to discuss rural mental health awareness, the importance of reducing stigma in agriculture, and resources available to farmers, ranchers, and rural families seeking support.
Utah Senator John Curtis joins us for “Champions of Rural America” to discuss new legislation to improve forest management and wildfire prevention and its broader implications for rural communities and infrastructure.

Marion is a digital content manager for RFD News and FarmHER + RanchHER. She started working for Rural Media Group in May 2022, bringing a decade of digital experience in broadcast media and some cooking experience to the team.

LATEST STORIES BY THIS AUTHOR:

Fertilizer relief may be limited despite the reopening of the Strait of Hormuz this week. AgriSompo’s Brooks York discusses marketing strategies, crop insurance considerations, and other tips for producers navigating volatility this planting season.
Overall, the report suggests a shift toward more comfortable supply levels, with demand emerging as a key factor to watch in the months ahead.
Dr. Jeffrey Gold with the University of Nebraska joined us to explain public health in rural communities and highlight resources residents can access to stay healthy
ASFMRA’s Howard Halderman gives an update on Corn Belt farmland values, buyer activity, and what to expect for the rest of 2026 as geopolitical tensions and bridge payments move
Farmers this year will finally be able to update their base acres with the USDA, something that experts warn must be done with complete accuracy.
Fewer interruptions could translate to improved efficiency—and fewer costly delays when timing matters most.
Agriculture Shows
Hosted by Scott “The Cow Guy” Shellady and RFD News Markets Specialist Tony St. James, Commodity Talk delivers expert insight into the day’s ag commodity markets just before the CME opens. Only on RFD-TV and Rural Radio SiriusXM Channel 147.
A look at the news, weather and commodities headlines that drove agriculture markets in the past week.
Everything profits from prairie. Soil, air, water — and all kinds of life! Learn how you can improve your land with prairie restoration, cover crops and prairie strips, while growing your bottom line.
From soil to harvest. Top Crop is an all-new series about four of the best farmers in the world—Dan Luepkes, of Oregan, Illinois; Cory Atley, of Cedarville, Ohio; Shelby Fite, of Jackson Center, Ohio; Russell Hedrick, of Hickory, North Carolina—reveals what it takes for them to make a profitable crop. It all starts with good soil, patience, and a strong planter setup.