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 Purdue student team joins us to discuss how they developed Soy-Seal, their innovative soybean-based adhesive tape, and its potential ag impact.
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.
John Mays with Central Life Sciences joins us to discuss the importance of pest management ahead of wheat storage and how protecting grain quality can support stronger marketing opportunities.
University of Arkansas researchers are working to help farmers reduce grain waste and get more value out of their crops.

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:

Texas cowboy chef and host of RFD Network’s Twisted Skillet, Sean Koehler, shares an elote-style street corn dip just in time for Super Bowl Sunday. This skillet-cooked corn dish combines open-fire cooking and bold regional flavors for a delicious twist on Mexican Street Corn.
The USDA’s February WASDE report looms as the CME Ag Economy Barometer shows declining farmer confidence, and more ag industry groups calling for swift policy action.
San Angelo Stock Show & Rodeo Association’s Trenton Priddy preview this year’s event, which is now streaming on RFD+
Dr. Peter Beetham, interim CEO of Cibus, joined us to discuss the status of EU gene-editing deregulation and its potential implications for agriculture.
Danny Munch of the American Farm Bureau joined us to discuss USDA’s latest farm income forecast, revisions to prior estimates, and what the updated data means for farmers heading into 2026.
HHS Secretary Robert Kennedy calls on cattle producers to retain breeding cows while Ivomec receives emergency authorization to prevent New World screwworm.
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.