Alphabet Faces Potential Ohio Data Center Tax Shift

Alphabet's Google, along with Amazon and Meta Platforms, faces potential changes to lucrative data center incentives as Ohio lawmakers reconsider sales-tax exemptions, The Wall Street Journal reported. The state's sales-tax exemption on computer servers and equipment topped $1.5 billion in 2025, which was more than 10 times the original estimate.

In May, public backlash prompted Republican Governor Mike DeWine to pause new applications for the program. Now, lawmakers such as Democratic Representative Tristan Rader are pushing to repeal the exemption, renegotiate past contracts that secured decades of tax breaks, and introduce new taxes alongside higher contributions toward power and electrical grid infrastructure.

The pushback against artificial intelligence infrastructure is expanding nationally, with officials in more than 10 states reconsidering or pausing incentives due to mounting water and power demands. Amid the report, Alphabet shares edged up 0.07% in after-hours trading on Wednesday, bringing their year-to-date gain to more than 6%.