AMZN, META, GOOGL Might Lose Billions As Ohio State Reconsiders Data Center Tax Breaks, Says Report

• Ohio’s data center sales-tax exemption topped $1.5 billion in 2025, more than 10 times the state’s original estimate, according to a report in the WSJ.
• Lawmakers are pushing for new data-center taxes and higher contributions toward power and electrical infrastructure.
• Amazon has invested nearly $40 billion in Ohio data centers since 2015, while Meta has invested more than $2.3 billion since 2018.

More than 10 states are reportedly reconsidering or pausing tax breaks for data centers as the artificial-intelligence boom drives up the cost of sales-tax exemptions and fuels concerns over power and water consumption.

Ohio, which became a major data center destination after offering tax incentives more than a decade ago, is now considering changes that could affect companies including Amazon.com (AMZN), Meta Platforms (META) and Alphabet Inc.’s (GOOGL) Google, The Wall Street Journal reported.

At the time of writing, in after-hours trading on Wednesday, AMZN shares were up 0.02%, while GOOGL stock gained 0.07%. Meanwhile, META shares were down 0.4%.

Ohio Reconsiders Data Center Tax Breaks

Over a decade ago, Ohio lawmakers exempted tech companies from sales taxes on computer servers and other equipment needed for data centers, betting that the incentives would attract much-needed investment to the state.

The policy helped turn Ohio into one of the leading destinations for data centers. But the artificial-intelligence boom pushed the value of the tax exemption to more than $1.5 billion in 2025, more than 10 times the state’s original estimate, stated the WSJ report. In May, after a news outlet reported the scale of the tax break, public backlash led Republican Gov. Mike DeWine to pause new applications for the exemption.

Lawmakers Push To Rework Tax Deals

Some state lawmakers, including Democratic Rep. Tristan Rader, now want to repeal the exemption and renegotiate past deals with companies such as Amazon, Meta and Google that secured exemptions for decades by signing contracts with the state. In several states, exemptions for tech giants have exceeded $1 billion annually.

“They seem to have more money than God, and they’re able to build without the need for these types of incentives,” Rader told WSJ. He is reportedly proposing new data-center taxes and requirements that developers pay more for power and electrical infrastructure.

AMZN, META Point To Billions Invested In Ohio

Amazon said it has invested nearly $40 billion in Ohio data centers since 2015, creating thousands of jobs and paying almost $11 million in state property taxes and fees last year. Meta has invested more than $2.3 billion in Ohio data centers since 2018 and paid over $40 million in property taxes and fees during that period.

The pushback against data center tax breaks is also spreading across the country, with lawmakers or governors in more than 10 states moving to limit or pause the incentives.

Data Center Economics Under Pressure

The assault on tax provisions is the latest example of the nationwide rebellion against AI amid concerns over power and water consumption, a dynamic that candidates are watching closely ahead of November’s elections.

President Donald Trump has urged voters to welcome data centers despite recent polls showing Americans overwhelmingly don’t want the facilities near them.

AMZN, META, GOOGL: Stocktwits Retail Sentiment

On Stocktwits, retail sentiment for AMZN and GOOGL was ‘bearish,’ while sentiment for META was ‘neutral.’ Message volume for all three stocks was ‘normal’ at the time of writing.

AMZN stock has gained nearly 9% year-to-date, while GOOGL shares are up more than 6%. META shares, meanwhile, have declined 0.66% over the same period.

Also See: AMZN And Wiwynn Are Scaling Up In Texas — What’s Behind The $1.6B Investment? 

For updates and corrections, email newsroom[at]stocktwits[dot]com.