Federal News
Ohio Senator Criticizes Data Center Tax Break
March 18, 2026
Senator Bernie Moreno publicly challenges the $4.5 million Ohio state sales tax exemption awarded to The Carlyle Group for its $136 million data center expansion in Akron and Independence, Ohio. The project is expected to create only ten jobs, prompting concerns about the fairness and economic impact of the subsidy. Senator Moreno urges the company to relinquish the tax break, adopt the Ratepayer Protection Pledge, and increase job creation to ensure accountability and equitable economic development.
- This highlights increased scrutiny of state-level tax incentives for large private equity-backed infrastructure projects, signaling potential shifts in subsidy policies.
- Procurement professionals should note the political and public pressure on economic development incentives tied to job creation metrics.
- Contractors and vendors involved in data center expansions may face evolving requirements for demonstrating local economic benefits.
- Organizations should evaluate the implications of such critiques on future state tax credit awards and subsidy negotiations in Ohio and similar jurisdictions.
So why are hardworking Ohio taxpayers being asked to subsidize a project that creates so few jobs while a global private equity powerhouse gets a free ride? Itโs unfair, itโs unnecessary, and itโs time to call it what it is: a bad deal for the people of Ohio.
— Bernie Moreno, United States Senator
Agencies
Ohio Tax Credit Authority, Ohio Department of Development, United States Senate
Vendors
The Carlyle Group, Ark Data Centers
Contracts
$4.5 million