| Mike Abito |
Ohio State University |
Uncertain |
5 |
Needs to be studied. I'm not aware of recent and Ohio specific research. |
| Jonathan Andreas |
Bluffton University |
Uncertain |
5 |
It is effective if your goal is to bring in data centers because it is using public resources to pay them a tax subsidy to make it cheaper for them to build in Ohio. However, if your goal is to effectively benefit the economy of Ohio, it is completely uncertain if this is our best use of resources. If data centers are taking more local resources than they are giving back to the Ohio economy, then this would be counterproductive. I tend to be an optimist that it is possible for data centers to contribute to the Ohio economy, but I am not at all confident that we are actually implementing them in the most effective way. |
| Casey Boyd-Swan |
Kent State University |
Disagree |
9 |
Large operators pick sites based on reliable power, fiber-optic lines, land availability and condition, and nearness to existing clusters of data centers and available workforce. Local property tax abatement comes fairly low on that list. It also removes the main local benefit for communities who have a data center, since each facility creates few permanent jobs (the construction jobs created are temporary). |
| David Brasington |
University of Cincinnati |
Agree |
8 |
Yes, it can be an effective tool, but taxes are only one of many considerations a data center has when selecting a location. |
| Bolong Cao |
Ohio University |
Agree |
7 |
To prevent irresponsible data center building, the abatements should be revoked. |
| Joyce Chen |
Ohio State University |
Agree |
8 |
|
| Ron Cheung |
Oberlin College |
Strongly Agree |
8 |
|
| John Conzelmann |
Denison University |
Strongly Agree |
7 |
Incentives usually work. The consequence of the incentives working is a more interesting question here, I think. |
| Colin Davison |
University of Akron |
Agree |
8 |
|
| Kevin Egan |
University of Toledo |
Disagree |
8 |
It would be efficient to change the rules of the game and ban tax breaks (subsidies) for data center location (or any firm location). The key is for the local community to benefit from the extra tax revenue generated from the nearby data center (for example, to fund the local public school, or a new public park around the area) such that the majority of citizens approve of it so that they view their standard of living to have increased. |
| Ali Enami |
Kent State University |
Strongly Agree |
10 |
|
| Lucas Engelhardt |
Kent State University |
Strongly Disagree |
5 |
In general, evidence seems to be that tax abatements do very little to affect businesses' location choice. Abatements' main effect is lowering local and State tax revenue compared to if the abatements were not offered. In short: tax incentives are very rarely what tips a business's location choice. I have not seen any evidence that suggests data centers would be any different. |
| Erwin Erhardt |
University of Cincinnati |
Strongly Agree |
10 |
Tax abatements have proven over time to be highly effective in attracting new business to Ohio, and this will definitley be the case with new data centers. Such incentives can save tremendous costs to the company or industry seeking to install a data center. Ohio has used tax abatements vigorously over the decades to attract new business to the state. |
| Jonathan Ernest |
Case Western Reserve University |
Disagree |
9 |
Tax abatements can be successful in attracting data center development, but the limited increase in jobs/productivity is unlikely to fully replace the tax subsidy. |
| Kenneth Fah |
Ohio Dominican University |
Strongly Disagree |
9 |
|
| Vinnie Gajjala |
Tiffin Univeristy |
Disagree |
8 |
|
| Will Georgic |
Ohio Wesleyan University |
Agree |
7 |
Whether or not it is efficient for Ohio to pursue this goal of attracting new data center development, if that is indeed the goal then attracting new development with tax abatements would likely be highly effective, all else equal. |
| Bob Gitter |
Ohio Wesleyan University |
Agree |
8 |
If you mean do they attract the data centers, then yes. Tax breaks also signal that the community is willing to work with the data center. But as the data centers do not create many jobs, it is not an efficient use of encouraging employment. |
| PJ Glandon |
Kenyon College |
Agree |
8 |
Whether this is a good idea is less clear. |
| Alex Hollingsworth |
Ohio State University |
Uncertain |
9 |
The way this question is written is hard to answer. Often, businesses can compete with other localities by forcing these types of tax breaks to be put in place. If you really want to obtain a business that is going to get a tax break, you will need have a tax break to attract that business. But this is different than saying, "If you pass a tax break, will you be guaranteed to attract a data center?" That's the way the question is written. I'm not sure if that's the case. I think, conditional on a data center being interested in locating in your jurisdiction, a tax break could be effective. Whether or not this is a good idea is a separate question. |
| Faria Huq |
Lake Erie College |
Agree |
6 |
|
| Michael Jones |
University of Cincinnati |
Agree |
7 |
Property tax abatements are effective for building new data centers, but there is a larger question about whether Ohio should be subsidizing a specific industry - unless there is a strategic national interest or need to enhance critical infrastructure. |
| Evan Kresch |
Oberlin College |
Agree |
7 |
"effective", but not clear that the state should want to attract them. |
| Charles Kroncke |
Mount Saint Joseph University |
Agree |
3 |
Requiring data centers to produce their own electricity is a good idea, but tax incentives to attract data centers must end as well. |
| Bill LaFayette |
Regionomics |
Agree |
7 |
The developers doubtless love receiving them, but the real question is whether they are necessary or desirable. A large-scale data center consumes hundreds of acres of developable land that then becomes unavailable for anything else.They create many construction jobs but relatively few permanent jobs, especially in rural counties where the economic impact multipliers are low. Also, given the speed with which the technology is moving, massive data centers could become white elephants relatively soon, requiring millions in cleanup and redevelopment costs. |
| Kurt Lavetti |
Ohio State University |
Agree |
6 |
not a good idea, imo. but they are an effective tool |
| Sokchea Lim |
John Carroll University |
Uncertain |
7 |
These investments are highly cost-sensitive. Abatements would be an effective tool, but other factors including locations and regulations also play a role. |
| David Lindequist |
Miami University |
Strongly Disagree |
9 |
Because many communities across the country oppose data centers, Ohio may attract them without additional incentives. Tax abatements seem to only provide marginal incentives at best. |
| Trevon Logan |
Ohio State University |
Uncertain |
8 |
|
| Emily Marshall |
Denison University |
Agree |
7 |
|
| Joe Nowakowski |
Muskingum University |
Agree |
8 |
|
| Curtis Reynolds |
Kent State University |
Agree |
7 |
I think that they are effective for attracting the data centers. That does not mean that I think they are a good idea. Tax abatements become a race to the bottom and as communities fight for businesses. In the case of data centers, there will be little employment gains for the local community so the economic benefits of these tax abatements seem dodgy at best. |
| Thomas Sahajdack |
Kent State University |
Strongly Agree |
8 |
|
| Roman Sheremeta |
Case Western Reserve University |
Strongly Disagree |
7 |
Data centers locate where the power is, not where the abatement is. The evidence on tax incentives shows most go to firms that would have come anyway - and hyperscalers are building everywhere they can. Ohio's $2.3 billion mostly bought what it would have gotten for free. |
| Ejindu Ume |
Miami University |
Disagree |
8 |
|
| Rachel Wilson |
College Board |
Strongly Agree |
10 |
Effective doesn't mean it is smart to do it. Given how unpopular data centers are and the costs they add to the community and environment, plus the lack of long term jobs created, local governments should not be giving data centers tax abatements. If anything, the data centers should be sweetening the deal with community gifts etc. |
| Jonathan Wolff |
Miami University |
Agree |
9 |
|