Perry voters pass bond requirement for data center tax breaks

Residents of Perry, Ohio, voted to require data centers to secure bonds before receiving local tax incentives.

The village of Perry, which has a population of roughly 1,400 people, passed Issue 16 to ensure corporate accountability. This measure requires any data center company seeking a tax abatement or subsidy to take out a bond.

The bond serves as a financial guarantee that the company will deliver on its promises of future jobs and tax revenue, even if the artificial intelligence market fluctuates or the facility becomes obsolete. John Nicely and other local advocates pushed for this measure after a developer called the Province Group proposed a 230-acre data center.

The developer offered a 75 percent tax exemption for 15 years in exchange for a promise to pay over $320 million in taxes over 30 years. Residents expressed concern that the company might not follow through on these long-term commitments. The move comes as a broader national trend sees voters rejecting data center expansion. Across the country, Americans approved more than 40 measures to restrict or ban these facilities. Perry's approach differs by allowing development if companies provide a guarantee.

This policy aims to protect the town from being left with vacant land and no revenue if a project fails.