The State of Ohio this week announced plans to give a tax break worth more than $4.5 million to a data center expansion in both Akron and Independence.
The approval comes as State House Republicans are seeking to eliminate the state tax break for data centers entirely; tax breaks for data centers amounted to $127 million in lost state revenue last year.
The 10-year break on taxes, approved Monday by the Ohio Tax Credit Authority, was awarded to ark data centers, which already has two projects in Akron. In exchange for the tax break, the company is expected to add 10 jobs that generate $1.1 million in new payroll annually. The company will also invest $136 million in the two locations.
Steve Millard, the president and CEO of the Greater Akron Chamber, said the agreement came as a previous tax credit was expiring. The company, in a statement, said in addition to the 10 new jobs, the company will keep 27 existing jobs locally.
The chamber wrote a letter of support for the 50% tax credit. As part of the agreement, ark must maintain operations at both the Akron and Independence sites for at least 13 years. The company’s investment, and its hiring, must be completed by the end of 2028.
Suggested Reading
Ohio was competing with Illinois and Indiana for the project, the state said, and the tax credit helped ensure it would come here.
“I think we get limited opportunities to bring new investment here,” Millard said of the chamber’s support for the project. “We do have to be careful about the balance, but in this case, we felt like it’s a good fit.”
In a statement, ark CEO Bruce Lehrman said the investment reflects confidence in Ohio and increased demand for data centers.
“Northeast Ohio offers the ideal combination of reliable infrastructure, a skilled workforce, and a forward-thinking business environment that aligns with our long-term growth strategy,” Lehrman said.
“We are proud to support some of the region’s largest healthcare, manufacturing, and technology organizations, and this expansion will deepen our ability to meet their evolving needs.”
The Akron ark site is at 191 E. Miller Ave. Millard said the existing data center is a shared hosting facility and “not a super-sized data center.” The state information says ark is an IT service provider and consulting firm that helps organize, plan, manage and execute IT strategies.
Where are data centers in Akron and Summit County?
There are currently seven data centers operating in Summit County and more than 200 in the state. Five of those seven are in Akron. There are two existing ark facilities in the city, both at the same address, at what used to be Involta, before a rebrand.
Together, the two Akron ark data centers total more than 52,000 square feet, according to the company’s website, and offer colocation services, or shared spaces for businesses that outsource their IT operations. Each facility contains 300 racks for private or shared colocation.
The Independence facility is at 7300 E. Pleasant Valley Road.
Millard said FirstEnergy had affirmed it has the power to run the Akron center in its existing capacity. While ark does use liquid cooling, Millard said he didn’t think the amount of use would be detrimental to the region’s water supply.
The company will use the tax break on sales and use taxes for data center equipment at each site, according to information from the Ohio Tax Credit Authority.
“It’s an investment that we’re making,” Millard said. “It’s a positive investment for the region.”
