Canton Weighs $62.5M Payment Plan for New Data Centers
The city proposes 75% tax abatements for three data centers in exchange for guaranteed community payments over 30 years.
Updated on Oct. 28, 2026 in Data Centers
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The Canton City Council has held a second reading on a proposal to grant 75% property tax abatements for three new data centers. The facilities, which include two Amazon hyperscale centers and one DAMAC site, would generate $62.5 million for the city through direct payments over 30 years.
Why it matters
By swapping traditional property taxes for fixed benefit payments, the city aims to secure nearly six times the revenue compared to standard taxing mechanisms. This model impacts the funding streams available to the local school district and township, which stand to lose traditional property tax revenue.
The proposed tax abatement covers 75% of property taxes for the three sites over the next 30 years. This agreement replaces traditional tax inflows with a $62.5 million structured payment plan, though the total valuation of the developments remains publicly undisclosed.
The players
Amazon
A multinational technology conglomerate that provides cloud computing services and operates hyperscale data center infrastructure.
DAMAC
A private international development firm that constructs and operates large-scale infrastructure and data center facilities.
Canton City Council
The local legislative body responsible for municipal zoning and tax policy in Canton, Ohio.
The details
The city uses a community benefit agreement to capture revenue, which functions as a direct contract between developers and the local government. By granting the abatement, Canton shifts the developer obligation away from standard ad valorem taxes—taxes based on the assessed value of real estate—toward fixed, long-term infrastructure funding contributions. This structure provides the municipality with guaranteed payments rather than fluctuating tax receipts tied to facility assessment cycles.
Timeline
October 26, 2026: The City Council held the second reading for the proposed tax abatements.
November 2, 2026: City officials are expected to conduct the final vote on the tax abatement agreements.
The Tech Race
This deal mirrors the increasing prevalence of community benefit agreements used by cities to capture direct investment from data center operators. It highlights the competitive tension between securing long-term hyperscale projects and maintaining traditional property tax bases.
Residents should anticipate significant changes to local development patterns at the three designated sites, including the locations at Millerton Street and Trump Avenue. These projects will change local land use for the next three decades, as the city prioritizes high-capacity infrastructure over traditional property tax growth.
The takeaway
This development marks a significant shift in how Canton intends to fund municipal services by leveraging long-term, fixed payments from hyperscale operators. Readers should monitor the November 2, 2026, council vote to see if the proposal passes without further modification to the abatement terms.
What happens next
The Canton City Council is expected to vote on the approval of the tax abatements on November 2, 2026.
Further reading
Learn more about local infrastructure trends at Data Centers.
Source note: This article includes information reported by News-Talk 1480 WHBC.
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