This legislation would repeal the Sales and Use Tax Exemption for data centers.
 
In 2021, a tax exemption for equipment purchased by data center was enacted as part of the Tax Reform Code to attract data center developers to Pennsylvania.  As of January 2026, there are dozens of active data centers in Pennsylvania and many more in development.  Given the rapid growth of data centers in the state, it is clear this tax exemption has served its purpose and is no longer needed.  Since 23-24 FY, the Commonwealth has forgone over $80 million in revenue due to this tax exemption. By 2030, if this tax exemption remains, the Commonwealth could forego up to another $235 million.
 
Additionally, data centers consume enormous amounts of electricity causing consumer electricity prices to rise. They can consume large quantities of water, potentially affecting local water supplies. The increasing proximity of data centers to residential communities is also affecting quality of life.
 
Data Centers do not need this tax exemption. For example, in 2024, Amazon’s net income was $59 billion and Microsoft’s net income was $88 billion.
 
Please join me as a co-sponsor of this important legislation.