Does Pennsylvania give tax breaks to data centers?

Pennsylvania exempts data centers from some, though not all taxes.

Since 2022, data centers who commit to creating at least 25 jobs and investing at least $75 million (more for large cities) do not have to pay the state’s 6% “sales and use” tax on certain types of computer equipment. They must also pay at least $1 million in wages annually. Data centers are not exempted from property taxes under the program. 

Covered equipment includes core infrastructure such as routers and storage systems. Personal devices like laptops that employees use for office work are not.

The program has attracted billions in investment, including $20 billion by Amazon. However, since 2024, Pennsylvania has lost an estimated $155.9 million in revenue and is projected to forego $1.74 billion more by 2031.

Gov. Shapiro recently proposed new eligibility requirements for the tax breaks, including bringing in additional electricity to offset increased utility costs.