Econsult Solutions, Inc. (ESI) was retained by a coalition of data center developers and suppliers to analyze the potential growth of the industry in Pennsylvania if a full data center sales and use tax exemption existed, similar to what is available in more than 20 other states. Tax incentives have been cited as a driving factor in recent data center location decisions, but Pennsylvania has fallen behind. Since 2008, the state’s share of national data center industry employment has shrunk from 3.8% to 2.8%.
The ESI analyses indicates that by 2024, Pennsylvania would gain the following if a full data center sales and use tax exemption existed:
This expansion of data centers in Pennsylvania would also have additional community and economic impacts, including: