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Effective Monday, March 16, 2020 and until further notice, Econsult Solutions is having staff members work from home. This form of “social distancing” has been implemented with the safety of our staff and the community at large in mind. We have instituted all necessary remote-working features and remain open for business, hard at work on current engagements and eager to hear how we can support your needs. 

These are extraordinary times. The global pandemic has reached every aspect of every life in every corner of the world. More than ever, ESI stands ready to apply economics, strategy, and insight to help you move forward. Be on the lookout for additional content on our blog, Present Value. Together we will emerge stronger and wiser. 

The Economic and Revenue Impact of Data Centers in Pennsylvania

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:

  • Over 33,000 additional total jobs, including 10,000 more jobs in data center sector.
  • Over $6 billion more in total output (direct, indirect and induced sales/revenue).
  • Over $2 billion more in total wages.
  • $110 million more in annual net tax revenues, after accounting for the sales tax exemption.
  • Increased county, municipal, and school district property tax revenue.

This expansion of data centers in Pennsylvania would also have additional community and economic impacts, including:

  • Diversification of local economies.
  • Investments in human capital with high-wage jobs.
  • Improvements to electric grid, including in rural areas.
  • Innovations in energy efficiency.
  • Increased broadband access, including in rural areas.

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