We all need to pay closer attention to what our state administrators are doing.  Yesterday's cheers have turned into today's groans.

            More than 30 states offer tax incentives to attract data centers.  Usually through sales and use tax exemptions on equipment and construction materials.  Also, some offer property tax abatements and reduced electricity rates.

            According to the Pennsylvania Government website, the program was designed to provide a tax refund for sales and use tax paid on qualified computer data center equipment utilized within a facility certified by the Department of Revenue. The passage of Act 25 of 2021 established the Computer Data Center Sales and Use Tax Exemption Program. Beginning January 1, 2022, computer data center equipment is exempt from Pennsylvania sales and use tax when it is sold to, used, or consumed in a certified data center by an owner, operator or qualified tenant holding a Computer Data Center Sales and Use Tax Certificate of Exemption issued by the department.?

            Also, according to the official website, in June 2025, Governor Shapiro secured the largest private sector investment in Pennsylvania history - a $20 billion investment from Amazon to build AI innovation campuses and create 1,250 permanent high-paying technology jobs across the Commonwealth. The administration worked closely with local leaders and Amazon to land the deal and continues to engage with communities in Luzerne and Bucks counties to ensure local concerns are heard and addressed while additional Pennsylvania sites are explored.

            It seems nobody complained until it came to their neighborhood.

            In February Gov. Shapiro introduced changes, including that developers: bring their own power generation to the grid or pay for the energy they use; commit to transparency; hire and train local workers; and follow environmental protection guidelines.  But later, when the full standards were released, the administration publicly confirmed, for the first time, that it also hopes to rewrite a major sales and use tax exemption. Under the planned revision, developers would have to follow the new standards to receive the exemption.

            That includes adhering to the Governor's Responsible Infrastructure Development (GRID), escalating requirements for the amount of clean energy data centers must build or buy to power their operations, which would top out at 32% of total usage by 2035, creating at least 200 construction jobs, paying $1.5 million annually in total wages after four years of operation, and submitting environmental sustainability plans that detail how the data center will employ "leading technologies to limit water and energy consumption."

            It now needs the Pennsylvania State Legislature to make it law.  The House passed it in late June and it now awaits Senate approval.

            Let's hope it's not too late.