Pennsylvania voted 197–5 to repeal a data center tax break projected to cost $517M annually by 2030, stripping benefits from Amazon, Microsoft, and Alphabet.
$75–100 million in capital investment and 25–45 jobs
Only $2M/job! What a steal.
Dozens of data center projects were already benefiting as of January 2026
Should be noted that a lot of these data centers can’t turn on, because the grid doesn’t have the capacity. Others can’t turn on because they have no customers lined up, merely trying to front-run demand.
These tax breaks are subsidizing a business need that hasn’t even materialized yet. And because of the poor regulatory and tax auditing of these highly technical facilities, it is entirely unclear how the state could have recouped these tax losses had the centers ever turned on.
I love doing this sort of math on things. They could have just paid all those people $200,000 a year for a decade to sit on their ass and it would have cost the same.
Tax exemptions for activity that would not have taken place without those tax exemptions cost the state nothing - no money is being “thrown” and no potential tax income is being forgone. Meanwhile, giving “poor guys” $200,000 a year costs $200,000 per year per poor guy. That’s the difference.
Only $2M/job! What a steal.
Should be noted that a lot of these data centers can’t turn on, because the grid doesn’t have the capacity. Others can’t turn on because they have no customers lined up, merely trying to front-run demand.
These tax breaks are subsidizing a business need that hasn’t even materialized yet. And because of the poor regulatory and tax auditing of these highly technical facilities, it is entirely unclear how the state could have recouped these tax losses had the centers ever turned on.
I love doing this sort of math on things. They could have just paid all those people $200,000 a year for a decade to sit on their ass and it would have cost the same.
We were gonna pay Iran $300b so that they wouldn’t charge $8b/month ($2m per ship) in fees for two months.
Well no, they couldn’t have, because this is money they can’t get in any case. Data centers that aren’t built don’t pay taxes.
So throwing money at a rich guy is good but throwing money at poor guys is bad. Got it.
It will trickle down, in someones moneybin.
Tax exemptions for activity that would not have taken place without those tax exemptions cost the state nothing - no money is being “thrown” and no potential tax income is being forgone. Meanwhile, giving “poor guys” $200,000 a year costs $200,000 per year per poor guy. That’s the difference.
Okay, exempt a bunch of normal folks from taxes then. Hell, if you start with the lowest bracket you could give money to thousands of people.