April 22, 2026
Governor Shapiro’s FY 2026–27 proposed budget continues to support data center expansion through growing tax breaks, including a sales and use tax exemption projected to reach $188.4 million in 2026–27 and rise to $517.2 million by 2030–31. Yet the proposal offers little clarity about what Pennsylvanians receive in return, including enforceable standards for job quality, local benefits, energy use, water demand, or community protections. At the same time, several bills in Harrisburg show that lawmakers are beginning to debate whether the state should accelerate data center growth, impose stronger guardrails, or roll back parts of this support.