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State Senator proposing two bills addressing data center concerns
Stacy Wescoe//April 17, 2026//
Listen to this articleState Sen. Jarrett Coleman, R-16, said he will be introducing two pieces of legislation aimed at addressing constituent concerns on data centers and the state gas tax.
“I have heard concerns from many residents regarding the various data centers being constructed in their communities, as well as the financial burdens of the increasing gas prices,” said Coleman. “The two bills I will be introducing are the result of those conversations and serve as potential solutions to this ever-growing issue.”
The first bill would repeal the state Computer Data Center Equipment Exemption program, with the resulting revenue directed to the Motor License Fund for the sole purpose of reducing the Oil Company Franchise Tax, which adds about 58 cents to every gallon of gas and 74 cents to every gallon of diesel fuel purchased in Pennsylvania.
Coleman said the Computer Data Center Equipment Exemption Program, which was enacted in 2021, incentivizes data centers to locate in Pennsylvania by exempting computer data center equipment from sales and use tax when it is sold to, used, or consumed in a certified data center by an owner, operator or qualified tenant.
The second bill would give municipalities the option of placing a moratorium on data center applications so that, if they choose, they can revise their ordinances and establish conditional use policies addressing issues like power supply, water consumption, noise and setbacks which they determine protect the community’s interest.
With the influx of proposals for data centers, Coleman said municipalities, which decide local land use policies, are having difficulties fully understanding the many environmental and community impacts of this new industry and reviewing and revising their zoning ordinances.
He said he hopes his bill would help alleviate that problem for municipalities.
