00:01 - The following program is sponsored in part by

00:04 - customer's bank.

00:14 - Representative Jamie Walsh a republican from Missouri county

00:18 - you're interested in repealing a law that gives

00:21 - data centers incentive

00:23 - to locate in Pennsylvania

00:25 - a why do you want to do that.

00:28 - Well I feel like.

00:30 - The rest of us pay taxes I understand that it was

00:34 - initially offered

00:36 - as an incentive program

00:38 - to come here

00:40 - and

00:41 - attempt to bring data centers.

00:43 - Construction and economic development to Pennsylvania.

00:47 - However we're

00:49 - we're learning so much about data centers and the amount of

00:52 - resources they use

00:54 - the amount of.

00:57 - Our.

00:59 - Involvement that they have in the community

01:02 - as far as the as the construction goes on and

01:05 - the damage to our roads because

01:07 - you know the the

01:08 - it's

01:09 - it's constant construction

01:11 - and massive

01:13 - trucks coming in and out

01:14 - daily using our public roads

01:17 - like we all pay taxes

01:19 - and there has to be

01:21 - some limit as to.

01:25 - To this whole program and if we if we don't get

01:28 - our arms around it.

01:30 - We're going to lose out Pennsylvania is going to lose out on

01:33 - on billions of dollars in the end

01:35 - a representative before you go on can you

01:37 - explain the incentive that is currently in place

01:41 - to entice data centers to come to Pennsylvania.

01:45 - Yes in two thousand twenty one there was a

01:48 - senate bill that was passed and that senate bill.

01:52 - Excluded

01:54 - data centers from

01:56 - sales and use tax

01:58 - and the problem with that

02:00 - again we all pay sales and use tax I I like in it to like.

02:07 - These opportunities ones that we've created in Pennsylvania tax free to

02:11 - bring.

02:12 - Companies here and

02:14 - in kind of spur economic development

02:17 - but this is much more massive than than

02:20 - this the commonwealth of Virginia.

02:23 - Is becoming

02:24 - rich over

02:26 - the sales tax that these data center companies pay.

02:31 - And

02:32 - Pennsylvania is never going to realize any of that

02:36 - so

02:36 - We we have to put the brakes on this

02:39 - and we.

02:41 - I think the more of it is unknown

02:43 - it seems like every day you're learning something new about data center development

02:47 - that.

02:48 - We we need

02:50 - we need restrictions and we need

02:51 - to stop this program so in the end

02:55 - if data center development does come to some areas

02:58 - Pennsylvania is realizing

03:00 - those tax dollars

03:02 - all in order for a data center to take advantage

03:05 - of their sales and use tax exemption just

03:08 - what do they have to buy what does that apply to.

03:12 - Okay so a lot of people ask me that question so

03:15 - the

03:16 - it obviously anything.

03:18 - Construction wise which is

03:20 - which is huge okay

03:22 - anything that they're buying to construct these massive data centers

03:26 - but the

03:26 - ongoing income is the where we really lose out.

03:32 - Every I've heard ranges anywhere between seven months to a year.

03:37 - Every seven months to roughly eight year

03:40 - the internal components the computer chips everything that's inside.

03:45 - Whether it's due to.

03:48 - Burn out whether it's due to needing more more capacity

03:52 - on

03:52 - Upgrading

03:54 - anything that is done inside these massive

03:57 - two hundred and fifty thousand square foot up to a million square foot

04:01 - buildings they have to be upgraded

04:04 - and

04:05 - everything the time that happens Pennsylvania is losing out on

04:09 - on

04:10 - Tax dollars

04:11 - by canceling the tax exemption for data centers

04:15 - what do you hope to accomplish.

04:18 - Well number one I hope that the revenue.

04:21 - Helps.

04:23 - Pennsylvania

04:24 - Pennsylvania bottom line

04:26 - if you don't know this already which I'm sure you do.

04:30 - We have a governor who is very eager on spending money

04:34 - and at least this would help.

04:37 - Close that gap a little bit because right now

04:40 - we're spending over revenue and that's not good

04:43 - help Pennsylvania in the long run

04:45 - so that's number one the second thing is.

04:50 - The second part of that is.

04:52 - I believe it will

04:54 - kind of like

04:55 - slow down development a little bit.

04:58 - Let Pennsylvania realize what they're fully getting into because I still don't think

05:04 - the average legislator in Pennsylvania realizes what we're getting into as far as the

05:10 - natural resources

05:12 - the

05:13 - impact to our

05:14 - electric grid

05:15 - and so on and so forth so

05:18 - those are the two things I hope to accomplish

05:20 - if the tax exemption for data centers is

05:24 - repealed then as you pointed out before that would mean additional tax revenue

05:28 - for pennsylvanians as long as data centers come to Pennsylvania and buy equipment

05:33 - so I have an understanding that this additional revenue

05:36 - that would come from repealing that tax exemption

05:39 - could go to something called the motor license fund

05:42 - what kind of benefits

05:44 - would be realized by pennsylvanians if that happened.

05:48 - While Pennsylvania right now has a fifty seven cent

05:51 - per gallon gas tax and so that that.

05:56 - Money would go into the motor vehicle fund at least a portion of it

06:00 - would go into the motor vehicle fund to offset that fifty seven cents

06:05 - and in

06:06 - the everyday individual driving to work working forty hours a week

06:10 - and raising a family

06:12 - maybe working two potentially three jobs to make ends meet.

06:17 - I would

06:18 - realize that benefit right up front.

06:21 - Now we have over one hundred and ten data centers in Pennsylvania already.

06:26 - So what the total overall revenue is going to

06:30 - bring in.

06:32 - No one even knows in Harrisburg how much that's going to bring in

06:36 - but at least the starting point would be to

06:39 - get get a portion of it into the motor vehicle

06:41 - fund to offset that fifty seven cent gas tax

06:44 - and

06:45 - hopefully we can steer the rest to work on things such as like property taxes and

06:50 - and so forth

06:51 - how about your law

06:52 - slay slated district representative are you feeling any

06:56 - direct impact from data centres existing or planned.

07:00 - Yeah

07:01 - ok

07:02 - The largest campus in my district being built

07:05 - currently in Pennsylvania that's that's literally

07:07 - under construction and it's an Amazon web service.

07:11 - It.

07:13 - Data center campus.

07:16 - That's being built in Salem township and they broke ground on that.

07:22 - A little over a year ago

07:24 - and

07:24 - they plan to have

07:27 - they already have one building up and running they're working on the second.

07:31 - As we speak

07:32 - but that campus is going to

07:35 - be anywhere between.

07:37 - I've heard ranges anywhere between thirteen to

07:39 - seventeen buildings when it's finally completed.

07:43 - Let's move on to another bill about data centers

07:46 - then it it really has to do with putting the brakes

07:49 - on developing data center so

07:52 - it would put in place

07:53 - a moratorium

07:54 - on the development of data centers and how long would that be and

07:59 - what would you hope to accomplish

08:01 - while a development I was in a pause mode.

08:05 - So in my

08:06 - perspective from my perspective

08:09 - the only bill right now that.

08:13 - Governor shapiro should be fast-tracking.

08:17 - You.

08:18 - Would be this bill.

08:20 - Because what it does is it gives our local municipality you remember.

08:26 - Pennsylvania

08:27 - our commonwealth is all about local control

08:31 - and

08:32 - if we can empower our local municipalities

08:36 - with

08:36 - something like an eighteen month moratorium which is what I'm

08:41 - presenting.

08:42 - That will give that

08:44 - municipality eighteen months

08:47 - to

08:48 - Educate themselves on data centers.

08:51 - Understand

08:52 - the.

08:53 - Economic impact and environmental impact as well

08:58 - and it will give them eat that eighteen months to

09:01 - write themselves an ordinance.

09:04 - That works for the people that live there

09:07 - and and I and I think.

09:10 - Y can tell you in my district I have twenty nine municipalities.

09:15 - I have nine municipalities right now nine.

09:19 - That either have

09:20 - a land offer.

09:22 - Or an application for a data center.

09:27 - That's almost a third of my municipalities

09:30 - there

09:31 - if they all went through.

09:33 - My district

09:35 - would look like data center alley in ashburn city Virginia.

09:40 - There's a one hundred and fifty five data centers

09:42 - in ashburn city with

09:44 - another hundred permitted so there's going to be two hundred and fifty five

09:48 - data centers.

09:50 - As of right now

09:51 - in ashburn city Virginia.

09:53 - There are already

09:55 - in Salem township alone that one municipality

09:59 - there's already over thirty data centers planned for that

10:02 - one township so now you add another nine

10:05 - to that.

10:07 - A representative how big a strain can data centers have

10:11 - existing energy grid.

10:14 - So as you know the energy prices and projections are all done at auction right.

10:21 - Well

10:21 - if a data center wants to come to an area

10:25 - they put on that auction block how much energy that they're going to need

10:29 - so the supply.

10:32 - For the demand that's

10:33 - that.

10:36 - At that auction

10:37 - the demand that is being considered.

10:39 - Is also

10:41 - not just residential not just commercial

10:44 - but now these massive twenty to twenty five megawatt

10:49 - data centers

10:50 - and just so you know

10:51 - one megawatt.

10:54 - A

10:55 - One megawatt

10:57 - can

10:57 - supply roughly a million homes.

11:01 - With energy.

11:03 - So you have a twenty to twenty five megawatt data center campus coming peer

11:07 - district.

11:09 - You're talking.

11:12 - Now you are competing directly

11:14 - on that auction

11:16 - with these date with the data center

11:18 - companies and it's driving prices Wade through the roof because

11:22 - they have to get these projections out way ahead of time

11:25 - and that's one attribute as to why our electricity bills right now

11:30 - are being affected.

11:32 - A representative we only have about two minutes left in

11:35 - this segment so what are some of the questions that are

11:39 - in your mind that you think

11:40 - ought to be answered right away.

11:44 - Well again the moratorium

11:47 - we need anybody that's listening to this

11:50 - to reach out

11:52 - to their local representative

11:54 - and have them support this house bill

11:56 - because and there's also a companion bill in the senate with senator jarrett Coleman.

12:02 - So we have to two bites at the apple here

12:05 - so if you have anybody listening

12:07 - please

12:08 - contact your representative tell them to support this moratorium

12:12 - it's

12:13 - totally up to the local municipality.

12:16 - If they want to adopt this moratorium.

12:19 - Representative Jamie Walsh republican from lucerne county thank you for your time.

12:24 - Thank you very much Larry.

12:28 - Hmm.

12:41 - Hmm.