The state House on Thursday gave bipartisan approval to revoking a sales tax exemption for equipment for data centers, with one supporter equating the industry frenzy in Pennsylvania to an irresponsible and speculative “gold rush.”

Democratic Rep. Kyle Mullins of Lackawanna County said his home county has proposals for 16 different data centers. One borough – Archbald – has six proposals that collectively would have 51 buildings and take up 14% of the borough’s entire footprint, he said.

“Tell me that’s appropriate,” Mullins said.

The Democratic-controlled House the previous day passed a bill codifying data center standards backed by Gov. Josh Shaprio, as well as a bill to give municipalities the ability to enact a six-month “pause” on data centers.

Mullins on Thursday told House colleagues the Republican-controlled Senate has “sat on its hands” when it comes to regulating the industry.

In an interview after the 197-5 vote to pass the tax break revocation, Mullins was more specific.

“These concerns are clearly not a partisan issue,” Mullins said. “I am hoping that the Senate comes to the realization that they bear a moral and procedural responsibility to finish the job of putting appropriate guard rails and brakes on this runaway industry.”

The data center industry tax break took effect on Jan. 1, 2022.

The so-called Computer Data Center Equipment Exemption Program eliminated $41.1 million in state revenue in 2024-25 and will eliminate $114.8 million this fiscal year, according to a recent state report. The lost revenue is projected to increase to $517.2 million in 2030-31, the report said.

The five lawmakers who voted against revoking the tax exemption were Republican Reps. Jim Struzzi of Indiana County, Marci Mustello of Butler County, Eric Nelson of Westmoreland County, and Tim Twardzik of Schuylkill County, as well as Democratic Rep. Manuel Guzman of Berks County.

Asked about his vote, Guzman said a data center has been proposed at the site of the former Titus power station in his district. And, he said, the nation is in a “cold war” with other countries over the development of artificial intelligence.

Pennsylvania, he said, has the potentialt to be a leader in artificial intelligence.

The actions came as both the House and Senate scaled back their voting-day schedules between Thursday and June 30, the final day of the fiscal year and the deadline to produce a state budget.

Last year, state leaders missed the deadline by 135 days. As a result, billions of dollars in state payments were held, numerous employees were furloughed, and counties lost millions of dollars.

Both the House and Senate are scheduled to return to Harrisburg for voting sessions on Monday.