I have 116.22 GB of System Data and 20.51 GB of macOS files. Are you sire it's System Data that is only 34.5 GB?

System Data use to be called "Other Category" in previous systems and would include the following:
• System temporary files
• macOS system folders
• Archives and disk images (.zip, .iso, etc. - often found in the Downloads folder)
• Personal user data
• Files from the user’s library (Application Support, iCloud files, screensavers, etc.)
• Cache files: browser, Mail
• Mail messages & attachments
• Fonts, plugins, extensions
• Safari reading list
• iTunes backups
• Crud resulting from jailbreaking your iDevice
• Game data
• Saved data files
• Call history
• Notes
• Media
• Voice memos
• Other files that are not recognized by a Spotlight search
• Media files that cannot be classified by Spotlight as a media file because they are located inside of a package
• Files created and modified by other user accounts on your Mac.
They can be located anywhere on your hard drive.