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Last Update: 10/02/2026 at 10:34 AM EST
Virginia’s Data Center Tax Trade-Off
Coverage from Virginia Legislative Information System, Cardinal News, and others
Virginia’s 2026 budget deal keeps the data center sales and use tax exemption while adding a tax on electricity consumption, capped at $600 million a year.
The compromise reflects competing arguments over the value of the tax incentives and the costs of data center power use; separate utility rate changes also affect large facilities. Local proposals in Prince William and Goochland counties show that land use, project review, and environmental concerns remain active alongside the statewide debate.
Key Articles5 of 137 articles
If you read one thing
It gives the clearest broad framing of Virginia’s tax compromise and its connection to utility rates and land-use policy.
Latest development
It adds validated detail on the electricity-tax cap, healthcare funding, and the fiscal risks of relying on that revenue.
The evidence
It explains how regulators are shifting transmission costs toward large-load customers while noting the tariff may not cover every reliability cost.
The local angle
The Digital Gateway case shows how public-notice litigation can shape the fate of a major local project.
The evidence
It adds quantified groundwater evidence and shows how water demand has become a statewide policy concern.
Key Issues
The tax compromise preserves the exemption while adding an electricity charge
Virginia preserved the data-center sales-and-use tax exemption while imposing a capped tax on electricity consumption, linking new revenue to public spending without removing a major industry incentive. Reports differ on the exact per-kilowatt-hour rate, so the $600 million annual cap is the clearer established feature.
Stable
Grid costs are shifting toward large-load facilities
Virginia regulators have directed Dominion to assign more transmission costs to data centers and other large-load customers that drive infrastructure needs, rather than broadly spreading those costs across ratepayers. The new tariff framework is still being worked through, and regulators have cautioned it may not capture every reliability cost.
Stable
Local review and opposition shape project outcomes
Public hearings, zoning decisions, litigation, and organized opposition can constrain or halt individual projects even as some residents support data-center growth with safeguards. The Digital Gateway dispute has split outcomes: Compass ended its effort while QTS continues appeals; Goochland’s proposed campus remains under local review.
Mixed
Resource and environmental impacts remain constraints
Groundwater demand and generator emissions are subject to growing scrutiny and regulatory requirements. Responses can shift pressure between resources: reducing water-intensive cooling, for example, can increase electricity demand.
Stable
Key Numbers
25%
respondents neutral toward data center development in their area
“The survey did not show simple opposition to development: 47% of respondents supported data center development in their area, 25% were neutral and 27% opposed it.”
2,100-acre acres
proposed campus area
“The article also reports that public protest and legal action led developers to withdraw a proposal in early July 2026 for a 2,100-acre Prince William County campus with as many as 37 data centers.”
37 data centers
Maximum number of data centers proposed for the campus
“The article also describes recent opposition in Prince William County: public protest and legal action led developers to withdraw a proposal for a 2,100-acre campus with as many as 37 data centers in early July 2026.”
12.3% percent
Preference influence of required environmental impact assessments
“Residents most strongly favored policies addressing visible and immediate impacts. Putting new electricity transmission lines underground had the greatest influence on preferences, at 27.1%. Public participation before facility approval and prohibiting data centers near sensitive places such as homes, schools, and parks each accounted for 18.8%. Regular energy and water use reporting accounted for 18.3%, and required environmental impact assessments for 12.3%. Charging data centers higher electricity rates received the least support, at 4.6%.”
18.3% percent
Preference influence of regular energy and water use reporting
“Residents most strongly favored policies addressing visible and immediate impacts. Putting new electricity transmission lines underground had the greatest influence on preferences, at 27.1%. Public participation before facility approval and prohibiting data centers near sensitive places such as homes, schools, and parks each accounted for 18.8%. Regular energy and water use reporting accounted for 18.3%, and required environmental impact assessments for 12.3%. Charging data centers higher electricity rates received the least support, at 4.6%.”
Looking Back
145 Day Timeline
May 10
Jun 3
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Jul 21
Aug 14
Sep 7
Oct 1
The Story So Far
No material change
The new articles add context on resident preferences and local opposition, but do not establish a material change to the Topic since the prior state. The electricity-tax revenue and health-premium connection was already covered.
Previously
Virginia’s 2026 budget deal keeps the data center sales and use tax exemption while adding a tax on electricity consumption, capped at $600 million a year. The compromise reflects competing arguments over the value of the tax incentives and the costs of data center power use; separate utility rate changes also affect large facilities. Local proposals in Prince William and Goochland counties show that land use, project review, and environmental concerns remain active alongside the statewide debate.
History
10/01/2026
The local dispute has a clearer split outcome: Compass ended its Digital Gateway effort while QTS continues appeals. The current account also says reports differ on the electricity tax rate, weakening the previously stated $0.011 figure.
09/29/2026
The main new development is a utility-regulatory change: Virginia established a separate rate class for data centers of at least 25 megawatts and rejected a proposed rate increase.
All Articles137 articles
Important
Virginia Department of Energy will lead a 2026 report and stakeholder work group to assess and accelerate data-center waste-heat use statewide.
7/10/2026 • Water & Cooling • General
Virginia localities are considering data-center bans and restrictions amid public opposition, potentially shifting development, grid demand, water use, emissions, jobs, and tax revenue to other states.
8/17/2026 • Permitting & Regulation • General
Following a regional power fault and groundwater warning, Virginia state Sen. Glen Sturtevant urged Governor Abigail Spanberger to impose a statewide data center moratorium.
8/3/2026 • Permitting & Regulation • General
Virginia requires data-center permit applications submitted on or after July 1, 2026 to limit each engine-generator set to Tier 4 equivalent emissions.
7/5/2026 • Permitting & Regulation • General
Virginia Senators Richard Stuart and Russet Perry asked Governor Abigail Spanberger to call a special session after a state report identified potential groundwater strain from data center growth.
8/3/2026 • Water & Cooling • General
Virginia polls in 2023 to 2024 show declining support and rising opposition to data center tax breaks, alongside broad backing for electricity-demand offset fees.
7/21/2026 • Community & Local Opposition • General
Loudoun, Fairfax, and Prince William counties in Virginia are tightening zoning standards for substations while the State Corporation Commission revises transmission review factors affecting data center power buildouts.
5/20/2026 • Power Procurement & Grid • General
Tract filed a conditional use permit pre-application for Tuckahoe Technology Park in Goochland County, Virginia, prompting concerns about emissions, noise, and water impacts.
7/11/2026 • Permitting & Regulation • General
Virginia legislators approved a budget Monday creating a per-kilowatt-hour data center energy tax and directing DEQ cooling and noise regulation studies and rulemaking.
6/22/2026 • Permitting & Regulation • General
Prince William County, Virginia reviews Quantico Ridge, Six Towers Industrial Park, and Southgate data center proposals near schools, parks, and Four Seasons residents, with rezoning and permit decisions pending.
5/20/2026 • Permitting & Regulation • General
QTS and Compass Datacenters faced court challenges over Prince William County zoning notice timing for the Digital Gateway data-center hub in Northern Virginia.
5/10/2026 • Permitting & Regulation • General
Virginia's SCC will decide by August 1 whether Dominion Energy can change transmission cost allocation so data centers pay for lines serving exclusive load.
7/15/2026 • Power Procurement & Grid • General
Virginia voters and residents are increasingly opposing data-center expansion this spring because energy, water, noise, pollution and artificial intelligence concerns are intensifying across the state.
9/21/2026 • Community & Local Opposition • General
Virginia's State Corporation Commission ordered data centers to pay for dedicated substations and transmission lines after state officials sought protection for electricity ratepayers.
8/5/2026 • Power Procurement & Grid • General
Virginia's State Corporation Commission ordered Dominion Energy to develop a policy assigning data-center-related transmission costs directly to large-load customers across Virginia.
8/5/2026 • Power Procurement & Grid • General
The Virginia State Corporation Commission ordered Dominion Energy on July 31 in Virginia to develop rules requiring data centers and other large-load customers to fund dedicated transmission infrastructure.
8/5/2026 • Power Procurement & Grid • General
Virginia's State Corporation Commission ordered Dominion Energy to develop a transmission tariff directly charging data centers and other large-load customers for infrastructure triggered by new connections.
8/5/2026 • Power Procurement & Grid • General
Virginia State Corporation Commission officials held testimony on Dominion Energy Rider T-1, debating whether households or large data center loads pay for transmission upgrades.
7/19/2026 • Power Procurement & Grid • General
Dominion Energy transmission rider T-1 faces a Virginia State Corporation Commission hearing, as regulators decide how to allocate grid upgrade costs driven by Northern Virginia data centers.
7/16/2026 • Power Procurement & Grid • General
Virginia regulators assess a but-for transmission cost-allocation approach for Dominion data center load, with a ruling on a $1.5 billion rate rider due by Aug. 1.
7/16/2026 • Power Procurement & Grid • General
Spanberger’s administration, through a State Corporation Commission filing, urged Virginia to change Dominion Rider T-1 so data centers pay transmission upgrade costs.
7/13/2026 • Power Procurement & Grid • General
In 2026, Spotsylvania County supervisors will consider supporting a statewide data-center moratorium as Virginia officials debate electricity demand, water protection, and local control.
8/8/2026 • Permitting & Regulation • General
Virginia Sen. Glen Sturtevant urged Gov. Abigail Spanberger in a recent letter to pause statewide data-center approvals while lawmakers study grid, water, health, and tax concerns.
7/31/2026 • Permitting & Regulation • General
Virginia SCC testimony in 2026 focused on Dominion Energy Rider T-1 transmission cost recovery methods tied to data center load growth, with a decision due August 1, 2026.
7/15/2026 • Power Procurement & Grid • General
In fall 2025, researchers surveyed 1,004 residents across Northern Virginia and greater Richmond, finding strong support for safeguards and public review of data center projects.
9/27/2026 • Community & Local Opposition • General
Researchers found in a fall 2025 survey across Northern Virginia and the Richmond metropolitan area that residents favored data center safeguards alongside continued development.
9/28/2026 • Community & Local Opposition • General
Interesting
In fall 2025, researchers surveyed 1,004 Northern Virginia and Richmond-area residents, finding strongest support for underground power lines, siting limits, and resource reporting.
9/25/2026 • Community & Local Opposition • General
Virginia data centers are generating tax revenue, construction, and supply-chain jobs while raising electricity costs and water concerns across communities including Loudoun, Mecklenburg, and Botetourt counties.
9/15/2026 • Market Demand & Investment • General
Virginia Gov. Abigail Spanberger announced Wednesday that the State Corporation Commission ordered data centers in Virginia to pay for transmission infrastructure built exclusively for their facilities.
8/5/2026 • Power Procurement & Grid • General
Virginia's State Corporation Commission ordered data centers and other large-load customers to pay for dedicated transmission infrastructure in Virginia, following advocacy from Governor Abigail Spanberger's administration.
8/5/2026 • Power Procurement & Grid • General
Virginia's State Corporation Commission ordered data centers to pay dedicated transmission infrastructure costs in Richmond after Governor Abigail Spanberger's administration sought protection for other ratepayers.
8/5/2026 • Power Procurement & Grid • General
Paul Gigot interviews Holman Jenkins on how Loudoun County zoning acceptance and Prince William County NIMBY sentiment shape data-center outcomes in Virginia.
6/19/2026 • Community & Local Opposition • General
Virginia Gov. Abigail Spanberger is supporting local control over data center approvals as Loudoun and Stafford counties consider pauses and new restrictions.
8/13/2026 • Permitting & Regulation • General
Virginia lawmakers approved a two-year budget adding a $0.011 per kWh data center energy tax plus DEQ water and noise requirements, with noise fines starting in 2030.
7/4/2026 • Policy & Utility Planning • General
Virginia lawmakers and local communities are now confronting data-center growth through debates over water, grid capacity, energy infrastructure, and land-use authority statewide.
8/4/2026 • Policy & Utility Planning • General
Virginia enacted HB 30 on June 29, 2026, preserving data center equipment exemptions while imposing a temporary electricity consumption tax statewide.
7/31/2026 • Project Finance & Incentives • General
Virginia's budget adds an electricity consumption tax on data centers while localities reject or restrict proposed sites across several rural counties.
7/13/2026 • Policy & Utility Planning • General
Virginia leaders agreed in a budget compromise for data centers on taxes and noise and water limits after weeks of industry and political disputes.
7/13/2026 • Policy & Utility Planning • General
Virginia data center stakeholders propose a capped electricity tax after lawmakers faced pressure to repeal a large sales tax exemption.
7/12/2026 • Project Finance & Incentives • General
Virginia lawmakers approved energy consumption and water use regulations for data centers in 2026 as Loudoun County and residents opposed additional expansion.
7/8/2026 • Policy & Utility Planning • General
Virginia lawmakers debated DCSUTE during prolonged budget negotiations after March 14, 2026 adjournment, agreeing to a capped $0.011 per kWh energy consumption tax starting July 1, 2026.
7/7/2026 • Policy & Utility Planning • General
Virginia lawmakers preserved data center sales and use tax exemptions while approving a capped electricity consumption tax and new 25 MW-plus rate-class charges.
7/6/2026 • Policy & Utility Planning • General
Virginia policymakers proposed ending data center sales and use tax exemptions and tightened zoning in 2024 to address grid sufficiency and local land-use conflicts.
6/29/2026 • Policy & Utility Planning • General
Virginia legislature approved June 22, 2026 a 2026 biennial budget with a July 1, 2026 electricity consumption tax and cooling-water scarcity rules for certain data centers.
6/26/2026 • Policy & Utility Planning • General
Virginia lawmakers proposed Data Center Accountability rules in 2025 that defer enforceable environmental measures and retain data center tax breaks while electricity and water impacts grow.
6/20/2026 • Policy & Utility Planning • General
Virginia lawmakers agreed on a budget compromise during the current spending negotiations, preserving data center tax incentives and adding a capped electricity consumption tax.
6/20/2026 • Policy & Utility Planning • General
Virginia lawmakers debate early termination of 2008 data center tax exemptions in budget language, amid Gov. Abigail Spanberger warnings and JLARC estimates about GDP and utility bill impacts.
6/18/2026 • Project Finance & Incentives • General
Virginia lawmakers and Gov. Abigail Spanberger created a commission to study data center costs while Senate Chair Louise Lucas renewed efforts to end the sales tax exemption.
6/16/2026 • Policy & Utility Planning • General
Illinois Gov. J.B. Pritzker announced a suspension of data center tax incentives, and Virginia lawmakers debate whether to keep similar abatements.
6/11/2026 • Project Finance & Incentives • General
Chris Miller urges Virginia legislators in the 2026 budget to end the data center sales tax exemption and require State Corporation Commission review of large load and rate impacts.
6/8/2026 • Policy & Utility Planning • General
Mark Sickles said Compass Datacenters paused Greensville County and Emporia site searches due to uncertainty about Virginia continuing data center tax abatements.
5/22/2026 • Policy & Utility Planning • General
In fall 2025, researchers surveyed 1,004 residents across Northern Virginia and the Richmond metropolitan area, finding support for data center growth paired with demands for public review and safeguards.
9/26/2026 • Community & Local Opposition • General
Researchers reported in 2026 that residents surveyed in fall 2025 across Northern Virginia and the Richmond metropolitan area supported data center growth while preferring siting safeguards, public review, and resource reporting.
9/25/2026 • Community & Local Opposition • General
Virginia residents and local officials are intensifying bipartisan opposition to data-center projects in 2020s Virginia over water, power costs, land use, and AI concerns.
8/27/2026 • Community & Local Opposition • General
Virginia will tax data center electricity use at 1.1 cents per kWh starting July 1, 2026, reshaping power cost allocation as grid and wholesale price impacts emerge.
7/13/2026 • Policy & Utility Planning • General
AI-driven data center growth is expanding manufacturing and skilled-trade employment across the United States, including Virginia, as communities debate energy, water use and construction limits.
9/29/2026 • Market Demand & Investment • General
On September 18 in Virginia, Governor Abigail Spanberger issued a data center accountability framework as the Piedmont Environmental Council renewed its call for a statewide development moratorium.
9/30/2026 • Community & Local Opposition • General
Virginia residents and officials are challenging data center development in Virginia Beach and several counties over historic landscapes, infrastructure, rural character, and utility costs.
8/28/2026 • Community & Local Opposition • General
Under current Virginia law, the state taxes data center electricity use at $0.011 per kilowatt-hour, caps proceeds at $600 million, and expects revenue to support health exchange funding.
10/1/2026 • Policy & Utility Planning • General
Virginia congressional candidates are making data-center tax exemptions and infrastructure effects a campaign issue during current campaigns across Virginia.
9/21/2026 • Project Finance & Incentives • General
Virginia lawmakers are weighing a capped 1.1-cent-per-kilowatt-hour electricity tax for data centers as a sales tax exemption repeal is considered.
7/12/2026 • Project Finance & Incentives • General
Virginia faces revised CNBC best state for business scoring and ongoing data center tax incentive changes as infrastructure reliability and business friendliness measures receive updated emphasis.
6/25/2026 • Policy & Utility Planning • General
Cardinal News opinion urges Virginia lawmakers to evaluate JLARC-measured returns before changing the statewide data center tax exemption.
6/19/2026 • Project Finance & Incentives • General
In Botetourt County, Virginia, protests against planned Google data center construction intersect with a statewide fight over data center tax incentives through 2035 and supply-chain manufacturing job growth.
6/16/2026 • Project Finance & Incentives • General
Virginia adopted a June 22 spending plan imposing a $600 million data-center electricity-use tax, adding water and noise rules but limiting diesel and carbon-free backup requirements.
6/24/2026 • Policy & Utility Planning • General
Ohio tax officials reported higher revenue losses from the state data-center sales tax exemption in 2024 and 2025, intensifying debates over repeal efforts after a DeWine veto.
5/21/2026 • Project Finance & Incentives • General
Virginia's Joint Subcommittee on Tax Policy examined data center exemptions and a temporary electricity consumption tax Wednesday in Virginia.
8/20/2026 • Project Finance & Incentives • General
Henrico and Loudoun counties are using data center tax revenue for housing and public services in Virginia as residents and lawmakers debate growth, siting, and environmental impacts.
8/17/2026 • Policy & Utility Planning • General
Virginia lawmakers adopted a temporary data center electricity tax in June as states across the United States responded to rising AI-related power demand and public-resource costs.
8/16/2026 • Policy & Utility Planning • General
Rhode Island lawmakers weigh 30-year data center tax exemptions and developer funding for grid upgrades as AI increases electricity demand.
7/26/2026 • Policy & Utility Planning • General
In Virginia’s 2026 budget, lawmakers retained data center equipment tax exemption through 2035 or later while adding a capped electricity tax and new noise and water-cooling rules.
7/21/2026 • Project Finance & Incentives • General
Virginia began taxing data center electricity consumption at 1.1 cents per kilowatt-hour on July 1 as grid-capacity and power-price impacts become clearer.
7/13/2026 • Policy & Utility Planning • General
Tract filed with Goochland County, Virginia, to pursue a conditional use permit for Tuckahoe Technology Park, targeting an 872-acre, phased data center campus near Richmond.
7/13/2026 • Infrastructure & Site Development • General
Virginia Governor Abigail Spanberger announced a statewide consumption tax on data-center energy use in July 2026, alongside backup generator and local impact legislation and PJM coordination.
7/6/2026 • Policy & Utility Planning • General
Virginia lawmakers preserved a long-standing data center sales tax exemption in a budget fight and added a two-year electricity consumption tax.
7/6/2026 • Project Finance & Incentives • General
Virginia lawmakers preserved the data center sales and use tax exemption in 2035 and added new energy, water, noise, and backup-generator rules amid local opposition and rising power demand.
7/6/2026 • Policy & Utility Planning • General
Virginia lawmakers in 2024 preserved the data center tax exemption while adding energy, water, and noise regulations to manage growing power demand and local impacts.
7/6/2026 • Policy & Utility Planning • General
Washington lawmakers passed SB 6231, effective July 1, ending data center sales-tax exemptions and adding 6.5% tax to repairs and replacements.
7/3/2026 • Project Finance & Incentives • General
Virginia lawmakers and Gov. Abigail Spanberger approved a spring budget compromise creating a statewide $0.11 per kilowatt-hour tax on data center energy use with a $600 million cap.
7/1/2026 • Policy & Utility Planning • General
Virginia’s two-year budget sets a new data center electricity tax and directs DEQ to implement cooling water scarcity rules and noise standards starting in 2027 and 2029.
6/30/2026 • Policy & Utility Planning • General
Abigail Spanberger signed Virginia budget legislation creating a $0.011 per-kWh data center electricity tax effective July 1, 2026, with refunds above a $600 million cap starting fiscal year 2027.
6/30/2026 • Policy & Utility Planning • General
Virginia lawmakers debate data center incentive changes in response to suburban grid, water, and neighborhood conflicts affecting counties including Loudoun and Fairfax.
6/29/2026 • Policy & Utility Planning • General
Virginia lawmakers approved a June 22 budget compromise raising the consumption tax to $0.011 per kilowatt-hour, affecting QTS data center operations in Henrico County.
6/28/2026 • Policy & Utility Planning • General
Virginia lawmakers approved a budget adding a $0.011 per kilowatt-hour electricity consumption tax for data centers while keeping sales and use exemptions, sending it to Gov. Abigail Spanberger.
6/22/2026 • Policy & Utility Planning • General
Virginia lawmakers agreed on a 2026-2028 budget adding an electricity consumption tax for data centers and ordering an exemption impact study, ahead of votes in Richmond.
6/20/2026 • Policy & Utility Planning • General
Virginia lawmakers in a budget conference report propose a capped $0.011 per-kilowatt-hour monthly electricity fee for data centers, with added noise and water-scarcity planning requirements.
6/20/2026 • Policy & Utility Planning • General
Virginia Senate leaders proposed a tiered backup-generator tax on permitted kWe on Tuesday, while preserving the data center sales tax exemption.
6/17/2026 • Project Finance & Incentives • General
Virginia Senate Finance Committee chair Louise Lucas proposed a tiered impact fee for data centers during biennial budget talks, replacing an earlier plan to end tax exemptions early.
6/16/2026 • Project Finance & Incentives • General
Senate President Pro Tempore Louise Lucas and Gov. Abigail Spanberger led competing budget proposals in Virginia over ending or conditioning a $1.9 billion sales tax exemption for data facilities.
6/14/2026 • Project Finance & Incentives • General
Sen. Louise Lucas launched a Virginia listening tour to oppose data center tax exemptions as the June 30 state budget deadline approaches.
6/13/2026 • Project Finance & Incentives • General
Don Scott and Virginia House budget leaders propose a stakeholder commission to study data center tax exemption impacts, with a Nov. 1 General Assembly report.
6/12/2026 • Project Finance & Incentives • General
Abigail Spanberger supported a Virginia House budget proposal creating a Nov 1 data center commission, as House and Senate Democrats dispute whether data center tax breaks end in 2035 or immediately.
6/12/2026 • Project Finance & Incentives • General
Virginia House budget negotiators backed by Gov. Abigail Spanberger replace data-center environmental exemption standards with a commission to study utility, revenue, air, and water impacts ahead of June 30.
6/12/2026 • Project Finance & Incentives • General
Virginia House conferees propose a data center accountability commission and preserve tax exemptions beyond 2027 while Senate proposals favor an early exemption end and tiered impact fees.
6/12/2026 • Policy & Utility Planning • General
PEC urged Virginia legislators to pause new data-center approvals during the June 18 Richmond budget session after Dominion Energy agreed to supply power for 51 GW of data-center demand.
6/10/2026 • Policy & Utility Planning • General
Kent Smith and Louis Bill Blessing III propose repealing Ohio sales-tax exemptions for new data center projects as tax reporting shows much larger forgone revenue than expected.
5/25/2026 • Project Finance & Incentives • General
Ohio Department of Taxation reported that the state data center sales tax exemption cost about $555 million in 2024 and about $1.6 billion in 2025.
5/24/2026 • Project Finance & Incentives • General
Ohio tax officials reported 2024-2025 losses from the state data center sales tax exemption far above forecasts, while Gov. Mike DeWine vetoed ending the incentive.
5/23/2026 • Project Finance & Incentives • General
Ohio lawmakers and Gov. Mike DeWine face renewed pressure after data center sales-tax exemption costs rose above forecasts in 2024 and 2025 projections.
5/22/2026 • Project Finance & Incentives • General
Ohio Department of Taxation data shows the state's data center sales tax exemption cost $555 million in 2024 and about $1.6 billion in 2025, far above forecasts.
5/21/2026 • Project Finance & Incentives • General
Ohio Department of Taxation data in 2024-2025 show the state's data center sales tax exemption cost far more than expected, driving legislative scrutiny after a DeWine veto.
5/21/2026 • Project Finance & Incentives • General
Virginia lawmakers approved a new data-center electricity-use charge effective July 1 and expanded environmental oversight under a June 30 budget compromise.
7/8/2026 • Policy & Utility Planning • General
Virginia lawmakers tied a new electricity-consumption tax for data centers to cooling water scarcity criteria in HB30 budget language starting in July 2026.
6/23/2026 • Policy & Utility Planning • General
Virginia residents and local officials are increasingly resisting data center projects across the state as concerns over water, electricity rates, land use, and artificial intelligence grow.
8/27/2026 • Community & Local Opposition • General
Additional
Virginia Gov. Abigail Spanberger said in Alexandria on Aug. 13, 2026, that she would not impose a statewide data-center moratorium.
8/13/2026 • Policy & Utility Planning • General
VCU polling in Virginia reports strong voter support for electricity-demand offset fees for data centers and broad opposition to sales-tax exemptions tied to data center incentives.
7/16/2026 • Policy & Utility Planning • General
Virginia lawmakers urged Governor Abigail Spanberger to consider a statewide data center moratorium after groundwater stress and an Ashburn transmission outage raised water and grid reliability concerns.
8/2/2026 • Policy & Utility Planning • General
Virginia lawmakers urged Governor Abigail Spanberger to consider a statewide data center moratorium following a July Ashburn transmission outage and groundwater concerns.
8/1/2026 • Policy & Utility Planning • General
Virginia House and Senate budget proposals for the biennium adjust data center tax and diesel backup treatment while lacking emissions-focused environmental requirements.
7/1/2026 • Policy & Utility Planning • General
Virginia passed a biennial budget on Monday adding a capped monthly energy consumption tax for data centers and directing cooling-water scarcity criteria creation by DEQ.
6/22/2026 • Project Finance & Incentives • General
Senator Mark Warner introduced a federal bill in Richmond, Virginia, to require data center environmental disclosure and tie tax benefits to conservation standards.
7/21/2026 • Policy & Utility Planning • General
Virginia policy advocates urge Governor Spanberger and budget conferees to modify $1.9 billion in data-center tax exemptions through clean-power and backup-generation conditions.
7/5/2026 • Project Finance & Incentives • General
Bob Lewis argues Virginia should tax data-center electricity loads and use regional incentives to redirect new siting away from congested Northern Virginia.
6/29/2026 • Policy & Utility Planning • General
Virginia lawmakers approved a budget with a new monthly energy consumption tax on data centers and regulatory studies for water, cooling, and noise standards.
6/25/2026 • Policy & Utility Planning • General
Virginia lawmakers extended data center tax exemptions and proposed an electricity consumption tax, while critics cite deferred State Corporation Commission cost allocation and impact assessment for grid buildouts.
6/23/2026 • Policy & Utility Planning • General
Environmental advocates and CCAN Action Fund, including Victoria Higgins, renewed a Virginia call for a moratorium on new data center approvals after release of a state budget agreement.
6/22/2026 • Policy & Utility Planning • General
Virginia budget talks in 2025 centered on whether to end data center tax exemptions early, with Sen. Louise Lucas and Gov. Abigail Spanberger at odds.
6/18/2026 • Project Finance & Incentives • General
Virginia legislators and the governor debated whether to end a sales and use tax exemption for data center equipment during budget negotiations.
6/17/2026 • Project Finance & Incentives • General
Virginia Governor Abigail Spanberger said Virginia should keep data center tax incentives through 2035 while Senate and House leaders debate early termination during budget talks.
5/28/2026 • Project Finance & Incentives • General
Northern Virginia residents and elected officials met in Manassas on Sunday to oppose data center growth, linking environmental concerns to a dispute over Virginia tax incentive renewals during a state budget impasse.
6/16/2026 • Community & Local Opposition • General
Louise Lucas led a Manassas town hall as Virginia lawmakers debated continuing data center tax breaks, with Prince William Digital Gateway facing local opposition and legal delays.
6/16/2026 • Project Finance & Incentives • General
Virginia lawmakers, led by Governor Abigail Spanberger and Senate Majority Leader Scott Surovell, debate keeping or removing the data center tax break as June budget negotiations continue.
5/25/2026 • Policy & Utility Planning • General
Virginia Sen. Glen Sturtevant asked Gov. Abigail Spanberger to halt new data center approvals statewide while Virginia evaluates grid, water, and infrastructure capacity.
8/3/2026 • Policy & Utility Planning • General
Virginia State Senator Glen Sturtevant asked Governor Abigail Spanberger to halt data center approvals statewide amid opposition in Hampton Roads and industry concerns about economic effects.
8/2/2026 • Policy & Utility Planning • General
Virginia lawmakers passed a budget adding a $0.011 per kilowatt hour energy use tax for data centers and directing DEQ to tighten cooling water requirements.
7/2/2026 • Policy & Utility Planning • General
Henrico County asked employees to conserve electricity as VEGPA members face a 24.9% Dominion Energy rate hike linked to Virginia data-center demand.
7/1/2026 • Policy & Utility Planning • General
Virginia lawmakers approved House Bill 30 in 2026-2028 budget negotiations, preserving the data center tax exemption and adding a capped electricity consumption fee.
6/23/2026 • Policy & Utility Planning • General
Virginia lawmakers approved a budget agreement Monday that preserves data-center tax exemptions and adds an electricity tax projected to raise $600 million yearly for the General Fund before Gov. Abigail Spanberger review.
6/22/2026 • Policy & Utility Planning • General
Virginia budget negotiators agreed on a two-year plan adding a rising electricity consumption tax on data centers, targeting $1.5 billion over four years before June 1 expiration.
6/20/2026 • Policy & Utility Planning • General
Ashley Kenneth of TCI says Virginia budget conferees added a temporary electricity consumption tax on data centers to raise about $1.2 billion.
6/20/2026 • Policy & Utility Planning • General
Virginia lawmakers reached an agreement in principle on a delayed budget after negotiations stalled over tax incentives for data centers.
6/19/2026 • Project Finance & Incentives • General
Virginia budget proposals in the House and Senate adjust data center tax incentives and add a proposed fee while environmental standards remain deferred.
6/17/2026 • Policy & Utility Planning • General
Don Scott-led Virginia House budget proposal on June 12, 2026 removes environmental standards tied to data center sales tax exemption and creates a commission.
6/14/2026 • Policy & Utility Planning • General
Louise Lucas and Mamie Locke urged Virginia to end data center tax exemptions at Hampton City Hall on June 14, days after a $300 million Newport News project started construction.
6/14/2026 • Project Finance & Incentives • General
Sen. Louise Lucas holds a June 15 Gainesville hearing as Virginia budget talks stall over whether to repeal the state's data center sales and use tax exemption.
6/13/2026 • Project Finance & Incentives • General
Virginia legislators debated a sales tax exemption for data center equipment and software as budget negotiations approached a July 1 fiscal 2027 deadline.
6/9/2026 • Policy & Utility Planning • General
Ohio lawmakers formed a Select Committee on Data Centers to review tax incentive costs and infrastructure impacts ahead of summer recess.
5/28/2026 • Policy & Utility Planning • General