Virginia Budget Prioritizes Data Centers Over Citizens’ Rights

The Piedmont Environmental Council announced that Virginia’s General Assembly and the governor are continuing a $2-billion-per-year tax exemption for data centers while proposing an “electricity use tax” equal to one-third of that exemption.

• Main announcement/action: The PEC criticizes the continuation of a $2-billion-per-year tax exemption for data centers and highlights a proposed “electricity use tax” that is one-third of that exemption; the PEC calls for the Virginia State Corporation Commission (SCC) to assign data center infrastructure costs to data centers rather than ratepayers.
• Background and other details: The statement notes the budget compromise does not direct allocation of costs for more than 200 substations and thousands of miles of transmission lines tied to data center demand; PEC President Chris Miller urges SCC action and references other states (Michigan, Georgia, New York, Pennsylvania, South Carolina, Vermont) that have proposed moratorium legislation on data center growth.