Data Centers Continue to Drive Budgets – Not Citizens’ Rights 

WARRENTON, Va. (June 23, 2026) – Despite poll after poll showing bipartisan statewide opposition to uncontrolled data center growth and accumulating evidence of direct and indirect impacts on air, water, noise, property rights and utility rates, the General Assembly has once again kicked the can down the road and put data centers ahead of the people of Virginia. 

Legislators and the governor are continuing the $2-billion-per-year tax exemption for data centers at a time when other states experiencing rapid data center growth have taken responsible action. Michigan, Georgia, New York, Pennsylvania, South Carolina, and Vermont  have all introduced moratorium legislation that would allow better planning and informed decisionmaking. Similar legislation is pending in other states. 

Instead, the General Assembly and the governor are proposing an “electricity use tax” on data centers that is just one-third of the data center tax exemption and gives a free pass to data centers generating their own power behind the meter. 

“Sadly, here in Virginia, our leaders still have no plan to assess the aggregate impacts of data centers on our communities, our land, and our environment.  To allow further impacts before we have better information and a plan for action is irresponsible. On top of that, Virginia continues to give away billions of uncollected tax revenue to the richest companies in the world, while ignoring growing outrage from citizens effectively subsidizing uncontrolled data center growth,” said Piedmont Environmental Council President Chris Miller. 

One of the most pressing issues yet to be addressed in the General Assembly or the State Corporation Commission is establishing policies that protect citizens from paying for the infrastructure being built only for data centers. The budget compromise fails to include clear direction to control energy demand and to allocate to data centers 100 percent of the cost of more than 200 substations and thousands of miles of transmission lines that would be unnecessary but for data center demand.

Without revised cost allocation formulas, residents and other businesses will pay hundreds more per month and thousands more per year for data center infrastructure in the not so distant future. The SCC has the authority to make decisions about how data center costs are allocated, but thus far has not, deferring decisions for years.  

“It is not complicated: the SCC Commissioners need to assign data center costs to data centers. There is no scenario in which average Virginians should be paying the business expenses of the richest and most aggressive companies in the world. Until the governor and General Assembly prioritize citizens over supporting an uncontrolled and unregulated industry, the risk for astronomical electricity bills remains high, along with impacts on Virginia property owners, communities and conservation resources” said Miller. “Strong action is needed to protect Virginian’s life, liberty and pursuit of happiness.”

Media Contact: Mike Doble, The Piedmont Environmental Council
[email protected]; 703-579-7963

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