{"id":824,"date":"2026-07-01T10:41:40","date_gmt":"2026-07-01T10:41:40","guid":{"rendered":"https:\/\/modernhomejournals.com\/?p=824"},"modified":"2026-07-01T10:41:40","modified_gmt":"2026-07-01T10:41:40","slug":"the-battle-line-has-been-drawn-around-virginias-data-centers","status":"publish","type":"post","link":"https:\/\/modernhomejournals.com\/?p=824","title":{"rendered":"\u2018The Battle Line Has Been Drawn\u2019 Around Virginia\u2019s Data Centers"},"content":{"rendered":"
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For decades, the world\u2019s densest cluster of data centers has grown in Northern Virginia with little scrutiny and generous incentives.<\/p>\n

Read more Chuck Schumer Hits His Limit<\/a><\/p>\n

That changed this spring, when state lawmakers seriously considered taking away a key tax exemption that saved the state\u2019s data centers $1.9 billion<\/u><\/span> last year and doesn\u2019t expire until 2035. For a while, it looked like Virginia would have its first-ever state government shutdown over whether to sunset the incentive early.<\/p>\n

Policymakers ultimately reached a compromise to avert a shutdown \u2014 and send a warning shot to the industry \u2014 by signing off on a budget Monday containing the first-ever statewide tax on data center energy consumption. Democratic Gov. Abigail Spanberger praised the initiative.<\/p>\n

\u201cVirginia has a responsibility to make sure the data center industry is paying their fair share for the energy they use,\u201d she said in a Monday evening address<\/u><\/span>. \u201cBut this is only the beginning.\u201d<\/p>\n

Even activists and lawmakers who have been pushing for years to rein in Northern Virginia\u2019s data center industry were surprised by how quickly cracks appeared in the foundation of what felt like a stable relationship.<\/p>\n

Northern Virginia is home to more than 300 data centers. About 200 more are expected to go up in the coming years. Loudoun County, specifically, has the world\u2019s highest concentration<\/u><\/span> of data centers, relying on the industry for almost half<\/u><\/span> its property tax revenue.<\/p>\n

But Virginia voters have quickly soured on the issue. A recent Washington Post-Schar School poll<\/u><\/span> of more than 1,100 found just 35% would be comfortable with a new data center going up in their community, putting pressure on politicians to effectively choose between the interests of their constituents and those of the data center operators whose business they depend on.<\/p>\n

\u201cThe battle line has been drawn around that question in Virginia,\u201d said Brennan Gilmore, executive director of Clean Virginia, a nonprofit advocacy group focused on political corruption and utilities in the state. \u201cAnd folks are lining up on either side of it.\u201d<\/p>\n

\n<\/div>\n

Troubleshooting<\/b><\/h2>\n

Data centers are doing damage control. Virginia Connects, the state-focused arm of the Data Center Coalition, whose members include<\/u><\/span> Amazon Web Services, Google and Microsoft, has spent hundreds of thousands of dollars in recent weeks on television and digital ads touting the economic benefits of data centers and downplaying criticisms, including about the industry\u2019s water usage.<\/p>\n

Since June 9, Virginia Connects has spent at least $708,000 to run television ads during prime time programs like the , according to a NOTUS analysis of Federal Communications Commission documents. Around of that total is for ads scheduled for October and November during shows like \u201cGeneral Hospital,\u201d \u201cJeopardy!\u201d and \u201cWheel of Fortune.\u201d<\/p>\n

The coalition has also spent at least $19,000 on Facebook<\/u><\/span> ads since the end of May, and an undisclosed amount of money running ads on Google<\/u><\/span> since last August.<\/p>\n

Nicole Riley, director of Virginia government affairs for the Data Center Coalition, characterized efforts to axe the exemption as \u201chastily and poorly conceived tax hikes\u201d in a statement, warning they would \u201craise costs and prices, hurt Virginia\u2019s business reputation, violate commitments the Commonwealth has made, and stifle job creation and investment when Virginia needs both.\u201d<\/p>\n

Some labor unions have linked arms with data centers, an industry that a 2026 state study found<\/u><\/span> has created and maintained 31,500 jobs \u2014 including around 22,000 indirect jobs \u2014 to date in Virginia. An earlier found that in 2023, the data center industry provided approximately 74,000 jobs, with most of those coming during the construction phase.<\/p>\n

Don Slaiman, director of community relations at IBEW Local 26, said that he finds opposition to data centers \u201cperplexing and disappointing\u201d in a statement shared by the Data Center Coalition with NOTUS.<\/p>\n

\u201cData centers have created tens of thousands of high-paying union jobs for blue collar workers in construction, upgrading, retrofitting, and monitoring, as well as in the pre-fab factories that are opening around the state,\u201d Slaiman wrote.<\/p>\n

But Virginia\u2019s largest teachers\u2019 union, the Virginia Education Association, backed the proposal<\/u><\/span> to do away with the tax exemption, arguing the revenue could go toward supporting the state\u2019s education system.<\/p>\n

While Virginia lawmakers did not do away with the exemption, they did pass the first-ever statewide tax on energy consumption by data centers, a key concern for constituents<\/u><\/span>. Under the new tax, data center operators will have to pay $0.11 per kilowatt-hour of electricity used. The tax is capped at $600 million per year.<\/p>\n

Read more DOGE Cut Off Small Town America\u2019s 250th Birthday Money<\/a><\/p>\n

\u201cIt\u2019s not capped in terms of how much is collected, it\u2019s just capped in terms of how much is kept, which means that we\u2019re actually going to know how much electricity these folks are using, and what the potential value of that is to the Virginia economy,\u201d said Delegate John McAuliff, a Democrat whose district includes western Loudoun County.<\/p>\n

The energy consumption tax is an undeniable win for data center opponents. While some say it doesn\u2019t go far enough to make sure data centers pay their \u201cfair share,\u201d a common refrain<\/u><\/span> from Spanberger \u2014 they say it\u2019s a good first step, and one they never would have imagined accomplishing at the beginning of the session.<\/p>\n

\n<\/div>\n

Pumping the Brakes on Perks<\/b><\/h2>\n

Spanberger, who walked a tightrope on this political issue during her gubernatorial campaign, refused to support the state Senate\u2019s efforts to eliminate the tax early. She told Cardinal News<\/u><\/span> in May that it would send the wrong message to the business community and open the state up to \u201ctotally foreseeable legal action.\u201d A spokesperson for Spanberger did not respond to requests for comment.<\/p>\n

That position put the governor at odds with one of her biggest donors: Clean Virginia gave $1.2 million to Spanberger\u2019s gubernatorial campaign in 2024 and 2025, according to the Virginia Public Access Project<\/u><\/span>.<\/p>\n

\u201cSimply stated, I think she\u2019s wrong with the tax exemption,\u201d Gilmore said.<\/p>\n

Virginia has offered to allow data centers that make certain investments tax exemptions<\/u><\/span> for servers, routers, chillers, backup generators, water storage tanks and pumps, and a laundry list of other equipment since 2010. The data center landscape looked very different back then, and critics say the exemption, the largest in Virginia\u2019s history, has ballooned far beyond original projections<\/u><\/span>.<\/p>\n

Virginia is far from the only state that offers both this exemption and other economic incentives to attract data centers. But other states, including Arizona, Ohio and Illinois<\/u><\/span>, have recently paused their incentives.<\/p>\n

Even in Texas, which has been competing with Virginia<\/u><\/span> to attract new data centers, Republican Gov. Greg Abbott asked state regulators to prioritize<\/u><\/span> data center regulations including repealing sales tax exemptions. The Texas Tribune estimates<\/u><\/span> almost 250 new data center projects are in the works there.<\/p>\n

Federal officials have also struggled with data centers\u2019 growing unpopularity. Some like Sen. Bernie Sanders (I-Vermont) have endorsed a nationwide moratorium on their construction. Others, like Sen. Chris Van Hollen (D-Maryland), have introduced legislation to make operators pay for the energy cost of running these facilities.<\/p>\n

\u201cConsumers are worried that they\u2019re going to be put in a position where they\u2019re subsidizing private investment \u2014 and they shouldn\u2019t,\u201d a person familiar with the industry told NOTUS. \u201cThe important thing that we can do as an industry is assure ratepayers that the cost allocation will be fair \u2026 It\u2019s simple, it\u2019s fundamental, it\u2019s easy.\u201d<\/p>\n

That person, a trade group representative who requested anonymity to share internal deliberations, said that voluntary agreements like President Donald Trump\u2019s included<\/u><\/span> in the Ratepayer Protection Pledge earlier this year are beginning to address some of these issues.<\/p>\n

Rep. Suhas Subramanyam, a Virginia Democrat whose district includes Loudoun County, believes that the state has become too reliant on the industry.<\/p>\n

\u201cWe have too many data centers at this point,\u201d Subramanyam, who supports a state-level data center moratorium, told NOTUS. \u201cThe developers are making a ton of money, so they have no reason to stop, and the local governments aren\u2019t doing enough to stop the expansion.\u201d<\/p>\n

Virginia policymakers are proposing more policies that could impact data center operators than any other state, Lauren Bridges, an assistant professor of media studies at the University of Virginia and creator of the Data Center Policy Database<\/u><\/span>, told NOTUS.<\/p>\n

While it may be difficult for lawmakers to walk back the promises made and the data center projects already in the works, such efforts to regulate data centers in the state aren\u2019t coming \u201ctoo late,\u201d Bridges said.<\/p>\n

\u201cI certainly don\u2019t think it\u2019s hopeless,\u201d she said. \u201cI don\u2019t think that people should give up or not consider politics as a real avenue for change.\u201d<\/p>\n

Read more Mark Kelly Backs Another Hegseth Foe In Latest Endorsement Push<\/a><\/p>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Souring public sentiment led state lawmakers to grapple with how to regulate the industry and create a first-of-its-kind tax.<\/p>\n","protected":false},"author":1,"featured_media":823,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[29],"tags":[],"class_list":["post-824","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-metro"],"yoast_head":"\n\u2018The Battle Line Has Been Drawn\u2019 Around Virginia\u2019s Data Centers - Modern Home Journals<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/modernhomejournals.com\/?p=824\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"\u2018The Battle Line Has Been Drawn\u2019 Around Virginia\u2019s Data Centers - Modern Home Journals\" \/>\n<meta property=\"og:description\" content=\"Souring public sentiment led state lawmakers to grapple with how to regulate the industry and create a first-of-its-kind tax.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/modernhomejournals.com\/?p=824\" \/>\n<meta property=\"og:site_name\" content=\"Modern Home Journals\" \/>\n<meta property=\"article:published_time\" content=\"2026-07-01T10:41:40+00:00\" \/>\n<meta name=\"author\" content=\"admin\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"admin\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"7 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/modernhomejournals.com\\\/?p=824#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/modernhomejournals.com\\\/?p=824\"},\"author\":{\"name\":\"admin\",\"@id\":\"https:\\\/\\\/modernhomejournals.com\\\/#\\\/schema\\\/person\\\/533de239efc09a2ab59959cc1bff86d0\"},\"headline\":\"\u2018The Battle Line Has Been Drawn\u2019 Around Virginia\u2019s Data Centers\",\"datePublished\":\"2026-07-01T10:41:40+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/modernhomejournals.com\\\/?p=824\"},\"wordCount\":1448,\"commentCount\":0,\"image\":{\"@id\":\"https:\\\/\\\/modernhomejournals.com\\\/?p=824#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/modernhomejournals.com\\\/wp-content\\\/uploads\\\/2026\\\/07\\\/72c499c7180af0a065ea84224fdd9cde-scaled.jpg\",\"articleSection\":[\"Metro\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\\\/\\\/modernhomejournals.com\\\/?p=824#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/modernhomejournals.com\\\/?p=824\",\"url\":\"https:\\\/\\\/modernhomejournals.com\\\/?p=824\",\"name\":\"\u2018The Battle Line Has Been Drawn\u2019 Around Virginia\u2019s Data Centers - Modern Home Journals\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/modernhomejournals.com\\\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\\\/\\\/modernhomejournals.com\\\/?p=824#primaryimage\"},\"image\":{\"@id\":\"https:\\\/\\\/modernhomejournals.com\\\/?p=824#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/modernhomejournals.com\\\/wp-content\\\/uploads\\\/2026\\\/07\\\/72c499c7180af0a065ea84224fdd9cde-scaled.jpg\",\"datePublished\":\"2026-07-01T10:41:40+00:00\",\"author\":{\"@id\":\"https:\\\/\\\/modernhomejournals.com\\\/#\\\/schema\\\/person\\\/533de239efc09a2ab59959cc1bff86d0\"},\"breadcrumb\":{\"@id\":\"https:\\\/\\\/modernhomejournals.com\\\/?p=824#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\\\/\\\/modernhomejournals.com\\\/?p=824\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/modernhomejournals.com\\\/?p=824#primaryimage\",\"url\":\"https:\\\/\\\/modernhomejournals.com\\\/wp-content\\\/uploads\\\/2026\\\/07\\\/72c499c7180af0a065ea84224fdd9cde-scaled.jpg\",\"contentUrl\":\"https:\\\/\\\/modernhomejournals.com\\\/wp-content\\\/uploads\\\/2026\\\/07\\\/72c499c7180af0a065ea84224fdd9cde-scaled.jpg\",\"width\":2560,\"height\":1707,\"caption\":\"Virginia Gov. 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