
Pittsylvania County has 2,050 jobs at risk in data center tax debate. Will a change in law cause them to disappear?
News ClipCardinal News·Pittsylvania County, VA·4/21/2026
Virginia is debating whether to accelerate the end of a state tax abatement for data centers, moving the sunset from 2035 to 2027. This decision directly jeopardizes a proposed $73 billion data center investment by Stack Americas in Pittsylvania County, projected to create 2,050 jobs. The debate pits public opposition to data centers' energy demands against the economic benefits for rural areas.
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Gov: Virginia State Legislature, Virginia Senate Finance Committee, Virginia House of Delegates, Danville-Pittsylvania Regional Industrial Facilities Authority, Virginia Secretary of Finance
The article discusses a contentious debate in Virginia's state legislature regarding the future of tax abatements for data centers. Senate Finance chair Louise Lucas (D-Portsmouth) is pushing to end the state's data center tax exemption by 2027, instead of the planned 2035 sunset, citing concerns about the estimated $1.9 billion annual cost to the state and growing public opposition to data centers' energy demands. Conversely, House negotiators advocate for maintaining the tax break, fearing negative impacts on the state's thriving data center industry, which contributes significantly to the state's GDP and local job markets.
Secretary of Finance Mark Sickles highlighted the immediate economic consequences of such a policy change, revealing that a planned $73 billion data center project by Stack Americas in Pittsylvania County is now in jeopardy. This project, which promises 2,050 jobs over 30 years, is contingent on the continuation of the tax incentive. Kevin Hughes, Chief External Affairs Officer for Stack Americas, confirmed that the tax exemption is "essential to the viability of Stack’s proposed data center campus at Berry Hill," a site already approved for sale by the Danville-Pittsylvania Regional Industrial Facilities Authority.
The debate presents a political dilemma for Democrats, as public sentiment against data centers is strong, particularly in Northern Virginia, while economically struggling rural areas like Southside Virginia eagerly seek the jobs and tax revenue data centers bring. The potential loss of a specific, high-profile project like Stack Americas' Berry Hill campus due to a change in state tax policy would provide significant political ammunition for Republicans in future elections, contrasting sharply with the general abstract nature of the statewide data center discussion.