Data centers, GRTC fares dominate forum with Richmond lawmakers

Richmond-area General Assembly members faced scrutiny from constituents regarding the financial and environmental effects of data centers during a post-legislative session town hall held at the Virginia Museum of History and Culture. Attendees expressed concern over rising utility bills and water consumption linked to the industry. Lawmakers responded by outlining proposed legislation designed to shift more infrastructure and peak-usage costs directly to data centers, potentially lowering residential bills by 3.4% while increasing data center costs by 15%, according to Inside Climate News. Additionally, new legislation would mandate water utilities to report data center water usage to address environmental concerns. Sen. Lamont Bagby (D-Henrico) emphasized the goal of holding data centers accountable for their fair share, though he also acknowledged the industry's role in job creation and meeting demand for AI and technology. The data center industry remains central to an unresolved budget dispute between Gov. Abigail Spanberger, the House, and the Senate, with the Senate proposing to eliminate nearly $1 billion in industry tax breaks, a move opposed by the House.