State senator launches listening tour on data center industry

Virginia State Senator Louise Lucas, Chair of the Senate Finance Committee, has initiated a statewide listening tour to engage residents on the future of the data center industry. The tour commenced in Hampton, Virginia, where Senator Lucas was joined by State Senator Mamie Locke. This effort aims to inform residents and gather input on the rapidly growing data center sector, particularly concerning tax incentives, economic development, and environmental considerations.

The senators expressed their views on how Virginia should manage the significant tax incentives currently benefiting the data center industry. Senator Locke highlighted that these entities are largely exempt from paying sales taxes to the Commonwealth. While a recent report indicated that data centers contribute nearly $40 billion in economic output and support over 112,000 jobs in Virginia, Lucas and Locke argue that the public needs to understand the full implications, including the cost to taxpayers. They are not opposed to technology but question the extent of public subsidies.

The tour unfolds as Governor Abigail Spamberger and the Virginia General Assembly continue intricate negotiations on the state budget, with a deadline looming on June 30. Lucas has publicly accused Governor Spamberger of shifting demands during these budget talks, while Spamberger's administration maintains it sought concrete proposals from Senate leaders that were not provided. The listening tour is expected to visit various communities across Virginia in the coming weeks as lawmakers work towards a final budget agreement.