Virginia budget battle stalls over data center policy ahead of deadline
Virginia's state budget negotiations are deadlocked with a government shutdown looming, primarily due to disagreements over policies concerning the data center industry. The House and Governor Abigail Spanberger propose creating a commission to study data center impacts, while the Senate, led by Senator Louise Lucas, insists on immediate action, including establishing a tiered state impact fee on data centers and eliminating a sales tax exemption.
Virginia's budget negotiations are at a standstill, with a government shutdown looming as the July 1st deadline approaches. The primary sticking point remains the approach to the data center industry.
Governor Abigail Spanberger and the House of Delegates are advocating for the creation of a Data Center Accountability Commission. This commission would study the effects of the data center industry in Virginia, aiming to inform future legislative action in the next General Assembly session.
However, top Senate negotiator Senator Louise Lucas has expressed strong opposition to this delay, stating that Virginians expect immediate action to protect their interests over those of "wealthy corporations." Lucas, who previously sought to eliminate the sales tax exemption currently enjoyed by data centers, now proposes establishing a tiered state impact fee on data centers.
Tensions are high, with Governor Spanberger noting on June 15th that she had not yet seen any legislative text outlining the Senate's proposal, despite the tight timeframe. Lucas remains defiant, asserting the House and Governor need to align with the Senate's position.