New report reveals data centers cost VA schools millions

A recent report by Good Jobs First, an organization advocating for corporate accountability, reveals that tax breaks granted to data center developments across Virginia are projected to cost the state more than $2 billion in 2025. The report also found that these tax abatements cost Virginia schools over $250 million in the preceding year. Elena Schlossberg, executive director of the Coalition to Protect Prince William County, argues that Virginia residents are already financially supporting data centers through significant utility rate hikes, which she attributes to the industry's substantial energy demands. She characterized the situation as the "wealthiest industry in the world" receiving state subsidies, while ratepayers bear the costs of extensive transmission line infrastructure and new power generation. According to the Environmental and Energy Study Institute, electricity price increases linked to data centers impacted approximately 40 million customers nationwide last year, with Virginians experiencing over 250% price hikes in the past five years. The findings emerge as Virginia lawmakers are engaged in a contentious debate regarding the future of data center tax incentives. Leaders in the State Senate are pushing to eliminate these breaks to reallocate funds toward education and transportation. Conversely, leaders in the House of Delegates favor retaining the incentives but propose linking them to stringent environmental standards. Schlossberg believes the landscape has changed significantly since Virginia initially sought these developments. She contends that new information necessitates a re-evaluation of the relationship between data center developers and policymakers, urging elected leaders to adapt to the current realities.