Time is winding down, but data centers are still a big topic of debate in Richmond

Time is winding down, but data centers are still a big topic of debate in Richmond

News ClipWVTF·Richmond, Henrico County, VA·3/13/2026

Data centers are a major topic of debate in the Virginia General Assembly, with discussions around where and when they can be built, what information local governments should consider before zoning decisions, and whether they should be exempt from taxes. Legislation has been proposed to require new data centers to use low-emission generators and for local governments to consider specific details about data center proposals, but the biggest unresolved issue is a tax exemption worth over $1 billion that the Senate wants to eliminate but the House wants to keep.

zoningenvironmentalgovernmentelectricity
Gov: Loudoun County Board of Supervisors, Virginia General Assembly, Virginia DEQ
As the Virginia General Assembly's legislative session nears its end, the politics of data centers are dominating the discussions. There are several key issues being debated. First, there are questions around where and when data centers can be built, and how much information local governments should consider before making zoning decisions. Delegate John McAuliff has a bill that would require new data centers to use low-emission generators, which he sees as a first step in ensuring the safety of nearby communities. Meanwhile, Delegate Josh Thomas has a bill that would require local governments to look at specific details like sound quality studies and energy infrastructure before approving data center projects. The biggest unresolved issue, however, is a massive tax exemption for data centers worth over $1 billion. The Senate wants to get rid of this exemption, but the House is fighting to keep it, causing a stalemate in the budget discussions as the session heads into its final hours this weekend. Overall, the debate around data centers in Virginia highlights the tensions between economic development, environmental concerns, and local control that often arise around this type of infrastructure project.