As Virginia Officials Weigh Data Center Pushback, Report Details Industry’s Public Service Funding
Data center tax revenue in Henrico County, Virginia, funds an affordable housing program for first-time homebuyers. This comes as other Virginia localities, including Loudoun County, face increasing public pushback against data center growth, leading to discussions about moratoriums and policy shifts statewide due to concerns over power demands and siting.
In Henrico County, Virginia, data center tax revenue is directly fueling an Affordable Housing Trust Fund, helping first-time homebuyers like Yvettrise Hoskie with down payments. Eric Leabough, Henrico community revitalization director, stated the fund aims to make 750 new homes available within five years, with Supervisor Tyrone Nelson championing its creation.
Meanwhile, other Virginia localities are grappling with the impacts of data center proliferation. A report by the tech industry-funded Chamber of Progress highlights how Loudoun County has lowered property taxes and boosted public services due to data center revenue, even while facing growing resident opposition over noise, water use, and power infrastructure.
Amidst this opposition, the Loudoun County Board of Supervisors is set to vote on September 15 on a temporary moratorium on new data center applications while comprehensive zoning plans are reviewed. Localities like Suffolk, Front Royal, and Chesapeake are also considering policy changes to limit industry growth. Statewide, discussions continue regarding data center tax exemptions, which were retained in the recent state budget with new environmental and regulatory changes. Concerns also persist regarding data centers building their own, often gas-powered, electricity generation, potentially hindering Virginia’s clean energy goals under the Virginia Clean Economy Act. Governor Abigail Spanberger expressed reservations about this trend, emphasizing the need for advanced generation efforts within the state's energy framework.