Virginia senator's Data Center Listening Tour spotlights concerns about growing industry
Virginia Senate President Louise Lucas held a data center listening tour in Chesterfield County, addressing community concerns about the industry's environmental impact, energy and water usage, and tax incentives. Speakers raised issues about communities absorbing costs while corporations receive tax breaks without guaranteed long-term returns. Industry representatives countered with data on tax contributions and job creation.
Virginia Senate President Louise Lucas is continuing her data center listening tour across the state, recently holding an event at Manchester High School in Chesterfield County. The Portsmouth Democrat emphasized the need for data centers to be properly sited, responsibly regulated, and to avoid polluting air and water or abusing energy and water systems in ways that harm local families and communities.
Among the speakers was Chesterfield County School Board Member Dominique Chatters, who highlighted concerns from Black and Brown communities about the costs absorbed by localities while corporations receive substantial tax incentives without guaranteed long-term returns or substantial local jobs. She argued that taxing data centers could help build up these communities.
The data center industry, however, pushed back on environmental and financial claims. While the state may not tax data centers broadly, localities do, contributing over $5 billion in state and local taxes in the past two years. Don Slaiman of the electrician's union IBEW26 also noted the creation of tens of thousands of data center construction jobs in Virginia, warning against losing these six-figure careers.
The discussions come as state legislators and Governor Abigail Spanberger work to agree on a budget by July 1, with the implications of data center development and taxation likely playing a role in the ongoing negotiations.