House leaders propose data center commission

Virginia House of Delegates leaders, including Speaker Don Scott and House Appropriations Chairman Luke Torian, have unveiled a compromise budget proposal that includes the establishment of a Virginia Commission on Data Center Accountability. This proposed 13-member commission would be tasked with reviewing data center incentives, energy demand, infrastructure costs, environmental impacts, workforce issues, and community concerns across the state. The commission is designed to include a diverse group of stakeholders, such as lawmakers, administration officials, a representative from the State Corporation Commission, and members appointed by the governor representing data center customers, utilities, environmental organizations, skilled-trades organizations, and localities.

Crucially, the House's proposal maintains Virginia's existing sales and use tax exemption for qualifying data centers, a point of contention in the current budget negotiations. Governor Abigail Spanberger has endorsed the House's budget proposal, stating her support for its clear roadmap to evaluate the impact of data centers and review state incentives. The commission is required to hold at least four public meetings, conclude its work by September 30, and submit a final report by November 1.

The legislative move comes as lawmakers work to finalize a budget agreement before the June 30 deadline. Senate Finance and Appropriations Chairwoman Louise Lucas, however, criticized the House's public release of the proposal, citing a lack of continued discussions with Senate negotiators. Lucas highlighted that the Senate's counter-proposal would establish a tiered state impact fee on data centers, projected to generate $1.7 billion in revenue, in contrast to the House's commission study approach.