Taxpayers group: Data center myths holding Virginia back
An article from the Taxpayers Protection Alliance (TPA) argues against common myths regarding data center water and electricity consumption in Virginia. It refutes claims that data centers significantly strain the state's resources, citing data that shows they account for only 1.4% of water usage and 4.6% of electricity consumption. The author advocates for continued digital investment and a competitive regulatory environment, warning against heavy-handed restrictions and taxes.
The Taxpayers Protection Alliance (TPA) has published an analysis challenging common perceptions about data center impacts in Virginia, asserting that current policy discussions are based on misinformation. Ross Marchand, executive director of TPA, highlights that despite data centers contributing billions in investment and tax revenue, critics are pushing for restrictions and moratoriums, influenced by claims of excessive water and electricity use.
The TPA's findings indicate that in 2025, data centers accounted for only 1.4% of Virginia's total water usage, with the vast majority going to residential, agricultural, and other commercial operations. Similarly, regarding energy, data centers are projected to consume just 4.6% of all electricity in Virginia in 2025, even amidst significant digital expansion. The report notes that Virginia's large-load pricing mechanisms require data centers to pay a disproportionate share of transmission capacity costs, effectively subsidizing residential rates.
Marchand argues that these figures debunk the notion that data centers pose an unsustainable burden on the state's resources or electric grid. He contends that rather than imposing taxes, such as the recently enacted statewide 1.1 cent per kilowatt-hour tax on data centers, Virginia should foster open competition, modernize infrastructure, and promote reliable power generation to meet growing energy demands. The author concludes by advocating for policies that encourage digital investment and competitive regulatory environments to support job creation and local budgets.