Virginia Senator Criticizes Data Centers Over Construction Worker Wages
Virginia State Senator L. Louise Lucas has criticized data centers for allegedly drawing skilled labor away from residential construction by offering high wages. Her comments were made during state legislative hearings examining the environmental, social, and tax impacts of data centers in Virginia. This follows the recent enactment of a new state consumption tax on data centers' energy use.
Virginia State Senator L. Louise Lucas, a prominent Democratic leader and president pro tempore of the Virginia State Senate, has launched a new critique against data center companies, arguing they pay construction workers excessively high wages. During recent legislative hearings in Virginia, Senator Lucas questioned how data centers paying $100,000 to $250,000 annually might impact the labor force available for residential housing construction. Witnesses and experts present at the hearing did not immediately address her concerns, though panel chairman Virginia Delegate Luke Torian committed to finding answers.
This latest argument by Senator Lucas, who is known for advocating for higher wages and job growth and previously sponsored a $15 minimum wage bill, is part of ongoing efforts by data center opponents to slow industry development in Virginia. The state, particularly Loudoun County, is a major hub for data centers, an industry that a 2023 state study reported generates billions in labor income and GDP. Large labor unions, including the IBEW and United Association of Plumbers and Pipefitters, have opposed data center moratoriums, warning they could jeopardize investments and jobs.
Senator Lucas's renewed criticisms also touch upon previous concerns about data centers' impact on water sources and energy costs, despite studies contradicting these claims. The state legislative hearings are set to influence the implementation of a new, first-of-its-kind consumption tax on data centers for their energy use, signed into law by Virginia Governor Abigail Spanberger in June, which is projected to cost operators approximately $600 million annually. Senator Lucas has affirmed her commitment to this issue, stating she does not intend to back down.