Virginia Lawmakers Approve Data Center Energy Tax in Budget Deal
Virginia lawmakers have approved budget legislation (HB 30) that introduces an unprecedented tax on data centers' electricity consumption. The measure, which also preserves a sales tax exemption, is now awaiting Governor Abigail Spanberger's signature. This action resolves a contentious issue among state Democratic leaders.
Virginia lawmakers have passed budget legislation, House Bill 30, which includes a new tax on data centers' electricity consumption. This measure marks an unprecedented move in the state and addresses a deeply divisive issue among Virginia's Democratic leadership.
The legislation also maintains a sales tax exemption for data centers, a provision that Senate lawmakers had previously sought to repeal. The bill now advances to Democratic Governor Abigail Spanberger, who has publicly committed to signing a budget bill before the June 30 deadline.
Governor Spanberger characterized the legislation as a compromise. In a statement, she affirmed that the new tax would "ensure this industry pays its fair share and does not drive up costs for Virginia families," indicating the state's intent to balance industry growth with consumer impact.