Va.’s data center boom shows how hard it is for lawmakers to rein in industry
News ClipArizona Capitol Times·Ashburn, Loudoun County, VA·3/12/2026
Virginia's data center boom highlights the challenges lawmakers face in trying to rein in the industry. Critics argue the massive data centers are straining the power grid, threatening the environment, and receiving lucrative tax breaks, but the industry's fierce opposition has made it difficult to pass meaningful reforms. Democratic lawmakers have proposed legislation to curb data center growth, including repealing sales tax exemptions. However, industry groups and some Democratic leaders are resisting these efforts, showing how entrenched the data center industry has become in Virginia.
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Gov: Virginia General Assembly, Loudoun County Board of Supervisors, Virginia Department of Environmental Quality (DEQ)
Virginia is illustrating how difficult it is for lawmakers to impose restraints on the established data center industry. The state's northern exurbs host over 250 data centers, handling 70% of global internet traffic. While the industry touts job creation and investment, Democratic lawmakers like Sen. Danica Roem are concerned about energy, environmental, and other impacts. However, the industry's intense opposition has dimmed the chances of substantive legislation passing. The state provides over $1 billion in tax breaks to tech giants like Amazon, Meta, and Microsoft, which Roem and others find concerning. Other states have similar data center tax exemptions, hoping to attract the industry's revenue and jobs. Virginia localities beyond "Data Center Alley" are also seeking to attract data center projects, but lawmakers like Del. Josh Thomas argue the industry needs more regulation to protect ratepayers and communities.