Virginia General Assembly passes budget with new data center energy consumption tax

News Clip0:24The Dogwood·Fredericksburg, Fredericksburg City County, VA·6/25/2026

Virginia State Delegate Joshua Cole discusses the General Assembly's debate over data center taxation. While lawmakers seek fair contributions, the recently passed state budget maintained a significant tax break but introduced a new energy consumption tax for data centers. A state study on data centers is also anticipated.

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Gov: State Del. Joshua Cole, Virginia General Assembly
State Del. Joshua Cole (D-Fredericksburg) says most state lawmakers agree data centers should pay their share but differ on what that looks like in practice. Cole is looking forward to seeing what recommendations come from a forthcoming state study on data centers. State budget talks had broken down over whether to end a more than $1 billion tax break for data centers. The General Assembly ultimately passed a budget that keeps the tax break in place and created a new energy consumption tax for data centers. Want more state politics news? Subscribe to our newsletter Virginia Capital. https://vadogwood.com/va-capital-newsletter/