Virginia Lawmakers Propose Data Center Reform Bills Amid Industry Growth
Virginia lawmakers have introduced several data center reform bills in response to local opposition and significant tax exemptions totaling over $1.9 billion in fiscal year 2025. Key proposals include requiring reviews of data center impacts on the electric grid and preventing utility costs from being passed to ratepayers. As the industry generates substantial local tax revenue and jobs, lawmakers are also considering conditions for tax breaks related to energy efficiency and clean energy initiatives.
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Virginia lawmakers have introduced multiple data center reform bills in 2026 due to local opposition and tax policy changes. In fiscal year 2025, data centers received over $1.9 billion in tax exemptions.
Key proposals include HB155, requiring the State Corporation Commission to review data center impacts on the electric grid, and HB503, which would prevent utility costs from being passed to ratepayers for infrastructure serving data centers. Other bills focus on establishing a demand response program and limiting new diesel generators.
The growing data center industry has attracted significant investment, creating an estimated $1.3 billion in local tax revenue and 74,000 jobs annually. Lawmakers are considering conditions on tax breaks for energy efficiency and clean energy purchases.
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