The clock is ticking away toward the end of Virginia's legislative session, and state lawmakers are still at odds over whether to eliminate a tax break for data centers that costs the state about $1.6 billion per year. The deal to not charge sales tax to data centers is part of what brought developers here and made Virginia the "data center capital of the world."
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Sen. Russet Perry, D-Loudoun, speaks at a news conference Feb. 1, 2024, at the General Assembly Building in Richmond.
Carol Bauer, president of the Virginia Education Association, speaks during a gathering in 2022 near the James Monroe building in Richmond.
House Speaker Don Scott speaks during the investiture ceremony of Chief Justice Cleo E. Powell in the chamber of the Supreme Court of Virginia on Monday.
"This investment would benefit Virginians statewide without imposing fees or tolls on them at a time of uncertainty," Senate Finance Chair Louise Lucas, D-Portsmouth, said of the Senate budget proposal, which would repeal the state sales tax exemption for data centers and increase the regional lodging tax.
Not to be missed: DATA CENTERS IN VIRGINIA | TIMES-DISPATCH SPECIAL REPORT
Read the stories from the Richmond Times-Dispatch's three-day series on data centers and the key issues they pose.
Proponents say data centers bring localities enormous revenues and opportunities. Opponents raise concerns about their big demands for power and compatibility with neighborhoods.
Data center developers are now eyeing the Richmond area. While counties welcome the sites' tax revenues, residents' concerns have prompted developers to withdraw some proposals and Henrico imposed further oversight.
These buildings that house key IT infrastructure are big, expensive and need a lot of energy but promise big revenues for localities.
The state's telecommunications infrastructure, tax breaks, workforce and officials' welcoming attitude have helped make Virginia the world's data center capital.
The 451 now running in Virginia, home to the largest concentration of data centers in the world, currently use 3,583 megawatts, or enough electricity to power nearly 896,000 homes.
Virginia’s data center boom means new terms to understand. Here are some key words and phrases.
The state's data center boom is the subtext to increasingly intense politicking over longtime Virginia issues — climate change, electricity rates and the powers of local governments.
President Donald Trump has issued a series of executive orders removing barriers to expanding the electric grid's ability to serve data centers necessary to advance artificial intelligence and other power-hungry technologies.
NewsVu: DATA CENTERS IN VIRGINIA | RICHMOND TIMES-DISPATCH SPECIAL REPORT
IF YOU MISSED IT: Read The Times-Dispatch's special report on data centers in Virginia by aiming your cellphone camera at the QR code and tapp…
