Spanberger, House Democrats Agree $600 Million Data Center Energy Tax for 2 Years
Updated
Updated · POLITICO · Sep 18
Spanberger, House Democrats Agree $600 Million Data Center Energy Tax for 2 Years
3 articles · Updated · POLITICO · Sep 18
Summary
$600 million a year in new energy taxes on data centers was agreed by Spanberger and House Democrats, with the levy capped for two years.
The deal answers mounting backlash in Northern Virginia, where the world's densest cluster of data centers has fueled complaints over higher power bills, noise and air pollution.
Spanberger still refused to repeal existing tax incentives, arguing that scrapping them would break a contract with companies and damage Virginia's broader economic-development efforts.
The compromise follows a budget standoff that nearly triggered Virginia's first government shutdown, and it sends a legislative panel to review data-center subsidies before next year's session.