Virginia Approves First-of-Its-Kind Energy Tax on Data Centers

Virginia lawmakers passed budget legislation (HB 30) Monday that imposes an unprecedented tax on data centers’ electricity consumption, resolving an issue—for now—that sharply divided Democratic leaders in the state.

The measure, which also maintains a sales tax exemption that Senate lawmakers wanted to repeal, now heads to Gov. Abigail Spanberger (D), who has pledged to sign a budget bill by a June 30 deadline.

Spanberger called it a compromise proposal, saying in a statement that it will “ensure this industry pays its fair share and does not drive up costs for Virginia families.”

Data centers have drawn ...