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Va. Assembly Remains Divided on How to Manage Data Center Growth
On Monday, Virginia Senate President Louise Lucas and House Appropriations Chair Delegate Luke Torian clashed during a joint committee meeting over the Commonwealth's data center tax break. Lucas demanded additional meetings to address tax policy, prompting a tense exchange with Torian.
The session aimed to evaluate the impact of Virginia's 18-year-old data center tax break, which Lucas has identified as a primary target for reform. She argues the incentive costs the Commonwealth billions, though it helped establish Virginia as a global data center capital.
Lucas stated, "I'm not satisfied that we've been given enough information to make any substantial recommendations," while requesting a third meeting in an impacted area. Torian responded with a groan and replied, "We'll talk," declining to commit to further sessions.
Governor Abigail Spanberger recently unveiled a Data Center Accountability Framework to address transparency and environmental standards, though the tax break issue remains unresolved. The disagreement reflects ongoing legislative friction over balancing economic investment with local infrastructure concerns.
Lawmakers face continued pressure to refine regulations before the 2027 legislative session. No specific timeline for further discussions on the tax exemption was established following the conclusion of Monday's session.