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Home – Virginia Politics & News – Virginians Question Power-Hungry Data Centers’ Expansion

Virginians Question Power-Hungry Data Centers’ Expansion

Newton’s third law indicates that every action produces an equal and opposite reaction. In Virginia politics, that is showing up in the push-and-pull over data centers.

The state is already peppered with data centers, and developers are rolling out plans to build more. In almost every location, local residents quickly rally to oppose their expansion.

“Virginia hosts the largest data center market in the world and is home to 35% of all known hyperscale data centers worldwide,” according to the Virginia Economic Development Partnership. “Virginia offers an exemption from retail sales and use tax for qualifying computer equipment purchased by data centers that meet statutory investment and employment requirements.”

A debate over whether to keep that tax break, which is in place through 2032, held up approval of the state budget for months. In the end, lawmakers and the governor agreed to maintain the break, but they will increase taxes on the energy that data centers consume to raise revenues.

A recent report from the Virginia State Corporation Commission, which regulates utilities in the state, provides a preview of the scope of the problem. Electric utility Dominion Energy has approved 111 new data center projects that it said will be connected to the grid by the end of 2031. It also has 200 more projects in the approval process. If all these data centers were connected, they could draw 70 gigawatts of electricity, enough to power more than 60 million homes.

Amid the concerns over........

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