Virginia Fails to Pass Data Center Clean Energy Requirements

"The state will tax data center electricity but plans to reduce emissions at the facilities and secure environmental protections went nowhere."

"RICHMOND, Va.—Before the start of Virginia’s legislative session in January, 53-year-old William Ward attended a Virginia League of Conservation Voters rally in Petersburg, where he learned about how the state’s data center industry is straining the grid, harming the environment and driving up electricity costs. 

He also learned about the $1.9 billion in sales and use tax the state waived for data centers in 2025. 

“It affects the common people,” Ward said. “We have to pay, they don’t have to pay. I understand we need data centers, but why here? They need to pay their fair share.”

What started as a promising pitch in February to fix the concerns of Ward and other Virginians by linking environmental protections to the tax exemption ultimately went nowhere. Virginia lawmakers balked and created a new tax instead."

Charles Paullin reports for Inside Climate News July 17, 2026.

Source: Inside Climate News, 07/20/2026