By Zamone Perez
Tax breaks for data center developments across Virginia cost the Commonwealth more than $2 billion in 2025, according to new research.
The report from Good Jobs First, an organization promoting corporate accountability, found the tax abatements cost Virginia schools more than $250 million the year before.
Elena Schlossberg, executive director of the Coalition to Protect Prince William County, said Virginians are already subsidizing data centers by footing the bill for large utility rate hikes, which compensate for their intense energy demands.
“The wealthiest industry in the world is getting subsidized because of the state tax, because ratepayers are forced to pay for the massive transmission line infrastructure and the new generation,” Schlossberg contended. “You have to ask, if this is winning, I’d like to lose for a while.”
According to the Environmental and Energy Study Institute, electric rate increases from data centers affected around 40 million customers nationwide last year. Virginians saw electricity prices rise by more than 250% over the last five years.
The report comes as Virginia lawmakers are divided on whether to end tax incentives for data centers. Leaders in the Senate want to eliminate them to further fund education and transportation, while leaders in the House of Delegates want to keep the incentives in place but tie them to strict environmental standards.
Schlossberg acknowledged Virginia sought the developments at an earlier time and since there is more information, she believes the relationship between data center developers and policymakers has shifted.
“I would contend that the facts on the ground have changed,” Schlossberg explained. “Our elected leaders need to readjust to the new facts. And maybe they need to break up.”
Virginia is home to one of the largest concentrations of data centers in the world, primarily located in northern Virginia counties like Loudon, Fairfax and Prince William.
Related: Data center tax exemption debate heats up in Virginia
