by Steve Haner

Virginiaโs world-leading data center industry, once a source of economic pride to our Commonwealth, has become the scapegoat of the 2026 General Assembly. The State Senate and House of Delegates have built different altars for its sacrifice.
The Senate is about to vote to strip away the major sales and use tax exemption which has helped make Virginia the center of this burgeoning industry. This would raise the taxes they pay by more than $1 billion initially and then up to $2 billion annually, an infusion of cash the Senate will happily find ways to spend.ย
House Democrats have gone a different direction, keeping the exemption but making it conditional upon the industry adopting a fully Green New Deal energy policy. Ending any reliance on natural gas or diesel generation is the stated goal. Companies would be forced to buy renewable energy certificates on an even faster schedule than the Virginia Clean Economy Act requires for Dominion Energy Virginia and Appalachian Power Company. ย
And both chambers have approved versions of legislation that will allow the State Corporation Commission (SCC) to assign 100 percent of the future costs of Dominion Energy Virginiaโs energy capacity purchases and transmission upgrades onto that one industry. There is no reason that approach will not spread beyond Dominion if the SCC goes along, given politicians are already bragging this will lower bills for everybody else.ย











