Data center energy consumption tax
Virginia's 2026-2028 biennium budget includes a first-of-its-kind electricity consumption tax on data centers of $0.011 per kilowatt-hour used each month. Lawmakers estimate the tax could bring in nearly $600 million for the general fund, with excess collections refunded to data center operators. The measure reflects ongoing debate over whether Virginia's booming data center industry pays its fair share for energy infrastructure and grid strain.
Should Virginia tax data centers on their electricity consumption?
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Sources
Virginia General Assembly — https://www.wdbj7.com/2026/06/20/virginia-lawmakers-release-state-budget-details
Virginia would add an electricity consumption tax on data centers of $0.011 kilowatt-hour of power used each month. Lawmakers estimate the tax could bring in nearly $600 million for the general fund, and anything above that would go into a refund fund.
Governor Abigail D. Spanberger — https://www.governor.virginia.gov/newsroom/news-releases/2026/june-releases/name-1120418-en.html
First-of-Its-Kind Energy Consumption Tax on Data Centers... make sure data centers pay their fair share for the energy they use.
Virginia Business — https://virginiabusiness.com/party-on-dems-take-over-richmond-but-budget-is-tricky
Will public backlash kill Virginia's data center boom? Stafford County sees rapid growth of data centers with 20 planned, sparking public opposition and debate.
Positions on this issue · liberal → conservative
- Tax data centers at a higher rate and use all revenue for clean energy and community relief programs.
- Keep the $0.011/kWh tax and direct all revenue to the general fund for public services like education.
- Keep the current tax but refund excess collections to data centers as the budget provides.
- Reduce the data center tax rate and pair it with targeted incentives to retain the industry in Virginia.
- Repeal the data center energy tax entirely; the industry drives jobs and investment that benefits Virginia.