Updated
Updated · POLITICO · Jul 17
Virginia Senator Lucas Pushes to Repeal $2 Billion Data Center Tax Break
Updated
Updated · POLITICO · Jul 17

Virginia Senator Lucas Pushes to Repeal $2 Billion Data Center Tax Break

3 articles · Updated · POLITICO · Jul 17

Summary

  • State Senator Louise Lucas has launched a statewide town-hall tour aimed at turning public opposition to data centers into support for scrapping Virginia’s sales-and-use tax exemption.
  • The target is a subsidy Lucas says has swollen to about $2 billion a year, arguing the benefit now goes to some of the world’s richest companies and has become politically indefensible.
  • Lucas said turnout grew from stop to stop and described the backlash as unusually broad, drawing Republicans, Democrats and independents across racial, age and regional lines.
  • Her campaign adds pressure to one of Virginia’s biggest growth industries by framing data centers as no longer politically untouchable, even as she casts herself as a frequent target of political retaliation.

Insights

As other states halt tech incentives, is the era of tax-free growth for data centers coming to an end?
With data centers consuming a third of state power, are Virginians facing unavoidable hikes in their own electricity bills?
As Virginia’s budget stalls, what is the ultimate price for being the world's internet hub?