Governor Abigail Spanberger recently highlighted Virginia's pioneering statewide energy consumption tax on data centers during an interview with POLITICO Energy. This new tax, part of the recently passed budget, aims to ensure data centers contribute their "fair share" for energy usage, protecting air quality and preventing ratepayers from bearing the costs of new energy infrastructure.
"In the budget that we passed, we created the first-of-its-kind consumption tax on data centers and their energy usage," said Governor Abigail Spanberger. She added that this tax, based on energy consumption, could be coupled with future standards for water usage and backup energy generation. The Governor also discussed her administration's efforts with the General Assembly to make energy more affordable and reliable for Virginians.
Spanberger attributed rising energy rates and electric bills to "President Trump’s reckless economic policies," including disruptive trade and tariff policies, H.R. 1, and the war in Iran, which she estimated has cost average families an additional $1,000. To combat these issues, she appointed Josephus Allmond as the Commonwealth’s Chief Energy Officer, a new cabinet-level role.
The Chief Energy Officer is actively working with PJM Interconnection, the nation's largest electric grid operator, to advocate for changes that promote additional and newer energy generation, ultimately benefiting Virginia ratepayers. Governor Spanberger has also signed legislation enforcing stricter requirements on data center backup generators, empowering local leaders to assess impacts, and safeguarding ratepayers from infrastructure investment costs. She has also joined a bipartisan group of governors to press PJM on data centers paying for new capacity.