Virginia Fails to Implement Clean Energy Requirements for Data Centers
After months of legislative debate, Virginia has failed to pass clean energy requirements for data centers, despite concerns about their environmental impact and rising electricity costs. The state had considered linking environmental protections to a tax exemption for data centers but ultimately approved a budget that maintains the exemption without adding clean energy mandates. Instead, a new tax on data center energy consumption was introduced, capped at $600 million annually. The budget includes provisions for reporting on electricity and water usage, but lacks specific standards for environmental sustainability. The decision has drawn criticism from environmental advocates who argue that the state missed an opportunity to hold the industry accountable.