Virginia lawmakers approve energy consumption tax on data centers

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Virginia's legislature approved a new energy consumption tax on data centers alongside new regulations on water use, noise limits and cleaner backup generators, aiming to address environmental and infrastructure concerns as the industry expands. The consumption tax charges 1.1 cents per kilowatt-hour up to a cap and is expected to raise about $600 million annually, with excess refunded annually; peak-load forecasts put data center use at about 5,050 megawatts. Lawmakers also ordered a work group to study phasing or modifying the longstanding sales and use tax exemption, with a report due in November.

The new tax will raise about $600 million annually from data center electricity use