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Spanberger floats 'consumption tax' for data centers

Governor Abigial Spanberger takes questions from the press on capital grounds ahead of the end of the 2026 legislative session.
Brad Kutner
/
Radio IQ
Governor Abigial Spanberger takes questions from the press on capital grounds ahead of the end of the 2026 legislative session.

Governor Abigail Spanberger tried to assuage budget dispute concerns between Virginia’s House, Senate and her office Wednesday. In a brief appearance before reporters at the capitol, the governor floated yet another solution to Virginians rising energy costs that may not encroach on the state’s long-running data center tax exemption.

“Over in the General Assembly everyone is talking to everybody all the time," said Governor Abigail Spanberger Wednesday. She was asked about recent comments from Senate President Louise Lucas and other budget negotiators who suggested talks between the chambers, both run by Democrats, had broken down.

“I beg to differ with anyone who says that it’s on me to meet to discuss this budget,” Lucas said in a social media post Tuesday, adding quote “I delivered a budget that makes life affordable by ending a tax giveaway to big tech.”

That tax giveaway to big tech dates back to 2009 and has been credited with helping the data center industry flourish across the Commonwealth. But as it has grown so has its demand for power. And while Lucas would like to eliminate the tax break to the tune of almost $2 billion, Spanberger has her own idea.

“There’s discussion potentially of a consumption tax," Spanberger said. "If the issue is how much energy these data centers are using, well, should there be a consumption tax to make sure they are quite literally paying their fair share when it comes to energy consumption?”

Spanberger also said she met with budget conferees Wednesday morning and that she was hopeful the budget could be wrapped up in time for the final day of session this Saturday.

Others are less sure, particularly as the deadline for a budget to be made public is Thursday.

Brad Kutner is Radio IQ's reporter in Richmond.