Data Center Dispute Leaves Virginia on the Verge of a Shutdown

Virginia is on the verge of its first shutdown in modern history, and it all comes down to data centers and Democratic Party infighting. Democrats control the governor’s mansion, the state Senate, and the House, yet the party can’t get on the same page.
“Virginia has to have a budget by June 30,” Republican Virginia state Sen. Glen Sturtevant told The Daily Signal. After fighting for “several months” on the budget, state leaders are locking horns over data centers and increasing taxes.
“If there’s an actual shutdown and there’s no money appropriated, you know teachers aren’t getting paid, cops aren’t getting paid,” Sturtevant continued.
Sturtevant explained that the Senate, including many Democrats, wants to eliminate the 20-year-old tax break for data centers that currently costs Virginia $2 billion a year that has to be made up for by taxing Virginians. House Democratsand Democrat Gov. Abigail Spanberger want to keep that tax break in place, protecting the data centers.
“I am somebody who thinks we need to get rid of the data center tax break, because I don’t think we need to be giving $2 billion a year to huge AI big tech firms,” Sturtevant continued. “It’s ultimately Virginians who pay for that in higher electric bills.”
Data centers have taken over Virginia in recent years. Eighty-eight have already been built, and 100 more have been approved and begun construction. Sturtevant says they have “worn out their welcome.”
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