The Virginia Chamber of Commerce is raising concerns about portions of Gov. Abigail Spanberger’s newly announced data center accountability framework, warning that additional restrictions on the industry could affect Virginia’s ability to attract future investment.
In a statement released Saturday, the Chamber said it supports efforts to protect Virginia residents and businesses from rising energy costs and address the effects of rapid data center development, but argued that some elements of the governor’s framework could make the Commonwealth less competitive with other states.
The Chamber pointed to the data center industry’s economic footprint in Virginia, citing 74,000 jobs, $9.1 billion in economic output and $5.34 billion in state and local tax revenue. It also defended Virginia’s sales and use tax exemption for data center equipment, calling the incentive an important part of the state’s economic development strategy.
The organization specifically raised concerns about proposals affecting permitting and confidentiality surrounding prospective data center projects. Chamber President and CEO Brad N. Hall argued that companies considering major investments often rely on confidential discussions with state and local economic development officials before publicly announcing potential locations.
“Virginia should address legitimate concerns surrounding affordability, infrastructure, and the impacts of growth on our communities,” Hall said, while arguing that new requirements should not place Virginia at a competitive disadvantage.
The Chamber said its Blueprint Virginia 2035 economic development plan calls for streamlined permitting, expanded digital and energy infrastructure and an energy strategy designed to balance affordability, reliability and growing demand. The organization has previously identified infrastructure and energy availability as major issues affecting Virginia’s long-term business climate.
The response highlights the competing pressures surrounding Virginia’s rapidly expanding data center industry. State policymakers are increasingly confronting questions over electricity demand, infrastructure costs, environmental impacts and the effect of large-scale development on surrounding communities, while business groups are urging policymakers to preserve the economic incentives and regulatory environment that helped make Virginia a major center of the industry.
The Chamber said it plans to work with the Spanberger administration and General Assembly as the framework moves toward specific legislative proposals, arguing that Virginia can address energy affordability, reliability and community concerns while continuing to attract private investment.
