Virginia budget proposals fail to address data center threats

FOR IMMEDIATE RELEASE
June 17, 2026

CONTACT
Dan Radmacher, Media Specialist, (276) 289-1018, dan@appvoices.org 

Today, Appalachian Voices, along with the Chesapeake Bay Foundation and the Southern Environmental Law Center, released a statement in response to recent budget proposals from the Virginia House of Delegates and the Virginia Senate.

Read the full statement here.

Over recent days, Virginia House and Senate lawmakers introduced new proposals for Virginia’s biennial budget that starts on July 1 — both of which fail to sufficiently address the environmental and public health impacts of the growing data center industry

The House lawmakers’ latest offer takes a major step backward from its February proposal: it does not include any environmental standards for data centers and maintains a state sales and use tax break that cost Virginia about $1.9 billion last year alone.  Instead, it would establish a commission to consider reforms, with a report due back to lawmakers in the fall. 

The Senate’s latest proposal, meanwhile, includes an “impact” fee for data centers that use diesel or gas-powered backup generators. This measure alone falls far short in addressing the air pollution, climate and adverse health impacts driven by the data center industry’s thirst for more fossil fuel generation. 

It is time for lawmakers to rein in the escalating energy use and water consumption of these data centers. 

The Chesapeake Bay Foundation, the Southern Environmental Law Center and Appalachian Voices are calling for Virginia legislators to implement legislation — whether through the budget process or potentially a special session — that establishes reasonable safeguards on data centers now. Specifically, data centers should: 

  • Power their facilities with clean energy on their own dime;  
  • Be prohibited from building dirty power sources on-site that burden Virginia communities with harmful air pollution; 
  • Cut harmful impacts of backup diesel generators by maintaining at least two hours of non-polluting backup power at all times; and 
  • Fully offset their water consumption in water-scarce areas by using recycled water for cooling.
     

Chesapeake Bay Foundation Virginia Policy Manager Jay Ford issued the following statement: 

 “Virginia’s data center boom is moving faster than the law. This year, lawmakers must enact strong regulations for data centers that protect our air and water. Unless Virginia acts now, we’ll pay for the rapid expansion of data centers in the Commonwealth with our drinking water, clean air and thriving waterways.” 

Southern Environmental Law Center Senior Attorney Nate Benforado issued the following statement:  

  “Data centers continue to flock to our state, and it is hurting everyday Virginians. But this unfortunate dynamic is also an opportunity. Virginia can stand up and demand this industry be better neighbors and citizens.”  

Appalachian Voices Director of State Energy Policy Peter Anderson issued the following statement: 

 “So far, the General Assembly has allowed the unconstrained development of polluting data centers in the Commonwealth, and this simply cannot continue. If our decisionmakers demand that the wealthiest industry in the world achieve sensible public health and environmental standards, the industry will do it.” 

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