RICHMOND, VIRGINIA — The Virginia Chamber of Commerce recognizes Governor Abigail Spanberger’s focus on protecting Virginia families and businesses from rising energy costs and ensuring that economic development benefits communities across the Commonwealth. However, we are concerned that portions of the data center accountability framework announced today could weaken Virginia’s competitiveness, deter future investment, and hinder the Commonwealth’s ability to compete with other states for the jobs and technologies of the future.

The economic impact of Virginia’s data centers must be at the forefront of policy discussions: 74,000 jobs, $9.1 billion in economic output, and $5.34 billion of state and local tax revenue.  Maintaining the sales and use tax exemption for data center equipment remains an essential pillar of Virginia’s economic competitiveness. Any effort to weaken it, particularly in addition to the new restrictions under consideration, would further compound the risk to Virginia’s reputation as a top state for business.

Virginia has worked tirelessly to build its reputation as a top state for business. Maintaining that position requires honoring commitments to a predictable regulatory environment, timely and efficient permitting, access to reliable and affordable energy, and policies that encourage rather than deter private investment.

Blueprint Virginia 2035 calls for Virginia to simplify permitting, expand expedited permitting programs, invest in digital and energy infrastructure, and pursue an affordable, reliable, resilient, and balanced energy strategy capable of meeting the Commonwealth’s growing needs.

“Virginia should address legitimate concerns surrounding affordability, infrastructure, and the impacts of growth on our communities. But we must do so without putting Virginia at a competitive disadvantage,” said Brad N. Hall, President and CEO of the Virginia Chamber of Commerce. “At a time when states are competing aggressively for investment in advanced technologies and the infrastructure that supports them, adding significant new barriers to investment risks, sending those opportunities elsewhere. Confidentiality is an essential component of how economic development works across the country. Prohibiting confidential discussions regarding data centers from taking place signals to every business in every industry that Virginia can no longer be trusted to keep sensitive location and expansion decisions private, and many of these businesses will respond by taking those decisions to a state that can.”

The Virginia Chamber looks forward to working with Governor Spanberger, her Administration, members of the General Assembly, and the business community as legislative proposals are considered. We believe Virginia can address affordability, reliability, environmental stewardship, and community concerns while preserving a competitive business climate.

The Virginia Chamber will continue to advocate for policies that allow Virginia to grow responsibly without sacrificing our ability to compete, attract investment, or remain a top state for business.

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About the Virginia Chamber of Commerce:

The Virginia Chamber of Commerce is the largest business advocacy organization in the Commonwealth, with more than 33,000 alliance members. The Virginia Chamber is a non-partisan organization that champions the interests of the business community in the legislative, regulatory, and political arenas to serve as the catalyst for positive change in all areas of economic development and competitiveness for Virginia. Learn more at www.vachamber.com