Last Update: 04/05/2026 at 1:25 PM EST
Virginia Ties Data Center Breaks To Clean Power
Coverage from WHRO, Inside Climate News, and others
Articles
5
Latest Article
03/23
Active Days
48
Executive Summary
Virginia lawmakers moved to keep data center tax breaks only if operators match load with clean energy and phase out fossil fuel power
- Virginia House passed HB 897 by roughly party lines
- The bill keeps data center tax exemptions only for facilities meeting clean energy rules
- New facilities after July 1, 2027 could not use fossil fuel power as primary supply
- Existing exempt centers would get one year to comply or lose the exemption by Dec. 31, 2034
- Required changes include clean energy matching, noncarbon backup power, and better efficiency
- The policy responds to grid costs, local health concerns, and a planned 944 MW gas peaker
- Virginia added only 716 MW of solar in 2025 and no new battery storage
Quick Facts
- What: Passed a bill tying tax breaks to clean energy
- Where: Richmond and Virginia data center facilities
- Why: To curb grid strain, emissions, and local impacts
- Who: Virginia House lawmakers and data center operators
- When: Tuesday with 2027 and 2034 deadlines
Coverage Timeline: 48 Days
Featured Article
Virginia’s solar additions slowed in 2025 as the SCC approved Dominion gas reliability capacity while data center demand grew and lawmakers considered returning to RGGI.
Additional Articles
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In Virginia, lawmakers, regulators, and Dominion Energy in 2024–2025 revised shared solar billing rules to broaden access and improve customer savings.
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Virginia House passed HB 897 on Tuesday in Richmond, conditioning data center tax exemptions on clean-energy matching and limits on fossil-fuel power for new and existing centers.
Virginia lawmakers passed affordable clean-energy, efficiency, and RGGI re-entry bills in 2026-starting legislation, supported by ratepayer affordability measures for households and data centers.
Virginia saw slower solar and storage growth in 2025 as data center electricity demand increased imported fossil electricity, while Dominion pursued a 944 MW gas peaker.