RICHMOND, Va. — Gov. Abigail Spanberger said Wednesday she believes Virginia's data centers should pay their fair share, including potentially through a consumption tax tied to their energy use, as state budget negotiators work to close out a spending plan before Saturday's deadline.
Speaking with media at the Capitol, Spanberger said she held productive meetings with both House and Senate budget conferees and expressed optimism that a deal could come together, even as key sticking points remain.
"I think we as a Commonwealth are moving in the right direction," Spanberger said. "The budgeting and appropriating process is never easy, but they're working."
Central to the negotiations is the state's sales tax exemption for data centers, a tax break that has helped Virginia attract a massive share of the nation's data centers.
But it's a tax break that critics argue costs the state too much in lost revenue.
Senate Finance Chair Louise Lucas (D-Portsmouth) has publicly stated she will not send a budget to the governor that does not eliminate the exemption.
Spanberger, also a Democrat, declined to say whether she would veto such a measure, but made clear she would not support any budget that rolls back existing contracts or memorandums of understanding the state has already signed with data center companies.
"I've been very clear that I won't support pulling back on contracts," Spanberger said.
However, the governor signaled openness to other approaches, specifically pointing to a potential consumption tax targeting data centers' heavy energy use.
"If the issue is how much energy are data centers using, should there be a consumption tax to make sure that they are quite literally paying their fair share when it comes to energy consumption?" Spanberger said.
Watch: Data centers play role in Virginia budget talks as session nears end
She also noted that rising energy costs are a growing concern for Virginia families, and said the conversation around data centers is inseparable from that issue.
Spanberger declined to negotiate publicly with Lucas.
"She knows where I stand on this issue. I know where she stands, but ultimately we have the same shared goal," she said.
On timing, Spanberger said she hopes the budget is finalized by Saturday, the scheduled end of the legislative session, but stopped short of guaranteeing it.
"I think everyone would love to have gotten it done yesterday," she said.
The governor emphasized the stakes, noting the state budget funds gun violence prevention programs, Medicaid, and SNAP benefits.
She also pointed to the impact on local governments, saying cities and counties across Virginia are waiting on a final state budget before they can complete their own spending plans.
"It is exceptionally important that they know what they're working with," Spanberger said.
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