Gov. Spanberger’s Clarion Comments on Data Centers’ Benefits

By Paul Steidler: With the possible exception of President Donald Trump, few if any public or private executives have more responsibility over data centers, and their related challenges, than Virginia Governor Abigail Spanberger.

Her words on AI and data centers therefore carry more weight, and should rise to the top when looking for expert commentary and analysis. Virginia leads the country in both the number of current data centers (663) and those planned (559), with Texas a distant second, at 405 and 442, respectively.

In a plainspoken, direct interview that aired July 6 on POLITICO’s Energy Podcast, Gov. Spanberger was respectful but blunt to the rising chorus of progressives pushing for data center moratoriums. This includes, as mentioned during the interview, her former colleague Rep. Frank Pallone (D-NJ), ranking member of the U.S. House of Representatives Energy and Commerce Committee, who called for such a moratorium on June 24.

To data center moratorium proponents, she warns, “What do we tell the localities that get 50 percent of their local revenue from data centers … We have entire communities where the school, the libraries, the fire station is principally being funded because of the types of investments that are coming to that community. And on the affordability side, that means that local property tax is not going up.”

She also sternly warns a moratorium will have “a major impact on jobs in Virginia, union jobs, electrical jobs, certainly the building trades.”

Gov. Spanberger also emphasized that in the state’s budget, “we created the first of its kind consumption tax on data centers and their energy use.” The measure is expected to raise $1.2 billion over the next two years.

She is also pushing to lower residential electricity costs in Virginia, though they are already 7.7 percent below the national average. The Governor is closely scrutinizing the proposed merger between NextEra Energy and Dominion Energy. A legal filing will be made with the Commonwealth of Virginia soon, and the top priority in reviewing that will be ensuring it benefits consumers.

For longer term benefits, Governor Spanberger supports and encourages the use of emission-free, nuclear power through small modular reactors. She is also optimistic about fusion technology.

As officials of both parties gauge the best public policies about data centers, they would do well to listen to Governor Spanberger and seek her counsel.