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HB 591

Data centers; policy of the Commonwealth.

2026 Regular Session Introduced by Shelly Simonds

Virginia elevates data centers to priority economic development status through formal policy framework establishing regulatory and incentive structures.

Fiscal Impact Statement from Department of Planning and Budget (HB591)
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Bill Summary · HB 591

Legislative bill overview

HB 591 establishes a formal policy framework for data centers in Virginia, designating them as a priority economic development sector for the Commonwealth. The bill has been referred to the Committee on Labor and Commerce and is currently under subcommittee review, with a fiscal impact statement generated by the Department of Planning and Budget.

Why is this important

Data centers represent a significant economic opportunity for Virginia, generating substantial tax revenue, employment, and infrastructure investment. The state's policy stance on data centers affects incentive structures, regulatory requirements, and competitive positioning against other states actively recruiting this industry.

Potential points of contention

  • Tax incentives and public cost: Whether state incentives (tax breaks, expedited permitting) justified by economic benefits or represent foregone revenue and subsidy to private corporations
  • Environmental concerns: Data center operations consume considerable electricity and water; environmental groups may contest sustainability impacts versus economic development priorities
  • Labor standards: Whether "priority" status includes wage/benefit requirements or permits companies to minimize labor costs while receiving policy support

Compiled from official sources — confirm details with the bill’s official record.

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