JLARC Statement

Press Contact

Claire Bencks, Manager, Communications
Data Center Coalition
claire@datacentercoalition.org
804-503-4809

Quote from DCC President Josh Levi: 

“The data center industry, which supports the essential digital infrastructure that enables our modern economy, has a long and successful history with Virginia, thanks to the wisdom of the Commonwealth’s leaders. The study validates Virginia’s leadership in attracting and nurturing this dynamic, critical industry over the past 15 years. The report recognizes that the data center industry continues to make substantial contributions to communities across the Commonwealth – from capital investment and stable, well-paying jobs to state and local taxes that help fund important civic priorities like education, public safety, and transportation.  

The study indicates the need for substantial additional power generation and infrastructure to support growth and investment, recognizes that data centers are currently paying full cost of service for energy, and that the State Corporation Commission (SCC) is best positioned to ensure this remains the case as additional generation and transmission are deployed to support economic growth.  

The JLARC study includes valuable recommendations and policy considerations and provides a fact-based assessment that will facilitate important and informed dialogue among state and local policymakers, data center leaders, and many other stakeholder groups. We look forward to continuing to engage with policymakers about the JLARC findings and opportunities to advance positive economic, environmental, and social outcomes while building and supporting Virginia’s 21st-century economy.” 

Data Center Coalition Statement on JLARC Data Center Study: 

On December 9, 2024, the Virginia General Assembly’s Joint Legislative Audit & Review Commission (JLARC) released its "Data Centers in Virginia" study–a comprehensive, moment-in-time assessment of Virginia’s data center industry. Over the past year, JLARC’s professional staff solicited perspectives across a wide spectrum of stakeholders in the Commonwealth, including residents, industry, environmental groups, policymakers, state agencies, and more. DCC appreciates the time, attention, and effort that has gone into the JLARC study process and was pleased to have the opportunity to participate in the feedback process along with hundreds of other diverse voices and stakeholders.  

As the largest data center market in the world, Virginia is a leader in creating an environment that ensures responsible data center development to protect all Virginians while supporting essential digital infrastructure and economic growth. The JLARC study includes valuable recommendations and policy considerations and provides a fact-based assessment that will facilitate important and informed dialogue among state and local policymakers, data center leaders, and many other stakeholder groups.  

Fundamentally, the JLARC study validates Virginia’s leadership in attracting and nurturing this dynamic, critical industry over the past 15 years. It speaks to the data center industry’s essential role in providing digital infrastructure, enabling the modern economy, and driving statewide investment, job creation, and supply chain and ecosystem development. Specifically, it notes the industry annually supports 74,000 jobs, $5.5 billion in labor income, and $9.1 billion in GDP in Virginia. JLARC cites data center investment of $24 billion in FY23 and notes that data centers represented 84% of all capital investment tracked by the Virginia Economic Development Partnership (VEDP) between FY22 and FY24.  

The study identifies the many local, state, regional, and federal agencies, policies, and regulations that currently oversee responsible data center development and operations throughout the Commonwealth and help protect Virginians while managing environmental and other impacts. It also continues to validate the effectiveness of Virginia’s Economic Development Sales Tax Exemption Program in driving investment, jobs, tax revenue, and other benefits in the Commonwealth and its communities.  

The study indicates the need for substantial additional power generation and infrastructure to support growth and investment. It recognizes that data centers are currently paying full cost of service for energy and that the State Corporation Commission (SCC) is best positioned to ensure this remains the case as additional generation and transmission are deployed to support economic growth. While we recognize that grid planning and management is ultimately the role of utilities, regulators, and grid operators, the data center industry will continue to work collaboratively with utilities, the SCC, PJM, and other stakeholders to help ensure a reliable, affordable, cleaner, and resilient electric system.