Virginia HB 897 requires data centers to use emission-free (non-diesel) backup generators and demonstrate commitment to clean energy to qualify for sales and use tax exemptions. The bill passed the House 61-34 and passed the full Senate, making Virginia one of the first states to condition data center tax incentives on environmental performance. Governor Spanberger signed HB 897 into law on April 9, 2026, alongside HB 284/SB 371 (voluntary demand flexibility programs for high-load customers using 25+ MW) and bills to aid low-income utility customers affected by data center energy demand.
Virginia SB 619 / HB 155 requires a State Corporation Commission certificate before data centers over 90 MW can operate. The SCC issues a certificate only if the facility has no material adverse effect on other customers' rates, reliability, or the utility's ability to meet Virginia Clean Economy Act goals. This represents one of the strongest state-level data center permitting requirements in the country.
Georgia SB34 would have prohibited data center fuel generation and transmission costs from being included in residential electricity rates, requiring commercial data centers to cover all increased fuel, power, and transmission system upgrade costs. The bill emerged after the Public Service Commission authorized Georgia Power to expand production by nearly 10 GW — mostly for data centers — including new methane-burning facilities. The Senate avoided a final vote after a last-minute alternative measure based on House Bill 1063 appeared to have the votes to pass.
WV House Bill 2014 (2025) created a certified microgrid program and set policies for data centers, stripping local government jurisdiction over 'high-impact' data centers (90+ MW) and diverting property tax revenue. In 2026, bills to restore local control (HB 5590, HB 5620) and require water usage disclosure were introduced but blocked. HB 4983 passed 78-16, bundling rulemaking to limit transparency. On April 1, 2026, West Virginia Watch published a call for a state moratorium, noting HB 2014 bans local governments from enforcing noise, pollution, zoning, lighting, viewshed, or land use rules against certified data center projects. Sen. Joey Garcia's bill to restore local control has not received a hearing. WV MetroNews published an April 7 analysis of the 'data center development dilemma.'
Washington State SB 6231 repeals the retail sales and use tax exemption for refurbishment of existing computer data centers. The law makes purchases of replacement server equipment ineligible for exemption. It preserves tax benefits for new data centers in rural counties where the economic incentive is more needed. The repeal is part of a broader push to rein in data center tax breaks.