Tri-County VA News

Virginia budget passed; data center energy tax enacted; RGGI reentry; marijuana market timeline; Spanberger doubles down on data centers

Virginia budget passed; data center energy tax enacted; RGGI reentry; marijuana market timeline; Spanberger doubles down on data centers

Key Questions

What is the status of Virginia's biennial budget?

Virginia passed a $212 billion two-year state budget that avoids a government shutdown. The budget includes teacher raises and other spending measures.

What new tax applies to data centers in Virginia?

The budget enacts a data center energy fee of $0.011 per kWh with a $600 million cap. This is part of efforts to manage the growth of data centers in the state.

What changes are happening with Virginia's participation in RGGI?

Virginia is reentering the Regional Greenhouse Gas Initiative, which will generate funds for $35 annual rebates on utility bills for residents. The program is funded from a $650 million carbon account.

What is the timeline for Virginia's retail marijuana market?

The Cannabis Control Authority is seeking public input on the incoming industry ahead of its launch, with a survey deadline of July 21. Hemp farmers have expressed concerns about legislative changes favoring larger businesses.

What is Governor Spanberger's position on data centers?

Spanberger has defended data centers as critical to economic growth and national security, stating that banning them would mean walking away from opportunities. She has drawn a hard line against local bans.

What is the status of Virginia's assault weapons ban?

A federal judge has blocked enforcement of the ban ahead of its July 1 start date. The DOJ has challenged the ruling, and the Virginia Supreme Court declined to combine related cases.

What happened to the QTS Digital Gateway data center project?

QTS, a Blackstone subsidiary, terminated its planned Digital Gateway data center project in Prince William County after withdrawing its appeal. The project faced local opposition and regulatory hurdles.

Are there other notable provisions in the Virginia budget?

The budget creates a study commission on data centers and includes a statewide ban on Styrofoam food containers effective July 1. Local governments continue discussions on related taxes, schools, and infrastructure.

Virginia's $212B biennial budget passed, avoiding shutdown. Includes teacher raises, data center energy fee ($0.011/kWh, $600M cap), RGGI reentry ($35/year rebates), marijuana market timeline, and study commission on data centers. Spanberger doubles down on data centers as national security necessity. Assault weapons ban blocked by federal judge; DOJ challenges. Dominion-NextEra merger under SCC review. QTS terminates Digital Gateway in Prince William County. Hemp farmers worry about marijuana market changes. Styrofoam food containers banned statewide effective July 1. Cannabis Control Authority seeking public input on marijuana industry (survey deadline July 21). Local government meetings continue on data center tax, school referendums, and transmission lines.

Sources (13)
Updated Jul 7, 2026
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