Virginia Governor Abigail Spanberger recently revealed that she intends to let the state’s tax incentives for data centers expire naturally rather than break a contract previously signed by the state. Her statement sparked outrage among Virginia Democrats, who criticized her for putting corporate interests ahead of the people.
In a recent interview with Cardinal News, Abigail Spanberger addressed the ongoing standstill surrounding the state’s 2026-27 budget. Democratic Senate Finance Chair Louise Lucas is currently trying to push Virginia to end the tax incentives the state provides for the construction of data centers, which are otherwise set to expire in 2035. The Democratic Party remains divided on the issue, as some members want to end the incentives as early as 2027.
According to Virginia Governor Abigail Spanberger, however, she will not break any contracts previously signed by the state, as she is wary that doing so could scare away future economic development projects. Despite supporting the previous contract, the governor claimed in the interview that she is, indeed, concerned about infrastructure strain and energy use.
Virginia is currently one of the world’s largest data center hubs, meaning any decision on the issue could have a major impact on the state’s economy.
Virginia Governor Spanberger Still Suffering From Vetoes’ Criticism
Spanberger’s stance enraged locals, who claimed, “She’ll respect a contract but not the will of the electorate.” Someone else said, “Hurting the state’s reputation? Hey, even though data centers are objectively bad all around and residents don’t want them, Virginia will honor that contract. Give me a break.”
Some people had more sarcastic reactions, alluding to the backlash of Spanberger’s recent vetoes of 31 bills: “Don’t call it ‘breaking a contract’; call it a veto, and she’ll be more supportive.” Others used sarcasm to point out that she should prioritize voters over businesses: “I’m ok with Virginia having a reputation for putting people before profits.”
Mostly, folks were disappointed in Spanberger, especially those who expected more progressive actions. One person wrote, “I wouldn’t say she’s a liberal, very much a centrist with a platform that mirrors more that of a republican from like 2006ish.”
Tensions within the Democratic Party over the issue will likely continue, as more and more people seem to dislike data centers while economic incentives continue to encourage their construction.
