Louise Lucas slams data centers for paying construction workers too much

Virginia state senator Louise Lucas is a leading Democratic leader in Virginia. She has a new criticism for companies building data centres in the state: that they pay construction workers too much.

Lucas, the Virginia State Senate’s president pro tempore and a frequent critic, made the argument Wednesday at, the first of many highly anticipated Virginia legislative meetings called to study data centres, their environmental and socio-economic impacts, and their tax benefits.

“I was wondering, is there any concern about employment in other construction areas, especially if you’re trying build residential housing?” Lucas, vice chair of a bicameral committee convened to examine the issue, said:

She continued, “This is because the data centres seem to be consuming all of the labor by paying $100,000 to $250,000. “Where are the employees that can help with residential construction sites, and other things like that?”

After no one in the audience addressed Lucas’s remarks, the panel’s chair, Virginia delegate Luke Torian, (D.), announced that he would “find” someone to answer her question.

Lucas’s office has not responded to a comment request.

This is the latest criticism that opponents of data centres are using to slow down their development across the country. Lucas’s claim to be fighting for higher wages and more jobs is particularly puzzling. She sponsored legislation to raise the state’s wage minimum to $15 in recent months. She also created a $97.7-million fund for attracting high-tech rocket manufacturing to the state.

Data centers are a hot topic in Virginia. Loudoun County has been nicknamed “Data Center Alley,” due to the high number of data centers. According to a study conducted in 2023, the industry has created tens and thousands of jobs in the state. It also generated $5.5 billion in income from labor, and $9.1 in gross domestic products. Local governments have reduced property tax rates as much as 40% over the last decade because of tax revenue from data centres.

The International Brotherhood of Electrical Workers and United Association of Plumbers and Pipefitters are among the largest unions that oppose data center moratoriums. They claim they “threaten billions of dollars of potential investment and will eliminate crucial job opportunities”, the IBEW stated this week .

Data center opponents such as Lucas have tried to slow down the industry’s expansion in Virginia by arguing that it will dry out local water sources and increase energy costs. Recent studies have contradicted .

Lucas stated in July that “it’s time to take our heads out of sand.” “Data centers are increasing. Profits are increasing. The burden on Virginian families is also increasing. This is not fair. That’s freeloading. This year we made progress. “I will not stop fighting until the data centers pay their fair shares.”

She said the same thing during the hearing on Wednesday, “I’m not going to back down from this issue.”

The Virginia data center hearings will ultimately determine how the state implements its first-of-its kind consumption tax that charges data centers for energy they consume. The tax, which was part of the biennial Budget Package signed by Virginia Governor Abigail Spanberger in June, will cost data center operators approximately $600 million each year.

Loudoun County is a county in Northern Virginia. Its county seat is Leesburg.

Email Abigail Spanberger at:
abigail.spanberger@governor.virginia.gov