School boards; entitlement to one-time fee from certain data centers.
Summary
HB2028 would create a new section of the Virginia Code giving certain school boards a right to collect a one-time $250,000 fee from the owner of a newly permitted data center. The fee would apply only when a public school in the affected school division is located within three miles of the data center, and payment would be due within 90 days after the locality issues the data center’s certificate of occupancy.
The bill also includes a grandfathering provision: it would not apply to data centers that received a certificate of occupancy on or before July 1, 2025. In effect, the measure targets future data center development near schools and shifts a one-time cost to data center owners for the benefit of nearby school boards.
Impact
If enacted, HB2028 would add a new school-finance-related provision to Title 22.1 of the Code of Virginia and impose a direct financial obligation on certain data center owners. It would create a new entitlement for school boards in qualifying divisions and establish a specific payment trigger tied to local permitting and occupancy approval. The bill would affect data center developers and operators, as well as school boards in divisions with schools located within three miles of a data center.
Sentiment
The available legislative history suggests the bill did not advance far and faced an unfavorable early committee outcome. A January 21, 2025 subcommittee vote recommended striking the bill from the docket by an 8-0 margin, indicating unanimous opposition or at least unanimous agreement not to move it forward at that stage. No committee transcript is available, so the record does not show detailed debate, but the vote reflects a generally negative reception in subcommittee.
Contention
The main point of contention is likely the bill’s imposition of a mandatory one-time fee on data center owners, especially because it is triggered by proximity to a public school rather than by a broader impact-fee framework. Potential concerns include whether the fee is a fair cost recovery measure, whether the three-mile threshold is too broad or arbitrary, and whether the bill could discourage data center investment. Supporters would likely frame it as a way to help school boards address local impacts from large data center projects, while opponents would likely view it as a targeted tax or exaction on a specific industry.