VIRGINIA BEACH, Va. — Green Run High School hosted the most recent stop in State Sen. L. Louise Lucas' data center listening tour on Wednesday.
"These people want data centers to pay their fair share of taxes," Lucas told News 3 after the listening event. "This issue impacts our neighborhoods, and we want to make sure that the environmental impacts, the environmental protections are in place"
Lucas was joined by Virginia Beach State Sen. Aaron Rouse. This statewide listening tour is taking place amid stalled budget talks over the future of data centers. On Tuesday, House Speaker Don Scott announced that the House of Delegates' planned meeting to vote on a budget proposal on Thursday was canceled.
Watch related coverage: Gov. Spanberger backs House budget proposal as deadline nears
Lawmakers need to pass a new budget by June 30 — the state government will shutdown if this deadline isn't met. However, Lucas told News 3 on Tuesday that there will not be a shutdown. She added that she planned to go to Richmond to continue budget negotiations after her listening tour stop in Virginia Beach.
"There is not going to be a government shutdown," Lucas said. "As soon as I can get in the car, I'm on my way back to Richmond — we will have a budget."
Specifically, the sticking point in these negotiations is the current sales and use tax exemption for data centers.
In 2016, lawmakers approved extending the exemption through 2035 to drive investment. The cost has since grown to $2 billion a year — far higher than was expected when the exemption was extended. Virginia is estimated to have 35% of the world's data centers, which help manage and process data across the internet, including websites people use daily.
Watch related coverage: Virginia Beach City Council unanimously rejects future data centers
House leadership and Gov. Abigail Spanberger have said data centers need to pay their fair share, but that eliminating the exemption early would hurt Virginia's business reputation.
The House released their proposed budget on Friday, which keeps the current exemptions for data centers in place. This budget — which has Spanberger's backing — would authorize the creation of a commission to examine all impacts of the industry and make recommendations by November. The Senate put forward their budget proposal on Tuesday, which includes a tiered fee system to charge data centers in proportion to the power they use.
Watch related coverage: Virginia senators rally to end data center tax exemption ahead of June 30 budget deadline
This wasn't Lucas' first stop in Hampton Roads for her data center listening tour. Lucas held a rally with State Sen. Mamie Locke on the steps of Hampton City Hall on Sunday. There, the senators urged for data centers to pay their fair share.
"We are not opposed to technology. We know we all need technology. The problem is, how much will the voters of the Commonwealth — how much are they willing to pay for it?" Lucas said.
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