The specter of data centers is looming ominously over America, posing a triple threat to its electric power-generating capacity, limited water resources, and environment. Or so a chorus of self-styled progressives and populists is claiming. This brewing negative sentiment is reflected in a recent Gallup poll, in which 71% of respondents indicated they opposed the construction of data centers in their neighborhoods. It is time to nip hysteria in the bud. Far from being part of the problem, data centers are a critical part of the solution to address the nation’s overarching existential challenge: sustainable economic growth.Virginia will be ground zero for the effort to anchor the response to data centers in economic reality. Virginia has the largest concentration of data centers — an expected total of 685, of which 398 are currently operating. Texas and California, with the second- and third-largest concentrations of data centers, respectively, have significantly lower concentrations.When the concept of data centers was in its infancy, Virginia decided to exempt data center investments from sales taxes to encourage the development of an ecosystem of them in the state. In 2025, the sales tax exemption benefit on such investments amounted to $1.9 billion.