The Digester
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Senator Mark Warner proposes data center tax to fund worker transition from AI

At the Axios AI Summit Sen. Mark Warner said taxing data centers could fund retraining and local offsets as fears of AI-driven job loss grow, while he rejects a national moratorium on data centers.

Mar 26th 2026 · United States

Insights

  • Warner proposed taxing data centers and using the revenue for worker retraining and local community benefits.
  • He cited signs of AI displacing work, including a venture capitalist writing software investments down to zero and a law firm pausing first-year associate hires.
  • Entry-level U.S. job postings have dropped 35% since 2023 and Big Tech has carried out mass layoffs.
  • Warner opposes a proposed data center moratorium from Sanders and Ocasio-Cortez, arguing it would cede advantage to China.
  • Public concern about AI is high, with an NBC News poll showing 46% of registered voters view AI negatively and 26% positively.
  • Virginia is considering repealing data center tax breaks that cost the state and localities nearly $2 billion a year in lost revenue.
  • Henrico County, Virginia used data center tax revenue to help fund affordable housing as an example of community benefit.

Sources