State lawmakers may fail to pass a budget deal because of a Democratic split on whether to rescind tax breaks for data centers. Virginia Democrats are split on rescinding tax breaks for data centers, a disagreement that could derail the state's budget deal. The debate reflects broader concerns about state revenue and the role of data centers in the economy, with lawmakers weighing the benefits of attracting tech investment against the need for fiscal stability. No specific figures were disclosed in the report regarding the size of the tax incentives or the projected revenue impact. If the split is not resolved, lawmakers may need to seek alternative revenue sources or compromise on incentives to secure the budget.