Small businesses have found the most success growing bigger by embracing the digital domain to reach and benefit consumers. According to the consultancy Deloitte, “Small businesses with less than 250 employees can access new markets and target new customers at a relatively affordable cost using digital tools.” Deloitte found that small businesses making extensive use of digital tools earn twice the revenue per employee and grow revenue four times as much annually compared to their less digitally attuned counterparts.
This has been especially true with the rise of artificial intelligence (AI). According to an October report by the U.S. Chamber of Commerce, about two-thirds of small businesses now use AI, an increase of eight percentage points from 2025 and nearly three times higher than the 2023 total of 23 percent. Further, “Small businesses using AI outpace non-AI enabled businesses and are at least 7 points more likely to report sales, profit, and workforce growth.” About 60 percent of these enterprises worry about increased technology-related litigation and regulation, and three-quarters say that limiting access to AI would hurt their operations.
That’s a significant issue because policymakers are increasingly imposing new restrictions on the data centers that make digital innovation—including AI—possible. For example, Virginia Governor Abigail Spanberger (D) recently signed Executive Order (EO) 22 enacting the core tenets of her “Data Center Accountability Framework.” This misguided EO directs regulators and state agencies to limit fast-track permitting and implement strict new standards on noise pollution, water efficiency, and emissions from backup generators, while bizarrely limiting how much data centers can rely on behind-the-meter natural gas generation.
At the core of these proposals is a series of myths on these projects’ impacts on communities. For example, the framework emphasizes the need to “Expedite the new state noise regulations for data centers” and calls for “less noise pollution.” But as the Taxpayers Protection Alliance (TPA) noted in its recently released brief, “Drowning Out the Noise on Data Centers,” an extensive 2024 review by the Virginia Joint Legislative Audit and Review Commission (JLARC) found that noise from data centers—even at facilities that have generated resident complaints—is generally comparable to ordinary background sounds and substantially quieter than many common activities.
Similarly, according to new state-specific data released by TPA, the perceived environmental and energy crises surrounding these installations are more myth than reality. For example, the framework’s talk of “Cooling Water Scarcity Areas” assumes that cooling infrastructure required for server farms is depleting regional water resources. Yet, TPA’s analysis reveals that in 2025, data center water consumption accounted for a mere 1.4 percent of all water usage across Virginia. Similarly, TPA’s findings show that even amid massive digital expansion, data centers accounted for just 4.6 percent of all electricity consumption in Virginia in 2025. These findings track data center figures for other states, which are typically in the low single digits for water and electricity consumption.
Policymakers should back away from heavy-handed restrictions on data centers and give small businesses the tools they need to prosper and serve consumers. Misguided policies driven by myths and misinformation will only make it more difficult for entrepreneurship to thrive.
