Northern Virginia business leaders are souring on the state of the regional economy, but a majority are optimistic about the financial impact of data centers locally.
The Northern Virginia Chamber of Commerce (NVC) and public relations firm Pinkston released results of their third-quarter 2026 Business Leader Survey this week, revealing the sentiments of the region’s CEOs, senior executives and business owners.
The survey was conducted at the end of September among 169 professionals who do business in Northern Virginia. Most of the input was from government contractors and companies operating in the financial services, technology, professional services, retail and real estate industries.
“Northern Virginia tends to feel the effects of federal policy shifts before most other regions, and business leaders are telling us that uncertainty is weighing on confidence,” said NVC President and CEO Julie Coons. “We have our fingers on the pulse and are actively pursuing local policy changes that address the issues that matter most to employers in our region.”
The survey found that 47% of leaders are pessimistic about the state of the national economy, up from 38% last quarter. When asked specifically about President Donald Trump’s foreign policy decisions related to Iran, tariffs and trade negotiations, 49% said the resulting economic impacts are causing their businesses to decline.
Still, two-thirds of leaders were optimistic about the outlook for their company, though that is down from 77% last quarter.
Only about 36% of respondents expected the regional economy to grow over the next six months, which is down from 40% who felt that way in the second quarter.
“The national economy is growing at a modest pace, but there are some concerns on the horizon for Northern Virginia business leaders, according to this latest third quarter survey,” Pinkston Senior Vice President D.J. Jordan said. “Nationally, the President’s foreign policy and trade decisions are weighing on our region, and locally, housing affordability is a major concern for business operations, wages, and recruitment and retention.”
On a national topic with big local stakes, more than half (53%) of the respondents felt data centers have a positive impact on Northern Virginia’s economy.
The survey question asked specifically about the economic impact of the industry, which is massive in Loudoun County and booming in Prince William County — at least until a recently approved ban on by-right data center development takes effect. The survey didn’t ask about other impacts that have caused concerns, such as water quality, electricity infrastructure and environmental conservation.
Sixteen percent of respondents, however, cited data center and artificial intelligence regulation as a top priority for the 2027 General Assembly session.
Housing affordability was the top cited priority at 33%. It was followed by reducing taxes at 27%, transportation and infrastructure improvements at 15% and childcare affordability at 10%.
Data center regulation is likely to be a hot topic in the General Assembly next year after lawmakers spent the 2026 session duking it out with Gov. Abigail Spanberger over tax exemptions for the industry. Last month, Spanberger issued an executive order aimed at increasing transparency around data center projects and monitoring energy and environmental impacts.
