US EditionVirginia Has a Data Center Boon. Officials Debate Whether It’s Time to Scrap Its Tax Breaks
Senate aims to end a multibillion-dollar tax exemption for data centers to fund other priorities while negotiators face a significant budget gap before July 1 deadline.
- Virginia senators voted to end a projected $1.6 billion annual tax break and require the data center industry to resume paying a minimum 5.3% sales tax before Saturday.
- Facing about a $3 billion budget gap, lawmakers say the Senate proposal to eliminate the $1.6 billion data center tax break would redirect funds to other priorities, but opponents warn it could drive industry away.
- The Senate supported ending the $1.6 billion data center tax break, with 21 Democrats and seven Republicans voting for it, and the state tax department reports over $80 billion invested.
- Opponents warn that negotiations have stalled since a joint breakfast last week, risking economic harm if no agreement is reached by Saturday, according to budget negotiator Del. Luke Torian.
- Amid national pushback and rising demand pressures, the only hard deadline is July 1, as lawmakers consider similar moves in other states.
32 Articles
32 Articles
InsideNoVA.com
Clock ticking on Virginia budget as Democrats clash over data center tax break
With just days remaining in the 2026 legislative session, Virginia lawmakers are running out of time to reach agreement on a new two-year state budget, even as Democrats control the governor’s office and both chambers of the General Assembly. As…
Virginia data center boon: Officials debate scrapping tax breaks
Nearly two decades ago, Virginia gave tech companies a tax break on equipment and software, and they began to build. The state became a data center hub, and they kept building. Residents bemoaned the noise while they built some more. Artificial intelligence boomed, and the power grid strained — still, more building. Now, amid a growing national pushback on data centers, Virginia senators have voted to end a projected $1.6 billion annual tax brea…
Virginia has a data centre boon; officials debate whether it's time to scrap its tax breaks
Virginia senators have voted to end a significant tax break for data centres.. This move requires the tech industry to pay a minimum sales tax again. The proposal faces opposition, with some warning it could halt data center construction. This debate mirrors national concerns about AI's impact and rising electricity costs.
Associated Press News
Virginia has a data center boon. Officials debate whether it's time to scrap its tax breaks
Virginia senators are pushing to curtail a 5.3% tax break for data centers. The policy proposal comes while many communities are trying to defeat data center projects in zoning proceedings and some states are reconsidering their sales tax exemptions.
2,050 jobs at $80,500 headed for Pittsylvania County? That could complicate data center tax talks and vindicate Youngkin
The news that a Colorado company with ties to data centers might be headed to Pittsylvania County — with a draft performance agreement that calls for it to create 2,050 jobs over 30 years — could have immediate political implications in Richmond, where tax breaks for data centers are at the center of budget negotiations. It might also provide more long-term vindication for someone who was in Richmond until recently: former Gov. Glenn Youngkin, w…
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