Taxes

Va. lawmakers pass data center tax, preserve exemption

It ended a weeks-long standoff between the House and Senate.
A data center is under construction in Ashburn in Loudoun County, Virginia, on Sunday, July 16, 2023. (AP Photo/Ted Shaffrey)

Virginia lawmakers adopted a compromise budget bill that includes an electricity consumption fee for data centers but keeps in place a sales and use tax exemption that costs the state nearly $2 billion annually. 

If signed by the governor, the state will impose a $0.011-per-kilowatt-hour fee on all electricity consumed at each data center per month, capped at $600 million annually.

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