Virginia

Virginia has enacted a new electricity tax specifically targeting data centers, including those with self-generated power, which is anticipated to yield approximately $600 million in annual revenue.

Data centers in Virginia may soon be required to demonstrate environmental sustainability metrics to qualify for existing significant tax exemptions.

Virginia forfeited $1.6 billion in state tax revenue during fiscal year 2025 due to datacenter tax exemptions, a figure that has more than doubled year-over-year amid rapid AI-driven construction.