Source: Fortune.com
Summary
Virginia senators have voted to end a $1.6 billion annual tax break for data centers, requiring the industry to pay a minimum 5.3% sales tax. The proposal has sparked opposition, with some warning it could halt data center construction in the state. The tax break has been in place for nearly two decades and has led to Virginia becoming the world’s largest data hub. The debate comes as communities nationwide are pushing back against data centers, citing concerns over power consumption and noise.
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The numbers tell one story.
Virginia’s data center tax break, once a perk, is now a point of contention. The industry has invested over $80 billion in the state, but some lawmakers are rethinking the tax breaks. Amazon Data Services recently bought land for a new data center, while others, like the Data Center Coalition, warn the tax would “effectively halt investment.” Amid a national pushback on data centers, Virginia’s debate is just the beginning.
The strategy enters a familiar phase: when tax breaks expire, the real negotiations begin.
Author: Evan Null
