Virginia Senate Votes to End $1.6 Billion Tax Break for Data Centers

Virginia Senate votes to end $1.6 billion tax break for data centers

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Virginia's starting to question whether its giant tax breaks for data centers are such a good idea

Virginia senators have voted to end a projected $1.6 billion annual tax break, requiring the industry to resume paying a minimum 5.3% sales tax.

Virginia Officials Debate Whether It's Time to Scrap Tax Breaks for Data Centers

RICHMOND, Va., March 11, 2026 (AP) — 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 pr…