Virginia data center plan targets costs as tax benefits rise – The Center Square

Virginia data center plan targets costs as tax benefits rise  The Center Square

(The Center Square) – Virginia’s new data center accountability framework limits some state assistance and proposes shifting more infrastructure costs to the industry as reported tax benefits for data center A data center under construction in Northern Virginia's 'Data Center Alley.' Photo: Morgan Sweeney (The Center Square) – Virginia’s new data center accountability framework limits some state assistance and proposes shifting more infrastructure costs to the industry as reported tax benefits for data center operators rose nearly 50% to $1.9 billion in fiscal 2025. Gov. Abigail Spanberger signed Executive Order 22 on Friday as part of the framework, which combines immediate executive action with proposals expected to go before the General Assembly in 2027.

A January report from the Virginia Department of Taxation and the Virginia Economic Development Partnership found operators reported about $1.9 billion in tax benefits in fiscal 2025, up from about $1.3 billion in fiscal 2024. The figures were self-reported and not independently validated by either agency. The report says the benefit reflects tax savings to operators and the corresponding state and local revenue impact. Senate President Pro Tempore Louise Lucas said Friday the framework does not end what she described as nearly $2 billion in sales-tax exemptions for data centers and said she expects lawmakers to pursue additional legislation during the 2027 session. The commonwealth also