Data Center Tax Breaks Divide Virginia Lawmakers: States of Play

Feb. 24, 2026, 7:34 PM UTC
A data center in Ashburn, Va.
A data center in Ashburn, Va.
Photographer: Lexi Critchett/Bloomberg via Getty Images

Virginia Democrats are heading into budget negotiations with a major unresolved issue: the massive data centers that have reaped $1.6 billion in sales tax exemptions in the most recent fiscal year, Daniel Moore reports.

  • The Virginia Senate proposed ending the state’s data center tax exemptions, setting up a conflict with a House of Delegates-passed proposal that seeks to extend the program but add restrictions.
  • The future of the data center exemption is the biggest difference on tax policy between budget proposals (HB 30, SB 30) advanced by the respective chambers’ money committees. It comes as more than a dozen other ...

Learn more about Bloomberg Government or Log In to keep reading:

See Breaking News in Context

Providing news, analysis, data and opportunity insights.

Already a subscriber?

Log in to keep reading or access research tools and resources.