Data Centers Face a New Energy Tax in Virginia's $205 Billion Budget

Data centers face a new energy tax in Virginia's $205 billion budget

Legislators say Virginia will collect $600 million a year with this new tax.

Virginia Lawmakers Strike Data Center Tax Deal After Budget Standoff

WASHINGTON, June 24, 2026 – Virginia lawmakers approved a new tax on data center electricity consumption Monday.The measure was included in a roughly $75 billion biennial spending plan approved by the General Assembly, which retained a separate state tax break for data center operators. Under the compromise, operators will pay a new electricity consumption tax of $0.011 per kilowatt-hour, while retaining a sales-and-use tax exemption that Senate…