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Virginia Loses $1.6 Billion in Tax Revenue Due to Data Center Investments

DATA AND AI INFRASTRUCTURE

Virginia has lost $1.6 billion in tax revenue in fiscal year 2025 due to tax incentives for data center investments, marking a 118% increase from the previous year. The state, home to over 600 data centers, faces rising public opposition regarding the environmental impact of these facilities, while nonprofit Good Jobs First warns that tax exemptions have become nearly automatic, undermining fiscal control. Senator Bernie Sanders has proposed a national moratorium on new data center developments in response to these concerns.

Virginia Loses $1.6 Billion in Tax Revenue Due to Data Center Investments
Jan 9, 2026, 6:19 AM

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