Article

Virginia's annual tax abatement for data centers has surged to $1.6 billion, sparking debate over its effectiveness and impact on the state's economy. Originally aimed at fostering job growth in distressed areas, the incentive has resulted in a booming industry that now accounts for 74,000 jobs, though most data centers have clustered in affluent regions. Critics argue that the substantial tax breaks may be excessive and question their necessity in light of rising energy demands and potential negative effects on state revenue.