Virginia Data Center Retail Sales and Use Tax Exemption
Virginia · Va. Code § 58.1-609.3(18)
Virginia exempts qualifying data centers from sales and use tax on servers and related equipment — a key driver of the world's largest data center market in Northern Virginia. Operators must meet capital investment and job-creation thresholds; the exemption runs through mid-2035 with extensions for very large investments.
Technical detail
Va. Code § 58.1-609.3(18) exempts computer equipment for qualifying data centers ($150M investment, 50 jobs at 150% prevailing wage) from July 1, 2010 through June 30, 2035, extendable to 2040 and 2050 per budget-bill amendments.
Who is protected: Not a protective law; benefits qualifying data center operators (indexed for policy transparency)
Who must comply: Data center operators claiming the exemption (must certify investment/jobs via VEDP MOU)
Key facts
| Jurisdiction | Virginia |
|---|---|
| Level | State |
| Status | In effect |
| Protection strength | Limited protection |
| Effective date | 2010-07-01 |
| Enacted | 2010-04-01 |
| Citation | Va. Code § 58.1-609.3(18) |
| Enforced by | Virginia Department of Taxation; Virginia Economic Development Partnership |
| Private right of action | No — agency enforcement only |
| Penalties | Loss of exemption for failure to meet MOU requirements |
| Topics | data-center siting and energy |
| Last verified | 2026-06-10 |
| Official source | Va. Code § 58.1-609.3 — Commercial and industrial exemptions ↗ |
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Related data-center siting and energy rules elsewhere
- Superior WI Data Center Moratorium (1-year) · In effect
- Dane County WI Hyperscale Data Center Moratorium · In effect
- Madison WI Data Center Moratorium (1-year) · In effect
- Manitowoc County WI Data Center Moratorium · In effect
- WA SB 5982 (Data Center / Clean Energy) · In effect
- Dayton OH data center moratorium (180-day, Apr 2026) · In effect
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