VA Data Center Tax Exemption
Virginia Data Center Retail Sales and Use Tax Exemption
Virginia · Va. Code § 58.1-609.3(18)
- Status
- In effect
- Took effect
- July 1, 2010
- Applies to
- Data center operators claiming the exemption (must certify investment/jobs via VEDP MOU)
- Enforced by
- Virginia Department of Taxation; Virginia Economic Development Partnership
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.
Who is protected: Not a protective law; benefits qualifying data center operators (indexed for policy transparency)
Legal 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.
Key facts
| Jurisdiction | Virginia |
|---|---|
| Level | State |
| Strength | Limited |
| Enacted | April 1, 2010 |
| Citation | Va. Code § 58.1-609.3(18) |
| Private right of action | No, agency enforcement only |
| Penalties | Loss of exemption for failure to meet MOU requirements |
| Topics | data-center siting and energy |
| Statute | Va. Code § 58.1-609.3 — Commercial and industrial exemptions |
More AI rules in Virginia
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- Virginia IVO AI Safety Study (SB 384/HB 797, 2026) · In effect
- Virginia VITA EA400 AI Utilization Policy (Executive Branch AI deployment standard, 2026) · In effect
- Virginia SCC data center transmission cost order (2026) · In effect
- Virginia § 15.2-2209.5 data center siting disclosure law (2026) · In effect
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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