Sales tax breaks to lure data centers booming in Virginia
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The Virginia Economic Development Partnership tracks companies eligible for the tax breaks but said it doesn’t collect data on which companies actually take the credits and for how much. VDEP’s records from January show all but one of the 25 data centers eligible for the tax breaks are in Northern Virginia and the Richmond area, or within an easy drive.
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Virginia has about 700 data processing, hosting and related establishments, but to be eligible for the state tax breaks on computers and related equipment, companies have to spend at least $150 million and meet certain hiring and salary thresholds.
Nearly 70 percent of the data centers eligible for state tax breaks are in Loudoun, Fairfax and Prince William counties, some of the wealthiest counties in the country. Northern Virginia, and Loudoun in particular, has become a top tier destination for data centers thanks to a strong digital infrastructure, relatively low energy costs, available land, proximity to federal agencies and an educated workforce.
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