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The Northern Virginia Technology Council (NVTC) expressed opposition to a Virginia Senate budget proposal that would terminate the sales and use tax (SUT) exemption for data center equipment and software on January 1, 2027, eight years earlier than planned. NVTC argues this change could undermine Virginia's position as a leader in digital infrastructure and deter future investments.

The data center sector has driven $157 billion in capital investment, with 79% coming from this industry. NVTC urges the removal of the proposal to maintain the exemption through 2035 to ensure continued economic growth and stability.