Northern Virginia Technology Council Opposes Early Repeal of Data Center Tax Exemption in Virginia Budget
The Northern Virginia Technology Council (NVTC) warns that a Virginia Senate proposal to end the data center sales and use tax exemption in 2027 would jeopardize the state's competitive edge in digital infrastructure, which has attracted $157 billion in investments. NVTC urges policymakers to maintain the exemption until its 2035 expiration to support long-term economic stability and growth in the technology sector.
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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.
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