Virginia has approved a new electricity tax aimed at data centers, including facilities that generate their own power. The measure is designed to raise significant revenue for the state, with projections indicating the tax could generate up to $600 million per year. Reporting across outlets describes the policy as the first of its kind in the state, shifting the focus of taxation toward electricity use rather than other forms of property or income.
The tax applies to data centers’ power consumption and also covers self-generated electricity, extending the reach beyond facilities that rely solely on the grid. While the specific rate and implementation details are not fully described in the available summaries, the financial impact is presented consistently: the policy is expected to produce roughly $600 million annually. The change is framed as part of Virginia’s budget process and as a testing ground for how states may tax the expanding data center sector. Overall, the sources agree on the measure’s approval, its coverage of data center electricity use, and its projected annual revenue ceiling.
