State · Government

Virginia budget creates temporary data center electricity tax

A budget item levies 1.1 cents per kilowatt-hour on data center operators for two years, subject to an annual general-fund cap and refunds.

Virginia's HB30 budget includes Item 3-5.24, which establishes a temporary electricity-consumption tax of $0.011 per kilowatt-hour on data center operators from July 1, 2026 through June 30, 2028. The item maintains the sales-tax exemption and assigns collection to the State Corporation Commission.