STATE INCENTIVES

Virginia Data Center Incentives

Summary • 12 Data Sources

What datacenter incentives does Virginia offer?

Virginia offers: Sales tax exemption on servers, cooling, power equipment. Sales tax exemption: Yes. Property tax abatement: Limited - local discretion. Corporate income tax: 6% corporate. Estimated savings vs national average: 10-15% on equipment purchases.

Key Data Points

  • Sales Tax Exemption: Yes
  • Property Tax: Limited - local discretion
  • Corporate Income Tax: 6% corporate
  • Estimated Savings: 10-15% on equipment purchases
  • Special Programs: Data Center Retail Sales and Use Tax Exemption
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Incentive Summary

Sales Tax Exemption

Yes

Property Tax

Limited - local discretion

Corporate Income Tax

6% corporate

Est. Savings

10-15% on equipment purchases

Special Programs

Data Center Retail Sales and Use Tax Exemption

Key Considerations

⚠Northern Virginia capacity constraints
⚠Rising power costs
⚠Water concerns in Loudoun

Regional Readiness Resources

Federal Tax Credits

Guide to ITC and PTC credits for datacenter power projects.

Data Center Tax Incentive Risk

300+ bills filed in 2026. States rolling back credits as energy costs soar.

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