Virginia – Data Center Tax Breaks a Good Deal: Report

State and local governments doling out tax breaks to companies building and leasing data centers are a widespread practice, albeit a controversial one, since a new data center doesn’t create nearly as many new jobs as, say, a factory. But the State of Virginia, home to the world’s largest concentration of data centers, has year after year found that its data center tax breaks are a good deal for tax payers.

The state abated $92.2 million in retail sales and use taxes in 2019 on computing gear housed in data centers, Washington Business Journal reported, citing Virginia’s recent Comprehensive Annual Financial Report. That’s just over 16 percent more than it abated in fiscal 2018.

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by Yevgeniy Sverdlik
January 2, 2020