General Assembly’s data center tax dispute leaves Va. budget unresolved
News ClipFFXnow·Chantilly, Fairfax County, VA·3/17/2026
A dispute over data center tax exemptions has prevented the Virginia General Assembly from passing a state budget. While some lawmakers want to end the tax breaks due to lost state revenue, others argue it will harm the state's reputation and economy. Community opposition to data centers is also growing, with environmental groups questioning a proposed land sale for a new development.
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Gov: Virginia General Assembly, Board of Supervisors, Virginia Senate, Virginia House, Virginia Economic Development Partnership
A dispute over ending a sales tax exemption on data centers stood in the way of the Virginia General Assembly passing a state budget passing before its regular session ended. Over the past 18 years, Virginia became the world’s largest data hub, but community opposition to data centers has swelled. Most recently, in Fairfax County,