Virginia Budget Stalled as Data Center Tax Fight Continues

Name: Virginia Budget Stalled as Data Center Tax Fight Continues
Uploaded: 2026-05-07T16:45:00.000Z
Duration: 3 min 21 s
Description: Virginia's 2026-27 state budget is stalled due to an ongoing dispute between the House and Senate over whether to eliminate or extend a sales tax exemption for data centers. This exemption is estimated to reduce state revenue by $1.6 billion to $1.9 billion annually.

News Clip3:21The Center Square·VA·5/7/2026

Virginia's 2026-27 state budget is stalled due to an ongoing dispute between the House and Senate over whether to eliminate or extend a sales tax exemption for data centers. This exemption is estimated to reduce state revenue by $1.6 billion to $1.9 billion annually.

government

Gov: Virginia House of Delegates, Virginia Senate

The Center Square Daily reports that Virginia's 2026-27 state budget has not been finalized due to a significant disagreement between the House and Senate. The central point of contention is the state's sales tax exemption for data centers.

This policy, which currently benefits data center operators, is estimated to cost Virginia between $1.6 billion and $1.9 billion annually in lost revenue, according to state budget analysis. Lawmakers are currently debating whether to eliminate this costly exemption or to extend it, leading to the budget's stalemate. The report was presented by host Esther Wickham.