Sen. Surovell discusses the data center sales tax exemption

Virginia Senator Scott Surovell discusses the state's data center sales tax exemption, which was adopted in 2010. He notes that Virginia has now become the largest data center hub in the world, not just in the US, due to the state's internet infrastructure and the growth of companies like AOL and MCI WorldCorp in the Loudoun County area. Surovell argues that the exemption is common in 36-39 other states, as many view the computer chips and equipment in data centers as similar to industrial equipment that is not taxed. He says the policy reasons behind the exemption are sound, but the tremendous growth of data centers in Virginia has made the impact of the exemption more significant. Surovell suggests the state is grappling with the effects of this rapid data center expansion, even though the exemption was well-intentioned when first adopted. The video provides a balanced perspective, acknowledging both the positive and challenging aspects of Virginia's position as a global data center hub facilitated by the sales tax exemption policy.