UII UPDATE 508 | JULY 2026
Intelligence Update
Virginia's power tax exposes policy trade-offs
6 Jul 2026
4 min read
In late June 2026, the US state of Virginia approved a statewide tax on electricity used by data centers as part of a budget agreement that retained the industry's sales-and-use-tax exemption.
From July 2026 through June 2028, facilities will pay an additional $0.011 per kilowatt-hour ($11 per megawatt-hour). The state's take is capped at $600 million per year. Any excess will be refunded to operators (less administrative costs) on a pro rata basis according to the amount each one paid.
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