Democratic leaders in the Virginia General Assembly reached an agreement on a state budget with a compromise on taxing data centers.
The proposed budget agreement, announced last Friday evening, kept the sales and use tax exemption for data centers, which has divided lawmakers in the Virginia Senate and House of Delegates. However, it adds a new data center electricity consumption tax, which would charge a rate of $0.011 per kilowatt hour based on the electricity a data center uses each month.