Virginia lawmakers debate ending a $1.6B tax break for data centers, risking investment and jobs amid grid and fairness concerns.

Virginia lawmakers are debating whether to end a $1.6 billion annual sales tax break for data centers, a policy that helped attract over $80 billion in investment and thousands of jobs. The Senate passed a bill to repeal the exemption, requiring data centers to pay at least a 5.3% sales tax on equipment, citing grid strain, environmental concerns, and fairness to taxpayers. The House, particularly Democrats, opposes the move, warning it could halt future development and break business commitments. The outcome depends on a budget compromise by Saturday, as similar efforts unfold in states like Minnesota, Washington, and Georgia.