Virginia, home to the world's largest data center market, has is now the first state to introduce a new electricity consumption tax.

Virginia has become the first state in the nation to impose a tax on electricity consumption by data centers, a move that could reshape how states approach the rapid growth of digital infrastructure. Beginning July 1, data centers operating in the state are charged $0.011 per kilowatt hour of electricity used, according to state budget officials. The policy arrives as Virginia solidifies its position as the largest data center market in the world, with facilities concentrated in Northern Virginia’s so called Data Center Alley. That concentration has has placed significant strain on the power grid, raising questions about who should bear the cost of that growth. State budget officials project the new electricity tax will generate approximately $600 million annually for Virginia’s general fund, revenue that could be directed toward infrastructure, energy capacity, or other public safety priorities. #Virginia #DataCenters #EnergyPolicy