This is, as the kids used to say, stupid on stilts.
From The Register, January 7:
Trillion-dollar internet giants don't need freebies, watchdog warns, as giveaways double in a year
The US state of Virginia forfeited $1.6 billion in tax revenue through datacenter exemptions in fiscal 2025 – up 118 percent on the prior year – as the AI-driven construction boom accelerates.
Good Jobs First, a nonprofit promoting corporate and government accountability, warns these incentives have become essentially automatic.
Virginia's qualification threshold requires just $150 million in capital investment and 50 new jobs, which is modest compared to the billions spent on today's hyperscale facilities. The exemptions cover retail sales and use taxes on computer equipment, software, and hardware purchases.
The disclosure is detailed in Virginia's Annual Comprehensive Financial Report [PDF], which covers the fiscal year ended June 30, 2025.
Good Jobs First claims the tax breaks are getting out of hand as the criteria to become a qualifying recipient are set at a low bar.
Greg LeRoy, executive director at the nonprofit, said: "Like 35 other states, Virginia is losing control of its spending by enacting virtually automatic sales and use tax exemptions, and sometimes other subsidies, for datacenter building materials and equipment."
Recipients may qualify for local property tax reductions on top, he added.
Virginia has the highest datacenter count globally – more than 600 according to some estimates – equating to more than 10 percent of estimated global hyperscale capacity.....
....MUCH MORE
