The data center business is good in Virginia and the commonwealth is paying for it.
In fiscal year 2018, which ended June 30, Virginia abated $79.2 million in sales and use taxes related to hardware, software and other equipment used in data centers, according to the state’s 2018 Comprehensive Annual Financial Report. That’s a $14 million increase, or 21 percent, over fiscal 2017’s abatement total.
While the exact breakdown is unclear, it’s safe to assume much of that $79.2 million is benefiting data centers in Loudoun County, home to the largest concentration of data centers in the world, with more than 10 million square feet currently in operation and millions more to come from the likes of Cyrus One, Amazon Web Services (NASDAQ: AMZN), Digital Realty Trust (NYSE: DLR) and Google (NASDAQ: GOOG).
The statewide data center tax break exempts computer equipment, enabling software and other enabling hardware from the sales and use tax — 6 percent in Northern Virginia and Hampton…Read the full story from the Washington Business Journal.