
Question posed to Microsoft CoPilot : How much tax revenue do data centers generate in Virginia? How is that revenue split between state and local government?
Answer: State tax revenue from data centers: โโฏ$1.5โฏbillion annually
The Northern Virginia Technology Councilโs 2026 economic impact report finds that data centers contributed over $1.5โฏbillion in annual state tax revenue in 2025.
This includes:
- Corporate income tax
- State sales/use taxes except the exempted equipment
- Individual income tax from dataโcenter employees
- Other stateโlevel business taxes
Local tax revenue: โ $1.3 billion (property taxes alone)
The same NVTC report finds about $1.3โฏbillion in local property taxes in Northern Virginia alone, even after incentives.
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