The World's Largest Data Center Market

Data centers operating in Virginia benefit from densely packed fiber backbones and a massive network of data centers that currently move an estimated 70% of the world’s internet traffic daily, as well as an advantageous cost environment centered on a competitive tax rate, affordable and abundant electricity (with rapidly expanding renewable power options), and competitive construction costs.

Virginia offers an exemption from retail sales and use tax for qualifying computer equipment purchased by data centers that meet statutory investment and employment requirements. Virginia was the first state to allow the tenants of colocation data centers to receive the benefit of the sales tax exemption. In addition, local business property tax rates on computer and related equipment for data centers have been reduced by a number of localities.