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National Law Review
National Law Review
6/28/2026
The original headline is 9 words: "Virginia Legislature Approves Tax on Data Center Electricity Consumption"

The original headline is 9 words: "Virginia Legislature Approves Tax on Data Center Electricity Consumption"

Original: Virginia Legislature Approves Tax on Data Center Electricity Consumption

Short summary

Virginia approved a $0.011/KWh tax on data center electricity effective July 2026, targeting AI infrastructure with a two-year sunset and $600M annual refund cap. New cooling efficiency standards required in water-scarce areas by January 2027. This may set a precedent for other states considering data center electricity taxes.

  • Virginia imposes $0.011/KWh tax on data center electricity, specifically targeting AI infrastructure facilities
  • Tax includes $600M annual revenue cap that triggers automatic refunds to customers above threshold
  • New water cooling efficiency standards required in water-scarce areas starting January 2027

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