NORTHERN VIRGINIA
The Active Infrastructure team has deep knowledge, experience, and relationships in the Northern Virginia market, having advised on dozens of data center and other industrial/commercial developments over the past ten years, representing well over $1 billion of new construction. While there are lingering concerns about power availability constraining the long-term growth of data centers in the region, there continues to be strong interest and demand among customers to site data centers in Northern Virginia.
Latency
Northern Virginia is home to one of the most abundant fiber and telecommunications networks on the planet. Service providers and end users continue to make significant investments to provide capacity for data center, aerospace, defense, finance, government, military, and other technology-intensive users offering low-latency connectivity to the major fiber backbones.
Taxes & Incentives
Data centers may qualify for the Virginia Data Center Sales Tax Exemption by investing $150 million in new capital investment and creating a minimum of 50 new jobs located at the data center that meet certain compensation requirements. The exemption is set to expire in 2036.
The three major Northern Virginia counties of Fairfax, Loudoun, and Prince William do not offer exemptions from personal property tax for data center-related equipment or other local incentives. Limited incentives are available in outlying counties for operations located in specially designated areas or technology zones.
The Virginia Economic Development Partnership is responsible for administering the Commonwealth’s data center tax incentive program.