Loudoun County expects $1.3B tax windfall from data centers

Loudoun County, Virginia, is projected to generate $1.3 billion in tax revenue next year from its approximately 250 data centers. This windfall, driven by taxes on computer equipment and land, is expected to account for 40% of the county’s total tax revenue according to its 2027 fiscal year budget.

The influx of capital from tech giants such as Amazon, Microsoft, and Google has enabled significant local benefits. Over the last decade, residential property taxes in the high-income enclave have decreased by roughly 30%. The revenue has also funded public projects, including a $102 million recreation center, a $22 million park conversion of the former James Monroe estate, and the construction of multiple schools.

Beyond infrastructure, the data center industry has expanded the local workforce by approximately 15,000 people. Buddy Rizer, the executive director for economic development in Loudoun, noted that residents recognize these facilities as the primary reason for maintaining low taxes and funding public services.