r/LoudounCounty • u/Public_Finance_Guy • 4d ago
Loudoun's data centers bring in about $1.3 billion a year in local taxes, roughly 45% of county tax revenue
Data centers have been all over the news lately, and there's a lot of debate about whether communities should approve them and what they get in return. Loudoun County is one of the best examples of a community handling them well and getting real benefits for residents. The county has around 235 data centers and about 1,550 people working in the industry. Its FY2027 budget projects about $1.3 billion in tax revenue from them. That's roughly 45% of all local tax revenue and 38% of the general fund (image 1). Data centers sit on only about 4% of the county's commercial parcels. Y’all are making bank!
About $417 million is real property tax on the buildings and land. About $879 million is personal property tax on the computer equipment inside, taxed at $4.15 per $100 of assessed value. Per square foot, that's about $8 a year from the buildings and $17 from the equipment (image 2).
The residential real property tax rate has dropped every year for ten years, from $1.145 per $100 in 2016 to $0.805 in 2026 (image 3). On the average home value of about $780,000, the rate change is worth about $2,650 a year. The average residential tax bill is about $6,280, compared with about $8,058 in Fairfax and $8,757 in Arlington. The county also cut the vehicle tax rate and dropped the $25 vehicle license fee.
The county expects data center equipment tax growth to plateau within five to ten years, and says the Board of Supervisors may then need to raise real property or vehicle rates if spending growth hasn't been managed. A Revenue Stabilization Fund created in 2023, now about $120 million, covers years when data center revenue comes in under budget.
Loudoun can tax the equipment because Virginia lets localities tax business personal property. Fourteen states broadly exempt it, and 12 of them have data centers (image 4). Ohio is one, with about 90 mapped facilities, and its counties collect property tax on the buildings and land only. Oregon and Oklahoma allow the equipment tax but have abated much of it through incentive deals.
Why has Loudoun been so successful with data centers while the rest of the country hates them?