Virginia forfeited $1.6 billion in fiscal 2025 due to tax breaks for datacenters, marking a 118% increase from the previous year amid the accelerating AI-driven construction surge. Good Jobs First, a nonprofit advocating for corporate accountability, warns that these incentives have practically become obligatory. Virginia’s relatively small requirement of a $150 million capital investment and fifty new jobs to qualify for these exemptions poses a concern given the massive investments typical in hyperscale facilities. These tax breaks include exemptions from retail sales and use taxes on essential technology purchases. Virginia’s Annual Comprehensive Financial Report substantiates the claims, highlighting the ease of qualifying for these subsidies. Greg LeRoy from Good Jobs First cautions that Virginia, like many other states, is engaging in unchecked fiscal giveaways to the datacenter industry, causing significant financial loss. While local leaders affirm datacenter investments drive economic growth, with benefits such as job creation and increased GDP, the debate on whether these tax breaks offer a worthwhile return continues. Grassroots opposition and public campaigns against unchecked datacenter growth are escalating across various states, raising crucial issues of resource consumption and environmental impact. The argument calls for a critical examination of the necessity and effectiveness of such tax reliefs, especially given the looming federal budget constraints and increasing local opposition.