This research paper explores the feasibility, methods, and implications of taxing virtual infrastructures within the evolving digital landscape and economy; considering the proliferation of digital assets, online transactions, and virtual entities, the taxation of virtual infrastructures becomes imminent as an avenue for government to accumulate revenue for effective government administration. The paper examined the objectives of the study through primary data collected from 320 tax professionals and 297 IT experts to explore the impact of virtual infrastructure taxation on government revenues, the feasibility of taxation models, its effects on innovation and investment in the digital sector, and the challenges of cross-border tax strategies. Findings show that although taxation of virtual infrastructures significantly enhances government revenues, contributing to fiscal sustainability and the funding of public services and infrastructure projects, measures must be put in place to cushion the effect of such taxation on investment and innovation in the digital economy, as the taxation of virtual infrastructures were found to hamper investment and innovation significantly. Also, the implementation of modified traditional and emerging taxation models is shown to increase the feasibility of taxing virtual infrastructures, offering opportunities to enhance government revenues while fostering digital innovation. Data analysis, including Pearson correlation and linear regression methods, was employed to assess the relationships between the variables. Moreover, cross-border tax strategies are found to have negative implications for the taxation of virtual infrastructures, including profit shifting, transfer pricing, and competition among countries to attract digital firms. International cooperation and comprehensive tax reforms are suggested to address these challenges and ensure equitable tax contributions. The study underscores the significance of global collaboration in addressing cross-border taxation challenges and recommends the integration of modern tools and technologies to streamline tax processes while developing modified tax methodologies and policies that suit the digital economy.