Northern Virginia houses more data centers than anywhere in the world, and the industry is rapidly growing. Though Hampton Roads does not have any data centers, Virginians statewide could be affected by their energy consumption.
A report issued last month by the Joint Legislative Audit and Review Commission highlighted the environmental and energy costs associated with data centers. If the industry continues to grow unrestrained, the nonpartisan report predicts the state energy demand is projected to double in the next 10 years, largely driven by data centers. That’s a change from the previous decade, when demand was mostly flat due to improved energy efficiency that offset the state’s population growth, according to the report.
The report makes clear that building enough energy infrastructure to satisfy that demand via new solar facilities, wind generation, natural gas plants and increased transmission capacity would be “very difficult.”
Some Virginia lawmakers say the unprecedented growth is unsustainable and will have negative financial and environmental impacts. Last week, a bipartisan group of legislators hosted a news conference promoting a slate of legislation that would seek to regulate data centers based on factors like noise control and energy usage.
“Let me be clear, we aren’t here today to talk about reform, because there are no laws to reform,” said Sen. Russet Perry, D-Leesburg . “The data center industry has largely grown unchecked. Today, we are here to present a framework for responsible growth.”
Resident energy bills could increase by $37 a month by 2040, Perry said. In response, she co-sponsored legislation with Sen. Richard Stuart, R-Montross, that would direct the State Corporation Commission to determine if residents and businesses are subsidizing data centers, and if so, to do what it can to mitigate those cost burdens. That bill and its counterpart in the House have been referred to labor and commerce committees.
Other legislators proposed bills that they say would increase data center transparency. Del. Shelly Simonds, D-Newport News, sponsored a bill that would create a state clearinghouse by July 2026, of data on energy, water use and emissions from high-energy facilities like data centers.
“Increasingly over the last year, I’ve had constituents come to me and say, ‘How much energy are these data centers really using? How much more energy are we going to need in the future?’” she said at the same news conference.
That bill and its Senate counterpart also await a committee vote.
Another bill from Del. Josh Thomas, D-Gainesville, that would require data centers to undergo a site assessment that would examine the noise impact on schools and residential areas, as well as analyze the impact on farmland and forests, advanced to the full House with a divided 13-9 vote. That bill was supported by a wide coalition of environmental, agriculture and forestry groups, but was opposed during a public comment period by data center and economic development advocates.
Vince Barnett with the Virginia Economic Development Partnership voiced his opposition during a public comment period, citing concerns about Virginia’s economic competitiveness and the impact on other industries, like semiconductor and electric vehicle manufacturing.
“The new mandates could cast doubts in the marketplace as to our ability to go get projects online in a timely manner,” he said. “It could also portray to the marketplace that we’re not supportive of other high energy use facilities beyond data centers.”
Another bill from Thomas, calling for a statewide regulatory review that would include environmental and economic assessments before approving high load facilities like data centers, died in a subcommittee Thursday. The bill, voted down 6-0, would have required the State Corporation Commission to approve operations.
Meanwhile, in his State of the Commonwealth speech last week, Gov. Glenn Youngkin urged lawmakers to keep Virginia the data center capital of the world.
“We should also make sure that Richmond is doing what is necessary to support that goal,” he said. “Different communities will make different decisions on data centers, but these must be their decisions, and Richmond should not stop them from capitalizing on these incredible economic opportunities.”
A House subcommittee voted 5-3 Friday to table legislation from Del. Thomas Garrett, Jr., R-Goochland, that would designate authority solely to localities to make land use decisions regarding data centers, as well as solar and wind power.
Kate Seltzer, kate.seltzer@virginiamedia.com
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