RICHMOND, Va. — A bipartisan coalition of lawmakers introduced a series of bills Tuesday at the General Assembly aimed at regulating Virginia's data center industry, which is particularly robust in Northern Virginia and parts of Central Virginia.
The effort follows a nonpartisan report released last month that highlighted the environmental and energy costs associated with the state's leadership in data centers. The lawmakers emphasized that unchecked growth could lead to increased utility bills for consumers.
The proposed legislation focuses on four main areas: protecting localities, enhancing transparency, managing resources, and incentivizing efficiency.
One key aspect of the bills is classifying data centers as a different customer category to ensure residential users do not disproportionately shoulder the costs of new infrastructure necessitated by the data centers’ expansion.
Watch: New report sheds light on data center impact on Virginia neighborhoods
Another proposed measure mandates that data centers disclose their energy and water consumption.
“We are not trying to say, ‘No data centers’ or anything like that. But, what we are trying to say is that our communities deserve a seat at the table. Their voice matters,” said Senator Russet Perry (D-Loudoun). “That’s who we represent – the actual constituents. And the growth we have right now is not sustainable.”
Lawmakers are confident they have sufficient support to advance the majority of the bills to Governor Glenn Youngkin for approval.
During his State of the Commonwealth address yesterday, Governor Youngkin expressed his desire for Virginia to maintain its status as the world’s data center capital but emphasized that localities should have the authority to determine whether to continue new data center developments.
The December 2024 report highlighted the industry’s economic impact, reporting that data centers generate billions of dollars and create thousands of jobs annually.
However, it noted that many of these positions are temporary construction jobs and pointed out the growing strain the industry places on the state’s infrastructure, particularly the power grid.
Data centers are significant consumers of energy and while they pay for their electricity, the rising demand may necessitate expansions of utility infrastructure, potentially increasing costs for other consumers. The report also raised environmental concerns regarding the impact of data centers on natural and historic resources.
"Data Center Coalition (DCC) is in the process of reviewing legislative proposals, some of which reflect JLARC’s recommendations and findings," Josh Levi, president of the Data Center Coalition, said in a statement. "We look forward to engaging with legislators during the 2025 session to ensure continued responsible growth of this essential industry."
CBS 6 is committed to sharing community voices on this important topic. Email your thoughts to the CBS 6 Newsroom.
📲: CONNECT WITH US
Blue Sky| Facebook| Instagram| X| Threads| TikTok| YouTube
This story was initially reported by a journalist and has been converted to this platform with the assistance of AI. Our editorial team verifies all reporting on all platforms for fairness and accuracy.
