Virginians Question Power-Hungry Data Centers’ Expansion
Virginia is grappling with a significant expansion of data centers, leading to widespread public opposition due to concerns over high electricity and water consumption. State lawmakers have adjusted tax policies for data centers, while local counties are experiencing both project approvals and rejections amidst community protests and legal challenges.
Virginia is witnessing a rapid expansion of data centers, which has sparked a strong push-and-pull dynamic in the state's politics, with local residents frequently opposing new developments. The Virginia Economic Development Partnership highlights the state's position as the world's largest data center market, benefiting from sales and use tax exemptions through 2032. However, a recent state budget debate maintained this tax break but increased taxes on data center energy consumption.
The Virginia State Corporation Commission reported that utility Dominion Energy has approved 111 new data center projects slated for connection by 2031, with 200 more in review, potentially drawing up to 70 gigawatts of electricity. This power demand, coupled with significant water usage concerns, has fueled growing protests. Activist Sarah Ahmed of the Virginia League of Conservation Voters called for an immediate pause on state data center permitting during a rally at the Virginia Capitol.
Specific county-level developments illustrate the broader issues: Kathryn Hatam from Botetourt County expressed concerns about a proposed Google facility's projected 2 million gallons of daily water use amidst a drought. In Goochland County, Tract filed for a conditional use permit for the Tuckahoe Technology Park, likely to face community complaints. Pittsylvania County officials approved a $100 billion Stack Infrastructure project at the Berry Hill megasite, while an unnamed builder in Loudoun County plans a three-story data center. Franklin County residents are demanding details about a mysterious "Project Flash," potentially involving data centers.
Prince William County has seen two projects, Dulles Cloud South and the Digital Gateway, halted due to rezoning denial and legal challenges, respectively. Both of Virginia's U.S. senators, including Mark Warner, have voiced concerns about data center impacts on water and pollution but do not support a federal moratorium, indicating that policy decisions will remain at the state and local levels.