Virginia Officials Discuss Data Center Impact Amid Calls for Moratoriums and Stricter Regulations
Data centers in Virginia are a bipartisan concern due to their impact on climate change, energy consumption, and water resources. State and federal representatives are advocating for policies like a statewide moratorium, stricter regulations, and utility cost protections to address these issues. The Virginia SCC has already ordered Dominion Energy to make data centers pay for new infrastructure, and an environmental report highlighted aquifer declines due to water use.
Rep. Jennifer McClellan, D-VA, hosted a town hall where data centers became a central topic, highlighting Virginia's status as a global data center hub with environmental and economic concerns. Discussions focused on the industry's contribution to climate change through fossil fuel reliance, diesel generator emissions, and substantial water consumption, leading to strain on natural resources and increased utility bills for residents in areas like Richmond, Henrico, and Hanover Counties.
Policy actions are underway and being proposed to mitigate these impacts. The Virginia State Corporation Commission recently directed Dominion Energy to implement a policy requiring data centers to fund their own transmission lines and substations, preventing costs from burdening general customers. Additionally, a Virginia Department of Environmental Quality report identified that high data center water use is causing declines in a critical aquifer, prompting calls for stricter groundwater regulations.
Legislative efforts include State Senator Glen Sturtevant's request to Governor Abigail Spanberger for a statewide moratorium on data center development, citing grid stress, water usage, and rising utility costs. This was followed by a similar request from State Senators Richard Stuart and Russet Perry for a special legislative session on groundwater strain. Federal-level discussions also involve proposals like the Ratepayer Protection Act to shield Virginians from data center-related expenses, while Rep. Frank Pallone Jr. of New Jersey has called for a national moratorium.
Environmental organizations like the Sierra Club Virginia Chapter, represented by communications director Tim Cywinski, view data centers as a significant obstacle to clean energy, noting the problem has worsened with the advent of AI, leading to larger scale and water consumption. Cywinski emphasized the lack of protections for Virginians regarding data center proximity, water use, and backup generation.