State Data Center Legislation Faces Local Zoning Battles

State data center legislation is increasingly highlighting the divide between state efforts to attract data centers through tax incentives and local governments’ focus on local data center zoning, permitting, and energy requirements. Localities like Loudoun County, Virginia, have benefited from data center tax incentives, but resident concerns and local backlash are prompting tighter zoning and permitting rules for new projects. Georgia’s experience shows how local data center zoning restrictions and moratoriums can emerge even as state policymakers support data center growth, with recent ordinances and state-level reviews shaping project approvals. West Virginia has taken a state preemption approach, limiting local authority over data center and microgrid regulation, though some lawmakers are now considering restoring local control. Virginia’s evolving state data center legislation and local regulations reflect ongoing debates over tax exemptions, siting, and energy use, with both state and local leaders seeking a balance between economic benefits and community concerns.