Virginia lawmakers propose moratoriums on new data centers
Virginia lawmakers are proposing several bills that would pause new data center approvals statewide, with proposed moratoriums lasting until 2028 or 2030 and another tied to Dominion Energy’s interconnection queue. Supporters cite rising electricity costs, transmission construction and groundwater concerns, while industry representatives and labor groups warn that restrictions could cost Virginia jobs, tax revenue and investment.
Virginia lawmakers are preparing multiple bills for the upcoming General Assembly session that would halt or restrict new data center development statewide. Sen. Russett Perry’s Senate Bill 843 would bar localities and state agencies from approving data center permits from July 2027 through July 2030, while also blocking infrastructure built solely to serve the facilities. Sen. Danica Roem and Del. Irene Shin have proposed related measures tied to Dominion Energy’s backlog of large-load interconnection requests, and Sen. Glen Sturtevant plans to introduce another moratorium bill.
The proposals reflect concerns over data centers’ impact on Virginia’s power grid, ratepayers, transmission infrastructure, water supplies and rural communities. Lawmakers cited groundwater reports and the heavy water use of evaporative cooling systems, while Gov. Abigail Spanberger’s policy framework calls for greater permitting transparency and shifting more transmission costs to data centers. The International Brotherhood of Electrical Workers and the Data Center Coalition oppose moratoriums, arguing they could undermine jobs, tax revenue and billions of dollars in planned investment.