‘Moderate steps’: Expert weighs in on Virginia’s new data center laws

The Virginia General Assembly has enacted several new data center-related bills into law, a month after its regular session concluded. These proposals, which passed both the House and Senate, aim to regulate the rapidly growing tech facilities by addressing concerns such as water usage, noise, and site suitability, as well as increasing transparency around environmental pollution. University of Richmond professor Mary Finley-Brook noted that data centers were a prominent topic throughout the General Assembly session, with more than half a dozen of the 61 proposed bills now signed into law. One key measure will mandate monthly reporting on water and water efficiency. Finley-Brook described the legislative progress as "moderate steps," highlighting that many important bills failed to pass, and approximately 40% of proposals were continued, requiring lawmakers to reach an agreement by November before they expire. An ongoing debate also centers on data center subsidies, a tax break policy in place since 2008 that is tied to the state budget. Finley-Brook criticized the state for providing billions of dollars in tax breaks to a highly profitable industry, suggesting Virginia is not adequately addressing public concerns. Lawmakers are scheduled to return for a special session on April 23 to vote on the budget, with the approved data center laws taking effect within six months to a year.