Warner pushes data center 'guardrails' as Northern Virginia electric bills climb
U.S. Senator Mark Warner is pushing for federal legislation to establish "guardrails" for data center growth, citing rising electricity costs for consumers in Virginia. This initiative aims to address power demand, water use, and environmental concerns while preserving local land-use authority, as exemplified by Hanover County's recent rejection of a large data center project due to resident opposition. Concurrently, the City of Alexandria is fighting utility rate increases, partly driven by data center electricity demand, before the State Corporation Commission.
U.S. Senator Mark Warner (D-Va.) announced his intention to introduce comprehensive federal legislation aimed at establishing "guardrails" for the data center industry, a move prompted by escalating energy costs in Northern and Central Virginia. Speaking from the U.S. Capitol, Warner highlighted constituent concerns about electric bills, which he attributes in part to the rapid growth of data centers. He supports the Power for the People Act, a bill introduced by Senator Chris Van Hollen (D-Md.), which would require new data centers to demonstrate they will not increase energy costs for nearby consumers. Warner plans his own broader proposal to address consumer protections, national security, and workforce retraining.
Warner emphasized that a federal framework would provide nationwide consistency, while still allowing states to implement additional incentives or restrictions. His proposed standards would cover not only electricity costs but also data centers' water usage, necessary setbacks from residential areas and roads, and the environmental impact of diesel-fueled backup generators. He reiterated that land-use decisions should remain at the local level, citing Hanover County's recent 4-3 vote on May 27 to deny the 430-acre Mountain Road Technology Park project following significant resident opposition over water, power, and rural character concerns. He also called for greater scrutiny of nondisclosure agreements between localities and data center developers.
Concurrently, the City of Alexandria is actively challenging utility rate increases closer to home. Mayor Alyia Gaskins confirmed last week that the city has intervened in four cases before the Virginia State Corporation Commission, including two involving Dominion Energy, to mitigate potential rate hikes. Gaskins noted that rising electricity demand from data centers contributes to higher utility costs statewide, framing the city's efforts as essential for easing economic strain on residents. Senator Warner echoed this sentiment, linking data center growth to broader affordability issues for Virginians.