Virginia’s federal lawmakers lock in on regulating data cent...
Virginia's federal lawmakers, led by U.S. Rep. Suhas Subramanyam and U.S. Sen. Mark Warner, have introduced legislation aimed at regulating data center siting, utility costs, and environmental transparency. These bills seek to establish federal guidelines and tariffs to mitigate the impacts of the rapidly expanding data center industry on communities and residential ratepayers.
U.S. Rep. Suhas Subramanyam (D-Loudoun) and U.S. Sen. Mark Warner (D-Va.) have introduced a suite of federal legislative proposals to regulate the data center industry in Virginia, which currently hosts more data centers than any other state. The lawmakers' efforts stem from firsthand experience with data center proliferation in areas like Subramanyam's 10th Congressional District.
Subramanyam's "Data Center Fair Share Act" aims to direct states to implement tariffs on data centers and other large-load users, ensuring these facilities pay for the energy infrastructure built to serve them, thereby protecting residential ratepayers. In Virginia, Dominion Energy has already begun separating data center infrastructure costs, and the State Corporation Commission ordered a tariff for data centers to cover specific transmission line costs. Another bill, the "Responsible Data Center Siting Act," would task the federal government with creating comprehensive guidelines for data center placement to safeguard residents and the environment, citing concerns about unsustainable concentrations of facilities.
Both Warner and Subramanyam have also proposed bills requiring data centers to publicly disclose information on energy and water use, emissions, and backup generation impacts. Warner's proposal further conditions federal tax benefits, such as bonus depreciation for AI data centers, on meeting stringent efficiency and sustainability standards. Subramanyam's bill emphasizes accurate projections of water and power needs to assist localities in planning for necessary infrastructure and resource allocation, as state lawmakers have also tightened restrictions on backup generators, energy consumption taxes, and are developing standards for water use and noise levels.