Virginia lawmakers prepare data center moratorium bills ahead of January session
Virginia lawmakers are preparing multiple bills that would pause or restrict new data center development statewide, citing rising electricity demand, transmission needs, water use and community impacts. The proposals include moratoriums tied to power-grid interconnection backlogs, while industry representatives warn they could cost Virginia jobs, tax revenue and investment.
Virginia lawmakers are expected to debate several data center moratorium proposals when the General Assembly convenes in January. Sen. Russett Perry's Senate Bill 843 would block state and local approvals for data center permits and related power infrastructure from July 2027 through July 2030, while other bills from Sen. Danica Roem and Del. Irene Shin would pause approvals until Dominion Energy's existing large-load interconnection queue and related infrastructure are addressed.
The proposals reflect concerns about data centers' electricity demand, transmission construction, water consumption and effects on rural communities. Sen. Richard Stuart and Perry have also urged Gov. Abigail Spanberger to address groundwater concerns, while Spanberger has outlined a broader policy framework involving permitting transparency and shifting more transmission costs to data center operators. Industry supporters, including the International Brotherhood of Electrical Workers and the Data Center Coalition, oppose moratoriums and say they could undermine jobs, tax revenue and billions of dollars in planned investment.