Hampton Roads localities ponder data center development
Localities in the Hampton Roads region of Virginia are re-evaluating data center development due to public backlash. Virginia Beach has enacted a 12-month moratorium on new data center permits and is drafting an ordinance to prohibit traditional facilities. Chesapeake has eliminated by-right data center development and paused new applications, following the rejection of a proposed project.
The Hampton Roads region in Virginia, a state leading in data center numbers, is experiencing growing public and local government scrutiny over data center development. In response to concerns regarding water and electricity usage, noise, and air pollution, several localities are enacting or considering stricter regulations.
Virginia Beach City Council unanimously approved a 12-month moratorium on new data center permits in August, preventing projects from proceeding by right while staff develops new regulations. This action follows a June directive to draft an ordinance that would prohibit traditional data centers and hyperscale facilities, allowing only colocation and subsea cable landing sites with conditional use permits. Virginia Beach Mayor Bobby Dyer expressed strong opposition, calling large data centers "not good neighbors."
Similarly, Chesapeake City Council recently eliminated by-right data center development, now requiring city council approval through conditional use permits. This decision followed the council's rejection of a significant 350,000-square-foot data center proposal in June 2025 near the Etheridge Lakes neighborhood. Chesapeake also imposed an eight-month pause on new data center applications and restricted connections to groundwater.
Suffolk, currently without data centers, is proactively preparing for potential interest from developers. Suffolk City Council has directed its planning commission to draft an interim ordinance explicitly prohibiting data centers, with long-term regulations expected by 2027. Other Hampton Roads cities like Norfolk, Newport News, Portsmouth, and Hampton are in earlier stages of discussion, reviewing existing zoning, developing digital infrastructure plans, or gathering information to inform future policies.