Data center moratorium bills stack up ahead of legislative session
Virginia lawmakers have introduced several bills that would pause or restrict new data center development statewide, citing pressure on the power grid, rising electricity costs, water use and community impacts. Industry representatives and electrical workers oppose the proposals, warning they could cost Virginia jobs, tax revenue and investment.
Virginia lawmakers are preparing to debate multiple data center moratorium bills when the General Assembly session begins Jan. 13. Sen. Russett Perry and Sen. Danica Roem have proposed measures that would block new data center permits, related transmission lines and on-site power projects during specified periods, while a separate House proposal would pause zoning and permitting until pending utility interconnection requests are fulfilled or July 2028. Sen. Glen Sturtevant is also planning a moratorium bill.
The proposals address concerns about data centers' electricity demand, transmission infrastructure, rising costs for ratepayers and water consumption from evaporative cooling systems, particularly in eastern Virginia. Gov. Abigail Spanberger has released a broader data center policy framework, and the Department of Environmental Quality is studying groundwater scarcity. The International Brotherhood of Electrical Workers and the Data Center Coalition oppose the moratorium bills, arguing they could jeopardize jobs, tax revenue and billions of dollars in planned investment.