Virginia Counties Consider Data Center Restrictions Amid Growth Concerns
Virginia lawmakers and local officials are debating potential restrictions on new data center development due to growing concerns over demands on electricity, water, and infrastructure. State Senator Glen Sturtevant has called for a statewide moratorium, a move Spotsylvania County is considering supporting. Meanwhile, Loudoun County, despite significant tax revenue from data centers, is studying the legality of implementing a local ban.
Virginia is grappling with the rapid expansion of data centers, with over 600 already in operation and hundreds more planned. While these facilities generate substantial tax revenue, particularly for Loudoun County which receives $1.3 billion annually, concerns are escalating over their impact on electricity, water resources, and overall infrastructure. These issues are prompting a reevaluation of development policies across the state.
State Senator Glen Sturtevant has formally requested Governor Abigail Spanberger to implement a statewide moratorium on new data center development. Sturtevant argues that current local zoning decisions are insufficient to address the broad consequences, including water usage, electricity demand, and the extensive transmission lines affecting numerous communities. Spotsylvania County, which already has eight data centers approved, is set to vote on whether to endorse this call for a statewide pause.
Separately, Loudoun County, home to over 250 operating data centers, is investigating the legal feasibility of imposing an outright ban on new facilities at the local level. This action comes despite data centers contributing 45% of the county's annual budget, enabling property tax reductions and increased school funding. The debate highlights a growing tension between economic benefits and environmental and infrastructure strain, as projects move closer to residential areas, leading to increased public opposition.
As a precedent, Maryland's Montgomery and Prince George's counties have already enacted data center moratoriums—18 months and two years, respectively—to allow time for developing regulations to manage industry growth. Governor Spanberger's office has not yet responded to inquiries regarding a potential statewide ban in Virginia.