Elected officials from both parties and chambers gathered in Richmond Tuesday to announce new guardrails on the state’s rapidly expanding data center industry. Responsible for billions in state and local revenue, the facilities have still generated outcry from communities.
A state watchdog report found data centers are incredibly profitable. Like ‘$9 billion a year’ profitable. But they’re big, loud, and don’t offer much in the way of jobs once they’re built.
Democratic Senator Russet Perry’s Loudoun County-based district hosts the largest concentration of data centers in the world. She said the period of unregulated growth must come to an end.
“We aren’t here today to talk about reform because there are no laws to reform,” Perry said. “The data center industry has largely grown unchecked. Today we are here, though, to present a framework for responsible growth.”
She said new legislation aimed to address four pillars:
Protecting families and businesses via a bill from the Senator which would direct the State Corporation Commission to make sure rate payers aren’t responsible for increase energy infrastructure costs.
Enhancing Transparency via a bill from Delegate Shelly Simonds which would require environmental disclosure reports from data centers.
“Constituents are talking to me about DCs and power consumption,” Simonds told reporters Tuesday. “That’s the crux of what we’re doing with transparency bills.”
Prince William County Delegate Josh Thomas has an effort that he says also addresses transparency. It aims to require broader site assessments before high energy projects can be approved.
“Control over power is mismatched,” Thomas said. “Localities get to control land, and my localities just green lit a 1 gig energy project. But different agencies aren’t talking together, and there’s no adult in the room.”
Then there’s responsibly managing resources, another Thomas effort dealing with more pre-permitting evaluations and environmental considerations.
The final pilar deals with Incentivizing efficiency. Delegate Rip Sullivan is working with Senator Creigh Deeds, both Democrats. Sullivan called himself an “efficiency nerd,” with a plan to add performance standards to existing tax incentives.
“If we’re going to have an industry sucking up so much power, let’s make sure it’s using as little energy as possible,” Sullivan said.
Read the full article: https://www.wvtf.org/news/2025-01-14/bipartisan-legislators-look-to-wrangle-virginias-data-center-growth
