Virginia is considered the data center capital of the world, with more growth on the way. But now the General Assembly is considering a series of bills that could create new limits as Gov. Glenn Youngkin pushes for continued development.
“I think that we just reached a point where we need to take a look at how do we enjoy the revenue that data centers bring but also be responsible about their growth,” said state Sen. Russet Perry, who represents parts of Fauquier and Loudoun counties.
Lawmakers put a pause on legislation last year until an in-depth study was completed. The study, conducted by the non-partisan Joint Legislative Audit and Review Commission, found data center power demands could cost up to $18 billion, meaning the average homeowner’s utility bill could go up $37 a month.
Perry’s proposal would give the State Corporation Commission — which regulates utility use in Virginia — the ability to make sure regular consumers don’t have to pay for the data centers.
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“Why isn’t the data center industry paying for the infrastructure they require? Why are constituents footing the bill for the entire world?” she said.
Other measures are aimed at controlling the impact on neighborhoods and businesses, like requiring data centers be at least a quarter of a mile away from homes or parks. Proposals also would require more scrutiny of water use and the noise data centers create.
The bills are sponsored by Republicans and Democrats, but the state’s leading Republican says full steam ahead on data centers.
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In Monday’s State of the Commonwealth Address, Youngkin pointed to the $9 billion in gross domestic product from Virginia data centers and urged lawmakers to stay out of it.
“We should continue to be the data center capital of the world,” Youngkin said.
Kathy Kulick leads the HOA Roundtable in Prince William, an organization that’s sounding the alarm about data centers and is heartened by the number of lawmakers backing new limits on data centers.
“Seeing the seriousness of the General Assembly gives us a lot of hope that we will have an environment coming out of this legislative session that will provide the tools for localities to be able to regulate this industry better,” Kulick said.
The bills have been assigned to House and Senate committees that will determine which move forward.