Virginia Lawmakers Seek to Regulate Booming Data Center Industry

Virginia legislators are pushing for new regulations on the rapidly growing data center industry to address energy and environmental concerns

Virginia Lawmakers Seek to Regulate Booming Data Center Industry
Virginia Lawmakers Seek to Regulate Booming Data Center Industry

Richmond: A bipartisan group of lawmakers is stepping up to tackle the booming data center industry in Virginia. They’ve introduced several bills aimed at regulating this rapidly growing sector.

With the session moving fast, both parties are prioritizing this issue. Senator Russet Perry, representing a district with many data centers, pointed out that the industry has been mostly unregulated for years.

Concerns have grown after a study showed that energy demand from these centers could skyrocket by 183% in the next 15 years. This could lead to higher energy bills for residents, potentially adding $37 a month.

Perry emphasized that taxpayers shouldn’t have to shoulder the costs of infrastructure needed for these tech hubs. Meanwhile, Governor Glenn Youngkin wants Virginia to be the top data center state but insists local control over solar projects must remain intact.

While data centers have brought in $9 billion to the state, there are worries about their environmental impact. The need for more power lines and infrastructure is a hot topic as the industry keeps expanding.

Senator Danica Roem expressed that taxpayer money shouldn’t support an industry with multi-trillion dollar companies. Lawmakers are collaborating on several bills to ensure responsible growth.

Some key proposals include preventing residents from subsidizing energy costs for data centers and requiring environmental tracking of these facilities. There’s also a push for local assessments on noise impacts and a review process for high-energy facilities.

Del. Rip Sullivan has introduced a bill linking state tax breaks to energy efficiency standards. Roem is also advocating for data centers to be built only in industrial zones.

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