Virginia Senate approves measures for local data center regulations

A bill meant to increase transparency in local government land use decisions for data centers passed the Senate Thursday in a 33-6 vote. 

A nearly identical bill introduced by Del. Josh Thomas, D-Prince William, passed in the House of Delegates on Jan. 23. 

SB1449 requires that project developers submit a sound study for any high energy use facility site proposals within 500 feet of houses or schools. This bill will apply to facilities using 100 megawatts or more power, which could include data centers. 

HB1601 has the same requirements, but it adds that localities must require reports regarding the electrical infrastructure of the project. SB1449 also allows local governments to request a site assessment that would examine potential effects the projects could have on the environment. Both bills will now go to the conference committee.

“I think the legislation strikes a reasonable balance empowering localities to make informed decisions as they manage responsible development,” Sen. Adam Ebbin, chief patron of the bill, said on the floor Thursday.

SB1449 is one in a slew of bills proposed during this year’s session aimed at properly regulating the growth of data centers in Virginia. 

“’I’m proposing this to increase transparency in citing decision decisions for data centers, preserve local control and empower local efficient officials to make the right informed choices for their communities,” Ebbin said to the Local Government Committee on Monday. 

The Local Government Committee reported the bill to the Senate by a 12-3 vote. At the committee hearing, representatives from the Piedmont Environmental Council, International Brotherhood of Electrical Workers’ Local 26 Labor Union, Virginia State Building Construction Trades Council, Mid-Atlantic Pipe Trades Association, Virginia League of Conservation Voters and Virginia Farm Bureau expressed support for the bill.

“This is one of the most pressing issues for national parks across the state of Virginia, and we support the bill,” Kyle Hart said on behalf of the National Parks Conservation Association.

From those who opposed the bill during the committee hearing, Vince Barnett, an industry leader at Virginia Economic Development Partnership, argued that the bill could decrease the competitiveness of projects that drive the economy. He was concerned for not just the data center industry, but also others that would be subsequently impacted by the restricted growth, like semiconductor manufacturing and electric vehicle manufacturing. 

“The bill could portray to the marketplace that Virginia is not supportive of some of our key targeted industries,” Barnett said.

Glenn Davis, director of the Virginia Department of Energy, agreed with Barnett’s concern about putting unnecessary obstacles in the way of economic development. 

“We don’t see a right to force this on localities, to increase the cost of local governments and increase the cost of developments,” Davis said, “when they can do it already in case they desire.”

Local governments already have the ability to request sound studies. While somewhere such as Loudon County may want to require such studies, othersa place like Wise Ccounty might want data centers so much that they shouldn’t have to add the additional cost of conducting the studies, Davis said.

Peter Anderson, director of state energy policy for the Appalachian Voices nonprofit, supported the bill and said he thought itthe bill struck a good balance byin allowing localities to make informed decisions.

“I just wanted to note that historically,” Anderson said, “our organization has supported data center development in Wise County, but we want to thank the senator for bringing this thoughtful bill.”