Gov. Glenn Youngkin has delayed – if not outright killed – implementation of a bipartisan bill that requires data center developers to disclose noise and environmental impacts before receiving local approval.
Following Youngkin’s amendment [last] week, the requirement won’t go into effect until 2026 at the earliest.
Themeasure, which passed both chambers of the General Assembly with broad support, sought to give local governments more oversight of high-energy facilities by mandating site assessments before rezoning or special use permits could be approved.
Instead of signing the bill, Youngkin sent it back to lawmakers with a recommendation that it not take effect unless reenacted by the 2026 General Assembly — a procedural move that puts the legislation on hold indefinitely.
Del. Josh Thomas, D-Prince William, who sponsored the bill, condemned the amendment, calling it “disappointing.”
“Since taking office, I’ve made it a priority to establish common-sense guardrails on the data center industry,” Thomas said in a news release. “HB1601 was carefully crafted with bipartisan input to ensure transparency, to protect our communities, and give local governments the tools they need to make informed decisions.”
The amendment comes amidmounting public pressureto regulate an industry that has brought billions of dollars in investment to Virginia but also sparked concerns about energy use, environmental degradation and industrial development encroaching on residential neighborhoods. Those tensions are most acute in Northern Virginia, which has become thelargest data center hubin the world.
Loudoun, Prince William and Fairfax counties account for theoverwhelming majorityof the state’s data center footprint. In response to the industry’s rapid expansion,residentsandlocal officialshave urged state lawmakers to adopt stricter regulations. Across the region, communities have raised concerns about the constant low-frequency hum from cooling systems, rising water consumption, deforestation and the proximity of new facilitiesto homes, schools and parks.
Thomas’ bill sought to address some of those concerns by requiring developers of facilities projected to use 100 megawatts or more of electricity to conduct noise impact studies for any homes or schools within 500 feet of the site. It also allowed local governments to require additional assessments evaluating potential effects on nearby water resources, farmland, public parks, forests and registered historic sites before approving rezoning or special use permits.
The legislation further required electric utilities to disclose any new substations or major transmission infrastructure needed to serve the facility — a step intended to improve transparency around the broader impacts of new development.
Several days after InsideNoVa.com’s publication of this article, a spokesperson for the governor said Youngkin “believes in local control of key land use decisions, including on data centers” and is reviewing the General Assembly’s actions.
“However, he does not believe the state government should put barriers in the way of commercial development,” the spokesperson, Peter Finocchio, added. “The governor will complete his legislative actions by May 2.”
Youngkin voiced similar views in his January State of the Commonwealth address, where he emphasized that decisions about data center development — like those involving solar projects — should remain with local governments.
Thomas’ proposal was one of more than a dozen data center-related bills introduced this session following a Decemberreportfrom the Joint Legislative Audit and Review Commission, or JLARC, which warned that Virginia’s power grid could soon struggle to meet the industry’s surging energy demands. The report projected that electricity usage from data centers could double the state’s total energy consumption within the next decade, even as Virginia works towardlong-term clean energy targets.
The JLARC study found that while data centers generate substantial tax revenue for localities, especially during the construction phase, the long-term economic benefits are concentrated in a handful of jurisdictions. Many of the industry’s jobs are temporary or contract-based and the facilities often operate with small full-time staffs.
Meanwhile, ratepayers across the state could see higher electricity bills as utilities build out infrastructure to accommodate data center growth. Dominion Energy customers, for example, could face monthly increases of up to $37 by 2040, according to the report.
Those findings prompted lawmakers onboth sides of the aisleto pursue stricter oversight. Del. Michael Webert, R-Fauquier, and Sen. Russet Perry, D-Loudoun,introduced legislationthat would have required the State Corporation Commission, which regulates electric utilities in Virginia, to examine whether data centers were being subsidized by other utility customers.
Del. Rip Sullivan, D-Fairfax, introduced a bill tying Virginia’s sales tax exemption for data centers to clean energy and emissions requirements.
Those proposals — along with others seeking to restrict data center noise, require reporting on water and energy usage and give localities more authority over siting and zoning decisions — were either voted down in committee or left without action before the session ended.
While most state-level efforts stalled this session, some localities have started moving forward with their own reforms.
In September, Fairfax County approved asweeping update to its zoning ordinancethat tightened restrictions on where and how data centers can be built. The changes include a 200-foot setback from residential areas, an 80,000-square-foot cap for data centers in most industrial zones and mandatory noise studies before site plan approval.
Still, the JLARC report cautioned that local zoning rules alone may not be enough. Without stronger state-level oversight or clearer regulatory frameworks, the report said, many jurisdictions may struggle to keep pace with the industry’s rapid expansion.
For Thomas, the governor’s amendment underscores the political headwinds that any reform effort will face.
“While the Governor’s actions are disappointing, I remain committed to fighting for our community, environmental protection, and the preservation of the historic character of our Commonwealth,” Thomas said.
Photo via Jordan Harrison/Unsplash. This article was written by FFXnow’s news partner InsideNoVa.comand republished with permission. Sign up forInsideNoVa.com’s free email subscriptiontoday.
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James Jarvis / Inside NoVA
