Increased transparency, oversight, ratepayer protection, and better tax policy is the only way to protect Virginians from the “crisis by contract” situation that’s been created.
Contact: Mike Doble, The Piedmont Environmental Council
[email protected]; 703-579-7963
RICHMOND, Va. (December 9, 2024) – The Joint Legislative Review Commission, or JLARC, commissioned by the General Assembly, published the results of its year-long study on the exponential growth of data centers in Virginia. The commission considered the impacts on Virginia’s energy demand and supply, ratepayers, and natural, historic and cultural resources, as well as air and noise pollution and the ability to meet the state’s renewable energy goals. In 2024, the General Assembly voted to defer action on all seventeen data center reform bills until the results of the study were complete. They are now complete and there is no excuse to delay action any longer.
“We applaud the commission’s work over the past year to assess the scope of economic, energy, and environmental impacts due to explosive data center growth. But their analysis of the impact on communities, the environment and the historic and cultural resources is insufficient, and their recommendations don’t match the severity of the impact. There are immediate steps the General Assembly can take in the 2025 legislative session to mitigate the unfettered development and energy ‘crisis by contract’ Dominion Energy has created. We support legislative solutions for a more transparent, responsible and sustainable plan for future data center development” said Piedmont Environmental Council President Chris Miller. “We look forward to working with legislators and state agencies to build a smarter digital future.”
JLARC acknowledged that these energy demands are “unprecedented” and the study confirms the concerns that have been repeatedly raised about exploding energy needs, cost to ratepayers, and inconsistency with the policies of the state including the Virginia Clean Economy Act. However, it does not go far enough to adequately recognize the full scope of impacts that come from the scale of the data center development and energy demand described. Communities are increasingly seeing massive land conversion and other types of developments such as residential and commercial being pushed out by data center development.
The use of eminent domain to build transmission lines to serve these developments is increasingly getting media attention and raising concerns about equity and fairness. Although their study showed current regulations require DEQ permits for on-site generators, they failed to recognize the cumulative impact of the local air pollution in a concentrated area and that we’re increasingly seeing data center developers turn to onsite gas power generators to support primary power needs due to lack of power availability on the grid.
Similarly, they failed to recognize that these concentrated data center hubs are often consuming water from the same watershed and adding large expanses of impervious surfaces reducing groundwater recharge in the area exacerbating future water supply challenges.
The Piedmont Environmental Council and the Virginia Data Center Reform Coalition are advocating for a smart development approach that includes four main pillars of reform:
- Enhanced transparency
- State oversight
- Ratepayer protection
- Incentivization of sustainability.
These four pillars provide a framework for responsible action and robust reform. However, each can stand alone and be instituted independently. This is not an all-or-nothing approach. Taking action on any one of them would help improve the currently out-of-control situation, and the General Assembly will have the opportunity to address these issues in the upcoming session.
“Going forward, it is critical to have state level oversight and a transparent and robust discussion of the impact of the data center industry on Virginia citizens, ratepayers, communities, and natural resources. The JLARC report confirms a more than doubling of the state’s energy infrastructure is likely needed due to data centers demand for electricity. If the General Assembly fails to act, the impact on Virginia ratepayers, which includes families, schools, local hospitals, health care providers and small businesses, will be disastrous. It’s not a matter of ‘if’ but ‘when’,” said Miller.”
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The Piedmont Environmental Council (PEC) works to protect and restore the lands and waters of the Virginia Piedmont, while building stronger, more sustainable communities. Founded in 1972, PEC is a locally based, community-supported 501(c)3 nonprofit and accredited land trust. At the core of PEC’s approach is a focus on educating, engaging and empowering people to effect positive change in their communities.