This text was taken from an email alert sent out on Feb. 13, 2025. Sign up for email alerts →
Dear supporter,
As we move to the final days of this year’s General Assembly session, a few very important pieces of legislation related to data center reform are still being considered by conference committees and voted on.
Now is a critical time to encourage your state senator and delegate to pass remaining legislation that protects Virginians from the unchecked, explosive growth of data centers.
One bill we’re particularly focused on is SB960, which directs the State Corporation Commission (SCC) to examine who is paying for data center energy infrastructure and minimize unreasonable impact to electricity customers that are not data centers. This bill passed the Senate and is now heading to a floor action in the House and likely to a conference committee.
One other bill and a budget amendment also have a chance of passing this session. HB1601 allows a locality to require an assessment of the impacts of a proposed high-energy use facility on surrounding resources. Submitted by Senator Creigh Deeds, Senate Budget Amendment Item 4-14 #7s requires data center operators to meet certain energy efficiency standards to qualify for current data center tax exemptions.
Ask Your State Legislators to Support Data Center Reform Bills
Your voice is urgently needed! Please contact your state legislators and urge them to vote yes on these bills and a budget amendment to make data center development more transparent, sustainable and protect Virginia ratepayers.
In the News
In case you missed them, below are a few links to op-eds and statements from PEC and partners that do a good job explaining the importance of passing data center reform legislation during this General Assembly session:
- Virginia is subsidizing the world’s richest companies. Why? – A column from PEC President Chris Miller in the Richmond Times Dispatch
- Facing data center sprawl and an energy crisis, Virginia lawmakers lept into action. Just kidding. – Commentary from Ivy Main in the Virginia Mercury
- The General Assembly has the Duty to Pass Legislation to Protect Virginia Citizens from Paying Billions for Data Center Infrastructure Costs: Those Costs Belong to Data Center Operators – A statement from PEC President Chris Miller
Conservation community works toward responsible data center development
PEC and partners across the state are working hard toward comprehensive data center reform during this General Assembly session and beyond. This week, the Virginia Conservation Network highlighted the importance of this work in their “Bill of the Day” post.
Below is VCN’s summary of the main areas of focus:
Enhanced Transparency of Data Centers
As localities make decisions about siting data centers, they need to have access to full information about impacts to Virginia’s Energy and water supplies. In 2023, Google data centers in Virginia accounted for about 284 million gallons of water used. One data center can consume over 100 MW of energy, the equivalent of the amount of power consumed by 80,000 households. And yet, information about total energy use and water use by the data center industry is not automatically available to decision-makers who manage our water or energy usage. We must ensure that local governments and the public have full information as they consider data center proposals and monitor existing data centers to enhance statewide planning.
State Oversight of Data Centers
The Commonwealth does not currently have any regulatory oversight of data center development. The state must start playing a larger role in planning for and mitigating the impacts of this explosive industry. Establishing a state-regulatory review process to the existing local review, could help ensure that data center development is happening in a sustainable manner that is sustainable to the Commonwealth as a whole.
Protections for Families and Businesses
Without change, Virginia families and businesses will unfairly bear the costs of data center development. Data centers’ unprecedented energy demand will increase infrastructure costs, which will result in increased energy bills for all ratepayers. The Data Centers in Virginia JLARC report concluded that data centers will nearly triple electricity demand by 2040. We need to prevent households and businesses from shouldering industry risks and subsidizing the billions of dollars in costs associated with the data center industry’s energy infrastructure.
Tax Incentives for Energy Efficiency
Existing state tax incentives attract development but fail to incentivize data center companies to mitigate environmental and community impacts. A revamped tax incentive could encourage data centers to meet higher clean energy and efficiency standards to incentivize best practices that reduce pollution.
Read more on Virginia Conservation Network’s website →
With your help, we believe we can get legislation in place this year to bring about a smarter digital future for our state.
Thank you for staying engaged on this important issue! Please encourage your friends, family and neighbors to weigh in with their legislators by forwarding them this email.
Sincerely,
Julie Bolthouse
Director of Land Use
jbolthouse@pecva.org
