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Virginia lawmakers consider data center regulations amid growing concerns

Virginia lawmakers consider data center regulations amid growing concerns
The Cloud
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Virginia lawmakers are taking a look at adding regulations to data centers as more and more pop up across the Commonwealth with chatter about them continuing in Hampton Roads.

Amanda Doughty, a Newport News resident, created a petition opposing any potential data center development in the city, citing environmental concerns.

"The environmental impact we're looking at - increased air pollution, increased water pollution, and water scarcity," Doughty said.

City leaders have been working to clarify that no concrete plans exist for data center development in Newport News.

Last October, a site near Fort Eustis was identified as having potential to house a data center, but Mayor Phillip Jones said no concrete steps have been taken.

"We would love for people to come out and make their voices heard, but there's no proposal. I think people just got ahead of their skis," Jones said.

The Chesapeake City Council rejected a proposal to build a data center in that city last year. Hampton Roads currently doesn't have large-scale data centers, though smaller ones exist in the region.

Virginia is estimated to have 35% of the world's data centers, which help manage and process data across the internet including websites people use daily. Many of them are located in Loudoun County, outside of Washington, D.C.

As data centers continue to expand across the state, lawmakers are now examining whether additional regulations are needed.

"I think there's a lot of different approaches to dealing with data centers," Sen. Scott Surovell (D-Fairfax County).

Several bills in this year's General Assembly would add regulations to the centers. One would require certain developers to report how much water a data center is expected to use. Others would require developers to provide information on the impacts to noise, water supply, and electrical power.

A state report from 2024 found the demand for power in the state could double over the next 10 years with data centers being the main reason. Late last year, state regulators approved a Dominion Energy rate hike, meaning power bills will be going up.

"There's no question going forward data centers are going to run up the cost of electricity and we have to take action before it gets out of control," said Surovell.

Over the next few months, lawmakers will determine what actions to take, but there is caution that it may take time to figure it all out.

"I think this data center conversation is one that's going to take a year or two or three to fully wash out because there's billions and billions and billions of dollars in assets and planned investment out there. We have to make sure we're prudent in how we do it, but there's no question, it's part of the problem and we have to take it head on we cant avoid it anymore," said Surovell.

The centers help bring tax money to the Commonwealth, but there are growing concerns about the costs being passed down to people who live in Virginia.

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