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Bipartisan legislators look to wrangle Virginia’s data center growth

Prince William Co. Delegate Josh Thomas speaks about the high amount of power data centers consume.
Brad Kutner
/
Radio IQ
Prince William Co. Delegate Josh Thomas speaks about the high amount of power data centers consume.

Elected officials from both parties and chambers gathered in Richmond Tuesday to announce new guardrails on the state’s rapidly expanding data center industry. Responsible for billions in state and local revenue, the facilities have still generated outcry from communities.

A state watchdog report found data centers are incredibly profitable. Like ‘$9 billion a year’ profitable. But they’re big, loud, and don’t offer much in the way of jobs once they’re built.

Democratic Senator Russet Perry’s Loudoun County-based district hosts the largest concentration of data centers in the world. She said the period of unregulated growth must come to an end.

“We aren’t here today to talk about reform because there are no laws to reform," Perry said. "The data center industry has largely grown unchecked. Today we are here, though, to present a framework for responsible growth.”

She said new legislation aimed to address four pillars:

Protecting families and businesses via a bill from the Senator which would direct the State Corporation Commission to make sure rate payers aren't responsible for increase energy infrastructure costs.

Enhancing Transparency via a bill from Delegate Shelly Simonds which would require environmental disclosure reports from data centers.

“Constituents are talking to me about DCs and power consumption," Simonds told reporters Tuesday. "That’s the crux of what we’re doing with transparency bills.”

Prince William County Delegate Josh Thomas has an effort that he says also addresses transparency. It aims to require broader site assessments before high energy projects can be approved.

“Control over power is mismatched," Thomas said. "Localities get to control land, and my localities just green lit a 1 gig energy project. But different agencies aren’t talking together, and there's no adult in the room.”

Then there's responsibly managing resources, another Thomas effort dealing with more pre-permitting evaluations and environmental considerations.

The final pilar deals with Incentivizing efficiency. Delegate Rip Sullivan is working with Senator Creigh Deeds, both Democrats. Sullivan called himself an "efficiency nerd," with a plan to add performance standards to existing tax incentives.

"If we’re going to have an industry sucking up so much power, let’s make sure it’s using as little energy as possible,” Sullivan said.

Republican Delegate Michael Webert is co-patron of Perry's bill in the House. He said his rural Northern Virginia district is now dealing with their own power infrastructure issues, including a massive new facility is on track to require high-capacity power lines that his constituents don’t want.

“What we have seen, at least in my district, we’re going to inherit a lot of infrastructure because of energy needs and my constituents are very worried about that,” he said.

Still, few lawmakers are looking to outright ban data centers in their districts. That is except for Senator Danica Roem who called herself the industry's carrion bird of prey. Roem would love to see tax breaks the Commonwealth provided to get the industry started rolled back entirely.

“Amazon, $2.4 trillion corporation, doesn’t need a dime of taxpayer dollars to destroy the environment in western Prince William County,” she said.

Delegate Michelle Maldanado, a tech lawyer who was involved with America Online in the early days of Virginia's data center boom, said there was a middle ground that could help localities and the profitable businesses work together.

"I don't think it's a question if we approve or disapprove of data centers; my role is talking about placement, proliferation and impact," she told Radio IQ. "We need to figure out how we're sharing the costs, not overburdened as residents with the construction. infrastructure and execution of these services."

In a written statement, Josh Levi with the Data Center Coalition told Radio IQ he looks forward to engaging with legislators to ensure continued responsible growth of this essential industry."

This report, provided by Virginia Public Radio, was made possible with support from the Virginia Education Association.

Brad Kutner is Radio IQ's reporter in Richmond.