Every time you make an online purchase, scroll through social media, or check your email, a data center processes the information. Data centers contain storage for computer systems for everyday usage by consumers and businesses, and have grown exponentially in recent years, with usage expected to double in the next few years. Northern Virginia has the largest data concentration center in the world, handling 25 percent of Internet traffic in the Americas and 13 percent of the total in the World. One data center in Ashburn alone averages 31,000 credit card transactions per second. These transactions are a key part of our modern economy, and keep the Commonwealth on the cutting edge of innovation and commerce.
With the rise of artificial intelligence, data center demand is growing even faster than anticipated. More than 23 bills dealing with data centers were introduced in the General Assembly, including my bill, SB 1449. More than 13 of those bills remained under consideration as of Monday, Feb. 3.
After spending a year researching the data center industry and soliciting input from more than a hundred diverse stakeholders, ranging from technology advocates and utilities to environmentalists and grassroots activists, the Virginia General Assembly’s highly respected Joint Legislative Audit and Review Commission (JLARC) released their findings in December. JLARC found that data centers are responsible for more than 74,000 jobs and $9.1 billion in annual revenue in Virginia.
However, data centers are not without some concerns. They require a huge amount of energy to operate. Data center energy usage can vary from the equivalent of the average usage of 20,000 homes to over a million homes. By 2040, unconstrained demand could double our energy needs, and we must balance the economic benefits with the challenges and energy impact of data centers.
Other potential data center challenges include power transmission lines, water usage, noise issues, and construction near historic sites. JLARC says we are a relatively water-rich state, but that usage could be more efficient. We must work with local governments to address these challenges and ensure that we are still on a path to transition to a greener energy mix as the demands around data centers increase.
My Bill, SB 1449, will empower localities to require a sound study before a data center (or other “high energy use facility” that uses more than 100 megawatts of power) can be sited within 500 feet of houses or schools. It will also allow local governments to decide whether a site assessment of potential impacts on nearby resources – such as water, agricultural land, parks, historic sites, or forestland – is appropriate before approving a new facility. Del. Josh Thomas of Prince William has similar, but not identical, legislation that has passed the House of Delegates.
I believe my legislation will strike a reasonable balance: it will empower localities to make more informed choices as they manage responsible data center development, while not overly burdening an essential industry that already falls under many local, state and federal regulations that are intended to protect Virginians.
For the past 15 years, data centers have helped provide economic growth, jobs, and funding for community priorities in the Commonwealth, especially in Northern Virginia.
Loudoun County alone reaped $875,000,000 in 2024 in tax revenue from data centers, an increase of 19.5% from the year before, helping the fast growing county to fund their needs with lower property taxes than neighboring jurisdictions. I am hopeful that we can continue to be a leader in technology and 21st century jobs. If managed correctly, data centers can provide jobs, substantial tax revenue, and further investment in the Commonwealth.