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Northern Virginia’s data centers power an enormous share of daily digital life, but their rapid expansion—accelerated by artificial intelligence—is forcing state lawmakers to confront equally enormous demands for electricity.
The region has the world’s largest concentration of data centers, processing 25% of internet traffic in the Americas and 13% worldwide. One Ashburn facility alone averages 31,000 credit card transactions per second.
Demand is expected to double within the next several years. Virginia lawmakers introduced more than 23 data center bills during the General Assembly session, with more than 13 still under consideration as of Monday, Feb. 3.
A December report from Virginia’s Joint Legislative Audit and Review Commission followed a year of research and input from more than 100 stakeholders, including technology advocates, utilities, environmental groups and grassroots activists. The commission found that data centers support more than 74,000 jobs and generate $9.1 billion in annual revenue across Virginia.
Their electricity requirements, however, can be staggering. A data center may consume as much power as 20,000 average homes, while the largest facilities can use the equivalent of more than 1 million homes. By 2040, unconstrained growth could double Virginia’s energy needs.
Expansion also raises concerns about transmission lines, water consumption, noise and construction near historic places. Although the commission described Virginia as relatively rich in water resources, it found room for more efficient use. State and local officials must also weigh effects on farmland, parks, forests and the transition toward a greener energy mix.
Senate Bill 1449 would give localities additional review options for data centers and other high-energy facilities using more than 100 megawatts of power. Local governments could require a sound study when such a facility is proposed within 500 feet of a home or school.
The bill would also let local officials determine whether a site assessment is needed to examine possible effects on nearby water resources, agricultural land, parks, historic sites or forests. Del. Josh Thomas of Prince William County advanced similar—but not identical—legislation that passed the House of Delegates.
The proposal seeks to give localities more information before approving projects without imposing excessive burdens on an industry already governed by local, state and federal regulations.
Data centers have contributed jobs, investment and public revenue in Virginia for roughly 15 years, with Northern Virginia receiving some of the largest benefits. Loudoun County collected $875 million in data center tax revenue in 2024, a 19.5% increase from the previous year. That money has helped the fast-growing county finance public needs while maintaining lower property taxes than neighboring jurisdictions.
Virginia’s challenge is preserving those economic gains while managing the industry’s mounting effects on communities, natural resources and the power grid.