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Virginia’s data centers have become essential engines of commerce, but their accelerating demand for electricity is forcing the commonwealth to confront how—and where—the industry should continue growing.
Every online purchase, email check and social media scroll relies on a data center. Northern Virginia has the world’s largest concentration of these facilities, handling 25% of internet traffic in the Americas and 13% worldwide. A single Ashburn data center averages 31,000 credit card transactions per second.
The industry supports more than 74,000 Virginia jobs and generates $9.1 billion in annual revenue, according to findings released in December by the Joint Legislative Audit and Review Commission. For 15 years, data centers have helped fund community priorities and drive economic growth, particularly in Northern Virginia.
Loudoun County collected $875 million in data center tax revenue in 2024, up 19.5% from the previous year. That money has helped the rapidly growing county meet its needs while maintaining lower property taxes than neighboring jurisdictions.
But the expansion of artificial intelligence is pushing demand beyond earlier expectations. More than 23 data center bills were introduced in the General Assembly, and over 13 remained under consideration as of Monday, Feb. 3.
The most pressing concern is energy. Depending on its size, a data center can consume as much electricity as 20,000 homes—or more than 1 million. Unconstrained growth could double Virginia’s energy needs by 2040.
New facilities can also bring transmission lines, noise, water consumption and construction near historic sites. Although JLARC described Virginia as relatively rich in water resources, it found room for more efficient use. State and local officials must address these effects without abandoning the transition toward a greener energy supply.
SB 1449 would give localities additional tools to evaluate proposed data centers and other high-energy facilities using more than 100 megawatts of power. Local governments could require a sound study when such a project is proposed within 500 feet of homes or schools.
The measure would also let local officials decide whether developers should assess possible effects on nearby water resources, farmland, parks, forests and historic sites before receiving approval. Del. Josh Thomas of Prince William has advanced similar, though not identical, legislation through the House of Delegates.
The goal is a reasonable balance: help localities make better-informed development decisions without placing excessive burdens on an important industry already governed by local, state and federal rules.
Virginia can remain a leader in technology and 21st-century employment while responding responsibly to rising energy and land-use pressures. With careful management, data centers can continue delivering jobs, major tax revenue and investment without allowing their rapid expansion to outpace the communities that host them.