Building a Smarter Future for Virginia: Accountability and Transparency in Data Center Expansion

The Problem: Hidden Costs of Data Centers

 Virginia has become a global hub for data centers, housing some of the largest facilities in the world. While these centers fuel economic growth and technological innovation, their rapid expansion brings significant challenges:

  • Environmental Impacts: High energy demands, increased greenhouse gas emissions, and water usage strain local ecosystems.
  • Community Concerns: Noise pollution, land use changes, and infrastructure burdens affect neighboring communities.
  • Transparency Gaps: Decision-making around data center approvals often lacks public accountability, leaving residents with unanswered questions about long-term impacts.

In response, CCAN Action Fund is calling for stricter standards, greater transparency, and federal guidance to ensure a sustainable balance between growth and community well-being.

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The Solution: 2025 Legislations to Clean Up Data Centers

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Strengthen Accountability

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Promote Sustainability

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Protect Ratepayers

Hold Data Centers Accountable

Tell your Virginia legislators to pass legislation promoting sustainability and accountability. 

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Legislation in 2025 will address these ongoing challenges. These legislations will:

  1. Strengthen Accountability (HB2027): Ensure oversight over massive energy requests by making data center operators report energy and water usage transparently and meet environmental standards.

  2. Promote Sustainability (SB1196): Incentivize renewable energy usage and maximize energy efficiency.

  3. Protect Ratepayers (HB2101 / SB960) : Guarantee that public and utility ratepayers are not made to subsidize the ambitions of the wealthiest corporations in the world. 

These bold legislations will solidify Virginia’s leadership in responsible innovation while protecting communities and natural resources.

Building on Progress: The Deeds/Sullivan Bill

Last year, Virginia legislators Senator Creigh Deeds from Charlottesville and Delegate Rip Sullivan from Fairfax took an important step with the House Bill 116, which: 

  • Enhanced Energy Efficiency Standards: Required data centers to achieve a Power Usage Effectiveness (PUE) score of 1.2 or lower, or comparable energy efficiency standards for co-located buildings.
  • Prioritized Renewable Energy: Mandated that by 2027, data center operators must procure 90% of their electricity from non-carbon-emitting renewable sources, measured on an hourly basis.
  • Promoted Local Economic Development: Encouraged data centers to create high-paying jobs and invest in local infrastructure, particularly in distressed localities with high unemployment and poverty rates.

These measures addressed critical obstacles to renewable energy expansion, paving the way for future clean energy investments in Virginia. These new 2025 legislations will build on this progress, expanding protections and strengthening accountability to ensure data centers and energy projects align with the state’s climate goals and community needs.

Groundbreaking JLARC Study: Key Findings on Data Centers in Virginia

The Joint Legislative Audit and Review Commission (JLARC) has released its pivotal study on the impacts of data centers in Virginia. Key findings include:

  • Economic Insights: Data centers drive significant tax revenues and job creation but disproportionately benefit wealthier localities while straining resources in disadvantaged areas.
  • Energy Challenges: Growing energy demand outpaces supply, with efficiency gains offset by increased computing activity and questions about renewable energy transitions.
  • Policy Recommendations: JLARC suggests reevaluating tax incentives, introducing demand response programs, and strengthening energy planning to ensure sustainability.

This report provides critical guidance for shaping the 2025 legislation and balancing growth with Virginia’s climate and community goals.

What’s at Stake?

Without action, the unchecked growth of data centers could:

  • Overwhelm Communities: Increased traffic, noise, and infrastructure strain without adequate compensation or planning.
  • Exacerbate Environmental Challenges: Rising emissions and resource use could jeopardize Virginia’s climate goals.
  • Significantly increase energy bills: Without guardrails, data center electricity generation and transmission needs are poised to more than double residential electricity bills.s

Take Action Today!

Join us in advocating for a balanced, sustainable approach to data center development:

  • Strengthen Climate Regulations: Urge your legislators to use the JLARC study’s findings to introduce stronger climate regulations for data centers.
  • Promote Justice: Push for data centers’ electricity needs to be paid for by Big Tech, not Virginians.
  • Add Your Voice: Demand that data centers contribute equitably to Virginia’s future.

Together, we can ensure that Virginia leads the way in responsible innovation. Send a message to your Virginia legislators today!

Resources And Key Articles

Resources: 

Key Articles: 

For more information, please contact:
Victoria Higgins, Virginia Director, CCAN Action Fund
vhiggins@chesapeakeclimate.org

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