Virginia’s General Assembly has postponed two proposed bills aimed at regulating data center development. House Bill 155, introduced by Del. Josh Thomas, and Senate Bill 619, by Sen. Kannan Srinivasan, sought to give the State Corporation Commission (SCC) authority to evaluate the environmental and energy impacts of projects requiring over 25 megawatts of power. The bills also proposed a review of the effects on utility rates and grid reliability.
Despite support from Srinivasan, whose bill passed the Senate with bipartisan backing, both measures faced strong opposition and were tabled. Opponents, including Dominion Energy and the Data Center Coalition, argued that these bills could obfuscate the roles of state and local authorities and delay project timelines. Nicole Riley of the Data Center Coalition expressed concerns about increased regulatory uncertainty, noting the industry’s significant investments in Virginia.
Dominion Energy, Virginia’s largest utility, pointed out that increased requests from high-power users, like data centers, have created challenges in meeting demand. The proposed legislation would have introduced a structured review process to address these issues but was criticized for infringing upon local decision-making.
Although tabled, the bills prompted a subcommittee to send a letter to the SCC to explore how such a regulatory framework might be implemented in the future. Both Thomas and Srinivasan emphasize the need for a balanced growth strategy to manage the industry’s impact on Virginia’s electrical grid without hindering economic contributions.
