Data Center Bills Led 2026 Virginia General Assembly

Virginia is often called “the data center capitol of the world.” The rapid growth of the commonwealth’s data center industry was a key point of focus during the 2026 legislative session. Lawmakers sought to balance the sector’s benefits — including over $80 billion in state investments and thousands of jobs — against its large electricity and water needs, which are a growing concern for communities statewide and other states as well, Inside Towers reported.

Several bills were introduced to regulate the sector, with some successfully passing, reports the Virginia Mercury. One key measure, Senate Bill 253, focuses on electricity costs. It allows regulators to shift more energy-related expenses, such as power purchased through regional auctions and infrastructure like substations, onto data centers and large industrial users, rather than residents.  

Bill sponsor Senator L. Louise Lucas, D-Portsmouth, advocated repeatedly during the session for data centers to “pay their fair share,” as residents’ energy costs climb. She cited a report from Dominion Energy that said the average residential customer “could experience generation- and transmission-related costs increasing by an estimated $14 to $37 monthly … by 2040 (independent of inflation).”

Another bill, SB 553, addresses water use transparency by requiring utilities to report how much water data centers consume. This aims to give communities clearer insight into local resource use, as such data has often been kept private, according to the Virginia Mercury.

Finally, SB 94 and HB 153 introduce new siting requirements for large data centers, mandating impact assessments on agriculture, parks, and historical sites before rezoning approval. Lawmakers see it as a foundation for stronger future regulations on where data centers can be built and how they affect surrounding communities.

By Leslie Stimson, Inside Towers Washington Bureau Chief