Behind the scenes of a General Assembly session that kicked off last week in Richmond with arguments about divisive issues, an unusual bipartisan coalition emerged in support of legislation to address one of Virginia’s most urgent but least understood topics: data centers. Lawmakers from rural and suburban areas share concerns about the industry’s rapid growth in Virginia, with mammoth complexes built to house the computer servers and other equipment that make the world’s online activity possible, reports The Washington Post.
The facilities generate millions of dollars in tax revenue for local governments while consuming vast quantities of power and water, leaving utilities scrambling to keep up. Now a group of delegates and senators from both parties has proposed measures to regulate the industry, covering areas such as energy efficiency, sharing the cost of increased electrical demand and limiting bothersome noise levels.
A recent study by the General Assembly’s nonpartisan Joint Legislative Audit and Review Commission found that virtually all of the state’s growth in demand for electricity is related to data centers. Left unchecked, the facilities could triple Virginia’s electricity needs by 2040 — to more than 30,000 gigawatt-hours per month, the report found. One gigawatt can power about 8,000 homes, according to PJM, the organization that operates the electricity grid covering the Mid-Atlantic region that includes Virginia.
Lawmakers are proposing legislation to regulate the industry by focusing on energy efficiency, transparency, cost-sharing, and resource management, according to The Washington Post. Some key bills include assessing the fairness of energy costs, requiring data centers to meet energy standards for tax exemptions, and providing better impact assessments for noise and environmental concerns.
Governor Glenn Youngkin has expressed support for the data center industry, emphasizing local control over regulation. However, environmental groups and some lawmakers are pushing for more oversight to ensure sustainable growth. Despite possible opposition, the coalition is determined to continue working on the issue, which remains a balancing act between economic benefits and the needs of local communities.
By Leslie Stimson, Inside Towers Washington Bureau Chief
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