The Governor of Virginia, Glenn Youngkin, has vetoed a bipartisan bill that would have installed new oversight measures for planned data centers in the state, in a rejection of calls for increased environmental and community protections.

The proposed bill, HB 1601, was introduced by Democrat Josh Thomas. It included requirements for data center developers to conduct extensive impact assessments on water resources, farmland, historic sites, forests, and nearby neighborhoods. In addition, it proposed the introduction of noise studies for residential neighborhoods and schools located within 500 feet of planned data centers, to determine the facility's impact.

The bill's provisions would not apply to a site that has existing approval and is seeking to expand or modify the data center, as long as the expansion does not exceed an additional 100MW or more. Lastly, the bill stipulated that its provisions should not prohibit, limit, or otherwise supersede existing local zoning authority.

In a statement, Youngkin provided his rationale behind the rejection of the bill, stating: “This bill limits local discretion and creates unnecessary red tape. While well-intentioned, the legislation imposes a one-size-fits-all approach on communities that are best positioned to make their own decisions.”

Youngkin went on to note the importance the data center sector plays in the economy of the state, arguing that legislators “should not enact legislation to allow other states to pass us by nor to restrict local governments from developing data centers based on their community's specific circumstances.”

In response to Youngkin’s decision to veto, Thomas accused the Republican Governor of siding with corporate interests. “Glenn Youngkin has once again prioritized big tech profits over the well-being of Virginia residents,” Thomas said in a statement.

Thomas’ objections to the decision were echoed by other members of the Virginian Democratic caucus. “These vetoes don’t just block legislation; they block progress,” said majority leader of the Virginia House of Delegates, Charniele Herring. “Virginians need leadership that meets the moment, not partisan posturing that leaves families behind.”

The Virginian data center sector is the largest in the world, with Northern Virginia alone home to more than 150 data centers. The sector is expected to continue on a steep growth trajectory over the remainder of the decade. Dominion Energy, the state's primary utility company, has more than 40GW of data center capacity in various stages of contracting as of December 2024. This compares to 21GW in July 2024, an 88 percent increase.

Last year, Dominion connected 15 new data centers, adding nearly 1GW of capacity. The utility anticipates connecting another 15 data centers this year.