A three-year data center moratorium could be introduced in Virginia, the industry’s largest market.

Russet Perry, Democratic senator for Loudoun County, has proposed the moratorium in Senate Bill 843. If enacted, it would stop state agencies from approving data center planning applications for three years from July 1, 2027.

Virginia Capitol
Virginia's senators could vote on a data center moratorium – Getty Images

In comments reported by the Loudoun Times-Mirror, Perry said the moratorium was designed to give Virginia’s lawmakers time to draw up a set of rules for data center developments.

“This billion-dollar industry has grown unchecked and without guardrails for years while families face rising electric bills, massive transmission lines threaten our homes, schools, churches, and farms, and while we don’t have anywhere near the infrastructure needed to protect our grid and meet the staggering electricity demands of these massive facilities,” Perry said.

“We cannot keep rubber-stamping new data centers when we can’t even manage the ones already built. It’s past time we put real protections in place for our communities, our natural resources, and ratepayers.”

In August, Perry and Republican senator Richard Stuart called for a review into the strain Virginia's data centers were putting on the state's groundwater supply.

Northern Virginia, which includes Loudoun County, has been at the heart of the data center industry for years. But like many parts of the US, the region is experiencing a backlash against new AI data center projects.

In Loudoun County itself, a 12-month data center moratorium is being introduced, while neighboring Prince William County is bringing in tighter planning controls for new projects.

Statewide moratoriums have been introduced in New York, Texas, and Oregon, and other states are proposing similar measures.

Virginia’s governor, Abigail Spanberger, has stopped short of backing a moratorium, but did introduce a Data Center Accountability Framework last month. This bans non-disclosure agreements for new projects and calls for the development of regulations around the noise created by data centers.

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