Loudoun County leaders table debate over data center approvals after warning about potential litigation cost

LEESBURG, Va. - A major debate took place in Loudoun County Tuesday night over how data center developments are approved, though no final action was taken.

What we know:

The discussion centered on whether the Loudoun Board of Supervisors should change existing grandfathering rules for data center projects.

Last month, supervisors requested the county attorney review the potential impact of ending grandfathering protections for certain developments. Under current county policies, certain projects can be approved directly by county staff, without requiring a vote from the board, if they meet established county requirements. Ending that policy would force more data center proposals to undergo the full legislative approval process.

On Tuesday night, the county attorney warned supervisors that removing those grandfathering protections would be risky, saying it could cost the county $60 million in litigation.

Following the attorney's warning, supervisors initially shifted away from the proposal to end grandfathering. Instead, a motion was introduced to potentially hire an outside auditor to evaluate data center projects on a case-by-case basis.

The proposal for an outside auditor drew mixed reactions from the board. Supporters argued that an outside auditor is necessary to foster transparency between county residents and developers. Opponents maintain that hiring an outside auditor is disrespectful to the existing staff responsible for reviewing projects, including the Planning Commission and the county attorney.

Ultimately, nothing was approved or denied. The board chairwoman decided to table the entire item, including the matter of grandfathering protections, for a later date.