Virginia congressman shares proposal calling for regulation of data centers
New proposal calls for regulations for data centers
A new proposal is calling for regulations for data centers.
LOUDOUN COUNTY, Va. - A Northern Virginia congressman is pushing a new national plan that would change how data centers are built and regulated.
What we know:
In parts of Northern Virginia, data centers have been rapidly expanding, particularly in Ashburn, an industrial area that is home to multiple massive facilities.
That growth has also prompted concerns for neighbors.
Congressman Suhas Subramanyam believes communities need more say in where these massive data centers are being built. He also says there need to be more regulations on who pays for the infrastructure needed to power the facilities, rather than leaving the cost to other ratepayers.
His proposal would require large facilities to cover the costs of related power grid updates and the costs of strengthening security around the facilities and nearby infrastructure. His plan would look at keeping data centers and new power lines away from homes, schools and historic parks.
"Loudoun County is not poor, it's one of the highest median incomes," Rep. Subramanyam said. "But we are at a breaking point where we don't even have the power to power all these data centers. We are putting power lines in schools. Loudoun was one of the fastest growing communities, and now we are seeing residents paying the price in so many ways. So enough is enough we have to make sure that we do this much smarter, or we need to not do it at all."
The Data Center Coalition, which has supported projects in Loudoun County, pointed to the industry's economic impact. The group says data centers have become an economic engine for the county.
County documents show that data centers are expected to bring in about $1.2 billion in tax revenue in 2026, nearly 40% of the county's budget.
"Loudoun is a great example where the tax revenue has been able to really support public education, support law enforcement, but its also been able to bring down taxes for local citizens. Real estate tax rate has dropped," said Nicole Riley with the Data Center Coalition.
Congressman Subramanyam said he's concerned that local and state leaders are becoming too reliant on the tax revenue coming from data centers.
The proposal comes as Loudoun County leaders consider a pause on new data center development and consider changing grandfathering policies.
The Source: Information in this article is from the office of Rep. Suhas Subramanyam.