A three-year, state-wide moratorium on data center development could be introduced in Virginia, the industry's largest market. Russet Perry, the Democratic senator for Loudoun County, has proposed the pause in Senate Bill 843.

Moratorium bill targets industry's largest market

If enacted, the legislation would stop state agencies from approving data center planning applications for three years from July 1, 2027. According to the proposal, the moratorium is designed to give Virginia's lawmakers time to draw up a set of rules for data center developments.

Perry made the comments in remarks reported by the Loudoun Times-Mirror.

Senator cites unchecked growth and rising electric bills

Perry framed the bill as a response to rapid industry expansion that has outpaced the state's ability to manage it.

"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.

She added: "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."

Follows earlier groundwater review call

The moratorium proposal is not Perry's first intervention on the issue. 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.

Local backlash across Northern Virginia

Northern Virginia, which includes Loudoun County, has been at the heart of the data center industry for years.

But like many parts of the United States, the region is experiencing a backlash against new AI data center projects.

That backlash is visible at the local level. 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.

The trend is not confined to Virginia. Statewide moratoriums have been introduced in New York, Texas, and Oregon, and other states are proposing similar measures.

Governor stops short of moratorium but imposes accountability framework

Virginia's governor, Abigail Spanberger, has stopped short of backing a statewide moratorium.

However, last month she introduced a Data Center Accountability Framework, which bans non-disclosure agreements for new projects and calls for the development of regulations around the noise created by data centers.

The combination of Perry's Senate Bill 843, the governor's framework, and local measures in Loudoun and Prince William counties signals mounting scrutiny of data center development across the state, from grid and electricity demands to groundwater supply, transmission lines, and noise.

If Perry's bill advances, Virginia's senators could vote on whether to impose the three-year pause, a decision that would carry significant weight given the state's position as the largest market in the data center industry.