RICHMOND, Va. – A bill that could affect how data centers and other large projects are approved in Virginia is advancing at the state Capitol.
Virginia lawmakers advanced SB 334 out of a House committee on a 14-to-4 vote this week. The measure would require local governments to hold public hearings before selling or granting certain interests in public land — including leases and easements that can be used in large developments like data centers. Supporters say it would boost transparency for communities facing rapid data center growth, while opponents argue it could slow economic projects.
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The bill has been referred to the Virginia House Appropriations Committee for further review because of potential financial implications. If it clears appropriations, it will advance to the full House of Delegates for a vote.
Lawmakers are also addressing data center policy through competing budget proposals. The Virginia Senate’s budget plan would allow the state’s retail sales and use tax exemption for data center equipment to expire; proponents say ending the exemption — which the industry has used for years — could generate significant revenue.
The House budget, by contrast, would retain the data center tax exemption but add environmental and energy performance conditions for facilities to qualify for the benefit.
In addition, HB 284 would direct the State Corporation Commission of Virginia to establish demand flexibility programs for high-energy customers, including data centers, designed to shift electricity usage away from peak grid demand. The bill was reported from the House Commerce and Labor Committee with a substitute and is progressing through the legislature.
Negotiations over the budget and separate legislation will continue over the coming weeks, and any approved measures will still require final votes by both chambers and, where applicable, the governor’s signature before becoming law.