Virginia data centers face stricter water regulations

Virginia, the world’s largest hub for data centers, released a long‑delayed groundwater study that warns of declining aquifer levels due to population growth and industrial water withdrawals. The report recommends that regulators gain greater authority to deny water‑withdrawal permits, require data centers to explore alternative water sources, and enforce stricter limits on usage.

In response, state lawmakers are advancing Senate Bill 521, which would mandate new data‑center facilities to collect and reuse rainwater for cooling. The bill, introduced in 2026 and set for further debate in 2027, reflects a growing push from environmental groups and policymakers to curb the sector’s water consumption amid a regional drought that is the worst since 1941.