Virginia data center regulatory actions

In late July 2026, Virginia released a groundwater study highlighting declining aquifer levels linked to population growth and the water‑intensive data‑center industry. The study prompted lawmakers to advance Senate Bill 521, which would require new data‑center facilities to collect and reuse rainwater for cooling, reflecting mounting pressure from environmental groups to curb water consumption amid the state’s worst drought since 1941.

A few weeks later, in early August 2026, the Virginia State Corporation Commission ordered Dominion Energy to create a tariff that passes the cost of new high‑voltage transmission lines and substations directly to data centers and other large‑load customers. The move, supported by the governor’s administration, aims to prevent residential ratepayers from subsidising infrastructure built for commercial users and was welcomed by environmental advocates as a step toward ensuring large commercial users pay their “fair share.”