Impacts of Loudoun’s Data Center Industry
Loudoun is widely considered the “data center capital of the world”, hosting over 30 million currently operational data center square feet with another 5 million under development. While the County coffers have been enriched by the property taxes from data center construction, only recently have we begun to realize the externalized cost of our heavy investment in this industry.
Power
- Data center facilities are placing a significant strain on the local power grid.
- Inevitable increased electricity costs will be passed on to the rate-payers.
- New high-voltage transmission lines through our towns and neighborhoods are required to bring the power to these data center facilities.
Natural Resources
- Fossil-fuel backup generator operation creates significant air pollution.
- Cumulative water and heat pollution from multiple data centers significantly impact our freshwater resources and our wildlife habitat.
Quality of Life
- Data center developers are willing to pay high prices for land, which has made it difficult for other businesses to locate in the area.
- Data centers make up half of Loudoun’s tax base, so changes in the data center market can significantly impact the county’s finances.
- Noise pollution is a problem when siting centers near residential areas or sensitive wildlife.
Greening Data Centers
In recognition of these challenges, the Virginia Data Center Reform Coalition formed in 2023 to seek Virginia state regulatory oversight of this industry whose resource demands and local planning challenges were exceeding the available local and regional resources. Loudoun Climate Project is an active member of this Coalition.
Model Green Data Centers
The good news is there is plenty of opportunity for data center proposals to minimize their impact on the resources they consume. The available technologies and tools cost more up front, so incentives and regulation are necessary. Yes, model green data center projects are more expensive to build and power, because they account for the externalized cost of their effect on the local and global community.
Best Practices
 POWER EFFICIENCYuse improved software and hardware tools (DCIM) to optimize computer performance and efficiency |  REDUCED GREENHOUSE GASSESdecarbonize backup power in cooperation with clean, renewable energy from incentivized power utilities |
 COOLING EFFICIENCYcooling the computers comprises a huge percentage of the massive power draw from data centers |  GREEN CONSTRUCTIONLEED or BREAM-UK standards to incorporate best practices, reduced waste |
Next Steps – State
The JLARC Data Center study, commissioned by the State of Virginia in the 2024 legislative session to review the impacts of the data center industry, was published on December 2024. It paints a picture of an industry that isn’t sustainable, is undermining Virginia’s climate goals, and has gotten out of control. We lobbied our elected state and local representatives to enact legislation in 2025 that would incentivize this industry to take advantage of the latest technology to reduce their environmental impact.
2025 VA Legislation
The Data Center Reform Coalition organized our strategy into Four Pillars of Data Center Reform for the 2025 General Assembly.
- Enhanced transparency –
- Local Disclosure: baseline set of information on energy use, water consumption, and emissions that localities must require of proposed data center developments.
- State Reporting: disclosure of energy use, water consumption, and emissions of operating data centers.
- State oversight – Establish a state review and permitting process for large data center proposals in addition to the local approval process to evaluate regional impacts that are affecting neighboring jurisdictions and state policies.
- Ratepayer Protection – Prevent residents and businesses from subsidizing the billions of dollars in costs associated with the data center industry’s infrastructure energy needs.
- Incentivizing sustainability – Connect data centers’ tax benefits to clean energy and efficiency standards to reduce costs and pollution.
2025 Legislation Report
There were dozens of bills put forward to incentivize data centers to lean into clean energy and energy efficiency and protect ratepayers from ballooning energy costs associated with Data Centers’ astronomical energy needs!
LCP was part of the heavy grassroots pressure to pass these bills. Unfortunately, representatives from other jurisdictions outside of Northern Virginia, eager to attract data center dollars, were swayed by the Data Center industry to block these progressive measures. Although a handful of bills made it past crossover, the state leadership passed 0 data center bills.
On the bright side, our advocacy helped to defeat proposed budget amendments that would have extended the data center tax credit until 2050 with no strings attached. Also, Senator Roem’s Demand Response bill SB 1047 did pass on for the governor’s signature. SB 1047 instructs the state to update the state’s Demand Response program which pays Commonwealth of Virginia buildings and facilities to conserve or shift electricity use in response to grid signals.
Next Steps – Loudoun
Loudoun County Data Center Legislation
Background
In July 2024, the Loudoun County Board of Supervisors (BOS) initiated a set of Comprehensive Plan Amendments and associated ordinances that would give our County more control of data center applications by making data centers a conditional use, rather than by-right. In spite of a recommendation for denial by the Planning Commission, the BOS have continued with this trajectory.
February 2025 was the first public hearing regarding BOS’s process to create ordinance and zoning amendments to limit where data centers can be built in Loudoun. That night, the Board voted 6-2 to advance changes to the county’s comprehensive plan and zoning ordinance which would require all future data centers to meet certain conditions to be built. 🎉
On March 18 2025, the Board plans a major vote on its proposed Phase One amendments to the comprehensive plan and zoning ordinance to better manage data center development in the county. We support these changes, but are asking the BOS to limit one aspect: the grandfathering clause.
An exception: the grandfathering clause
The Data Center lobby and the Chamber of Commerce asked for a grandfathering clause which would exempt the roughly 40 data center applications that were filed before Feb. 12 2025 from the having these new ordinances applied to them.
Exempting 40 data centers from the proposed changes that require Board review and public input would be a massive detriment to the county’s ability to get data center growth under control. Not only would the 40 data centers have local land use impacts, they would demand about 4 gigawatts of additional power, which will likely require more transmission lines and substations to be built (further impacting communities and natural resources).
We urge the Board of Supervisors to adopt its originally planned changes without exceptions in order to fulfill its own goals to better manage and reduce the impacts to residents’ quality of life.
More Resources
Data Centers and Energy Demand – PEC
Piedmont Environmental Council lays out the challenges we face resulting from the activities of the data center industry. PEC staff does an excellent job of organizing the advocacy towards Data Center Reform.
Data Center Development – Our Committment – VCN
The explosive growth of data centers threatens to derail state efforts to meet climate goals, improve air and water quality, advance land conservation, and protect national and state parks. Find policy papers, and tune into events and actions on this Virginia Conservation Network web page.
Virginia’s Data Center Burden – Sierra Club
Sierra Club Virginia Chapter lines up the facts and FAQ’s about the dangers of unrelenting data center growth in our region. Sign up here for issue updates and action opportunities.
Power to the People – Ivy Main’s blog
“Virginia energy policy made interesting.” Get informed or fired up with some of Ivy’s recent posts, or browse the 12 years of reporting she’s chalked up in her career as a lawyer, editor and Sierra Club activist.
Data Center Permitted Emissions Inventory (2022-2025 as of 3/20/2025) – Loudoun Climate Project
Built using public data from DEQ air pollution permits available here: https://www.deq.virginia.gov/permits/air/issued-air-permits-for-data-centers