Virginia Democratic Senator Proposes Statewide 3-Year Data Center Moratorium
The bill would block local approvals and state permits for new data centers and related energy infrastructure from July 2027.
WASHINGTON, Oct. 19, 2026 - A Virginia senator has proposed a three-year statewide moratorium on new data center approvals.
Virginia Sen. Russet Perry, D-Loudoun, has introduced legislation that would impose a three-year statewide moratorium on new data center approvals, escalating a debate over the industry’s rapid growth, energy demands and impact on communities.
Senate Bill 843 would prohibit localities from approving data center applications beginning July 1, 2027. State agencies, including the State Corporation Commission, would also be barred from issuing permits or approvals for data center development or the energy infrastructure needed to serve it. Perry says the pause would give Virginia time to develop a comprehensive statewide plan for an industry she argues has expanded without adequate safeguards.
“Rubber-stamping new data centers” is no longer sustainable, Perry said in a statement, citing rising electric bills, large transmission projects and insufficient infrastructure to meet demand.
The bill comes ahead of a “March for a Moratorium” organized by the Piedmont Environmental Council at the Loudoun County courthouse in Leesburg on Oct. 17. The event is part of a broader campaign coordinated by the CCAN Action Fund, with rallies planned across Virginia. PEC land-use director Julie Bolthouse said data center growth is affecting utility bills, electricity demand and air quality, and linked new transmission projects to regional expansion of the industry.
Supporters of the moratorium argue it would create space for more deliberate planning, particularly in Loudoun County, where residents have opposed transmission lines and new facilities. Del. John McAuliff, D-Loudoun, said the state could either authorize county-level moratoriums or temporarily remove local approval authority for data centers.
Industry groups strongly oppose the measure. The Data Center Coalition said the bill would deny other Virginia communities the economic benefits Loudoun has received, pointing to jobs, lower taxes and $1.3 billion in annual data center tax revenue. Coalition director Nicole Riley warned that a moratorium could push investment and tax revenue to neighboring states.
The Loudoun County Chamber of Commerce also criticized the proposal, with CEO Tony Howard saying lawmakers should prioritize job creation rather than limit the industry generating jobs at scale.
The debate is likely to intensify before the 2027 legislative session begins on Jan. 13, as Gov. Abigail Spanberger, D, has proposed measures to rein in the industry but has not endorsed a full moratorium.
