Virginia Senator Proposed Statewide Data Center Moratorium
The draft bill would freeze new data center approvals in Virginia for three years starting in mid-2027.
Updated on Oct. 14, 2026 in Data Centers
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Senator Russet Perry has released draft legislation, SB843, that would implement a three-year statewide moratorium on new data center developments in Virginia. If passed, the measure would prohibit all local and state approvals for data center projects beginning in July 2027.
Why it matters
The proposal responds to concerns regarding the rapid, unchecked expansion of the data center industry and its impact on transmission infrastructure and electricity costs for residents. The bill seeks to halt new construction through mid-2030 to evaluate these growing demands.
The proposed bill, SB843, mandates a 3-year pause on new data center site approvals. This timeline currently lacks a legislative baseline for comparing infrastructure load reductions against the projected state growth.
The players
Russet Perry
A Virginia state senator who sponsored SB843 to regulate the expansion of the regional data center industry.
The details
The bill would restrict local governments from granting rezoning requests, special exceptions, or site plan approvals for data center projects. At the state level, it would bar agencies from issuing any licenses, permits, or certificates necessary for data center operation or related electric distribution. These restrictions are designed to comprehensively halt the physical and regulatory expansion of the industry throughout the state.
Timeline
October 13, 2026: Senator Perry released the draft legislation.
July 1, 2027: The proposed moratorium effective start date.
July 1, 2030: The proposed moratorium sunset date.
The Tech Race
This proposal marks a departure from Virginia's current policy of accelerated data center infrastructure permitting. It shifts the state's trajectory from unchecked capacity expansion toward a period of regulatory re-evaluation.
The proposal aims to address rising household electric bills and potential strain on transmission lines caused by industry growth. If enacted, residents should watch for future committee hearings in the legislature to determine the final scope of the moratorium.
The takeaway
The bill highlights an increasing friction between regional infrastructure capacity and the rapid build-out of high-load technology facilities. Stakeholders should track the formal introduction of SB843 in the upcoming legislative session to see if the proposed three-year timeline remains unchanged.
Further reading
Learn more about the infrastructure and regulatory environment at Data Centers.
Source note: This article includes information reported by Potomac Local News.
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Should your state enact a three-year moratorium on new data center development?
