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HB 323

Data centers; Department of Energy shall lead efforts to accelerate use of waste heat, report.

2026 Regular Session Introduced by Nicole Cole and 2 co-sponsors

Virginia directs Department of Energy to coordinate waste heat recovery from data centers and report on accelerating beneficial use of this thermal energy resource.

Approved by Governor-Chapter 591 (effective 7/1/2026)
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Bill Summary · HB 323

Legislative bill overview

HB 323 directs Virginia's Department of Energy to lead coordinated efforts to accelerate the beneficial use of waste heat generated by data centers throughout the state. The bill requires the department to develop strategies and submit a report on progress, likely including recommendations for policy, regulatory, or infrastructure changes to capture and repurpose this thermal energy.

Why is this important

Data centers consume substantial electricity and generate significant waste heat, which currently represents an economic and environmental loss. Capturing this waste heat for district heating, industrial processes, or other applications could reduce overall energy consumption, lower operational costs for data centers, and support Virginia's climate and economic goals while potentially attracting or retaining data center operations in the state.

Potential points of contention

  • Implementation costs and funding: The bill mandates departmental action but includes a fiscal impact statement, raising questions about whether adequate resources are allocated or if this creates unfunded obligations
  • Technical feasibility and scalability: Waste heat recovery requires proximity to end users and infrastructure investment; not all data center locations may have viable applications, potentially limiting real-world impact
  • Regulatory uncertainty: The report's recommendations could lead to new regulations or requirements on data centers that operators may view as burdensome or costly, creating industry opposition

Compiled from official sources — confirm details with the bill’s official record.

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