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HB 338

Siting of data centers; locality may perform site assessment before approval.

2025 Regular Session Introduced by Dan Helmer and 5 co-sponsors

Virginia bill empowers localities to assess environmental and infrastructure impacts before approving data center projects, shifting decision-making to earlier planning stages.

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Bill Summary · HB 338

Legislative bill overview

HB 338 allows local governments in Virginia to conduct environmental and infrastructure site assessments before approving data center construction projects. The bill gives localities the authority to evaluate potential impacts before granting permits, rather than being limited to reviewing applications after developers have already selected sites.

Why is this important

Data centers consume significant electricity and water resources, generate heat, and require substantial infrastructure investments. This bill addresses a practical governance gap by enabling communities to participate in early planning stages, potentially influencing site selection to minimize environmental strain, protect residential areas, or align development with existing infrastructure capacity.

Potential points of contention

  • Economic development vs. local control: Tech companies and industry groups may argue that pre-approval assessment requirements create delays and uncertainty that discourage investment in Virginia, while local governments see it as necessary oversight.
  • Cost and burden allocation: Unclear whether localities or developers bear assessment costs; expensive studies could either burden local budgets or increase development costs passed to consumers.
  • Vague assessment standards: The bill's language about "site assessment" lacks specificity on what constitutes adequate evaluation, potentially creating inconsistent application across jurisdictions and legal vulnerability.

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

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