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HB 496

Certain data from water users; water use consumption for domestic, etc., purposes, data centers.

2026 Regular Session Introduced by Nadarius Clark and 8 co-sponsors

Requires Virginia data center developers to assess environmental impacts and disclose water usage before construction to increase transparency and protect local water resources.

Approved by Governor-Chapter 623 (effective 7/1/2026)
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Bill Summary · HB 496

Legislative bill overview

HB 496 requires data center developers in Virginia to conduct comprehensive site assessments and publicly disclose water usage before construction. The bill establishes transparency requirements and environmental review standards for siting new data center facilities across the state.

Why is this important

Data centers consume massive amounts of water for cooling operations, which can strain local water supplies—a critical concern as Virginia experiences growing data center development driven by AI and cloud computing demand. This bill addresses the tension between economic development and environmental sustainability by ensuring communities have information about water impacts before projects are approved.

Potential points of contention

  • Industry burden vs. public interest: Data center operators may argue disclosure and assessment requirements increase costs and delay projects, while environmental advocates say transparency is essential for protecting water resources
  • Local control questions: The bill may create conflicts between state-level requirements and local zoning authority, raising concerns about which level of government has final siting authority
  • Water availability standards: Unclear what triggers a "no-go" on a project if water is scarce—disclosure alone doesn't prevent siting in water-stressed regions, so environmental groups may view it as insufficient protection

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

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