Virginia’s Data Center Boom Is Coming for Rural Communities—Are We Ready?

As Virginia lawmakers begin debating new rules to manage the state’s booming data center industry, many residents in Warren County are pushing back against the idea that these massive, power-hungry facilities should expand into their community.

More than 500 data centers already operate across Virginia, most heavily concentrated in Northern Virginia’s “Data Center Alley.” As available land in urban and suburban areas becomes scarcer, developers are increasingly eyeing rural areas—including Warren County—for future projects.

But here, the reception has been far from welcoming.

“Not in Our Backyard”: Residents Voice Concerns

Residents, community groups, and some local officials have raised growing concerns about the potential impacts of data centers on power infrastructure, local roads, noise levels, water use, and property values. Some fear the facilities will strain public services while offering few benefits to the average resident.

“People move here for peace and natural beauty—not to live next to an industrial site that runs 24/7,” said one local resident who attended a recent planning commission meeting. “We’re not against economic development, but this isn’t the kind of growth we want.”

In recent months, local forums and social media pages have been filled with questions about proposed sites, concerns over transparency, and calls for stricter zoning laws to limit or prohibit data center construction in certain parts of the county.

Energy Demand and the Statewide Conversation

At the heart of the concern is the immense power demand these facilities bring. A single large data center can use as much electricity as tens of thousands of homes. In Northern Virginia, Dominion Energy has already warned that power supplies are being stretched thin in some regions, and that serving new data centers may require natural gas plants, major grid upgrades, or higher utility rates.

These concerns are exactly what a new bill in the General Assembly—House Bill 155, introduced by Delegate Josh Thomas (D-Prince William)—aims to address.

The bill would require State Corporation Commission (SCC) approval before any new high-load facility—defined as one using more than 25 megawatts of electricity—can connect to the grid. It would also require a review of potential impacts on ratepayers, grid reliability, public health, and the environment.

Critically, HB155 would ensure data centers don’t create what’s known as a “cross-subsidy”—where regular utility customers, including households in places like Warren County, end up footing the bill for the infrastructure upgrades needed to support corporate expansion elsewhere.

While the bill is still in the early stages of consideration, it reflects a growing push in Richmond to balance economic development with environmental and community concerns.

Tax Breaks and Local Accountability

Virginia has also faced scrutiny for its generous tax incentives for data centers, which waive sales and use taxes on equipment and construction in exchange for job creation and investment. The program is estimated to forgo nearly $1 billion in tax revenue each year.

While most lawmakers are reluctant to repeal the incentive, some are now calling for tighter rules, such as requiring developers to use cleaner energy, meet efficiency standards, or show local support before qualifying for the break.

In Warren County, the conversation is less about tax incentives and more about transparency and local control.

Residents have asked for more information on proposed sites, more opportunities to participate in planning discussions, and greater authority for local officials to say “no” when a project doesn’t align with the county’s vision for the future.

Some have also raised concerns about water usage in cooling systems, constant generator noise, and the visual impact of large, windowless buildings in scenic rural areas.

What’s Next for Warren County?

As state lawmakers debate HB155 and other legislation that could shape the data center industry for years to come, many in Warren County are urging their own local leaders to take action now—before developers come knocking.

That could mean revisiting zoning codes, increasing public notification requirements, or creating new overlay districts that limit where data centers can be built.

Several localities in Virginia, including Loudoun and Prince William counties, are already revising their data center policies in response to community concerns. Warren County residents say they don’t want to be left behind or caught off guard.

“This is a defining moment,” one resident told the Royal Examiner. “We have the chance to protect what makes our community special—before it’s too late.”