The Safeguards Virginia Wants to Attach to Data Centers

The headline fight in Virginia is over a tax break, but a quieter set of bills may matter more to the families who live next to these facilities. In the 2026 session, lawmakers advanced measures that would make data centers report their water use, meet air and backup generator standards, and follow new siting rules. Here is what was on the table and why each piece matters to neighbors.

Key takeaways

Siting bills HB153 and SB94 were in conference as of March 2026, meaning the two chambers were working out a final version.
Water usage reporting bills HB496 and SB553 were also in conference.
An air permitting and backup generation bill, HB507, had passed the Senate.
A broader statewide data center policy bill, HB591, was continued to 2027, meaning it was held over rather than passed.
The House budget proposal would also require cleaner Tier 4 backup generators by July 1, 2031 and removal of carbon-emitting co-located generation by July 1, 2027.
The 2026 regular session ended without final action, and a special session was set for April 23, 2026.

Four issues lawmakers are trying to address

Siting (HB153, SB94). Siting rules govern where a data center can go and what it must do to fit next to existing uses, including buffers, setbacks, and review of nearby homes and schools. These bills were in conference as of March 2026.

Water reporting (HB496, SB553). Large data centers can consume very large volumes of water for cooling. Reporting bills would require operators to disclose how much they use. Disclosure matters because you cannot measure harm to wells and groundwater without knowing how much water a facility is drawing.

Air and backup generators (HB507). Data centers rely on backup generators, which are often diesel and which produce air pollution and noise when they run and are tested. HB507, which had passed the Senate, addresses air permitting and backup generation. The House budget proposal would separately require the cleaner Tier 4 generator standard by July 1, 2031.

Statewide policy (HB591). This broader bill would have set Commonwealth-wide data center policy. It was continued to 2027, so it remains a live issue for the next session rather than a settled one.

Why these matter to residents

Each of these bills maps directly onto a harm that neighbors report. Water reporting connects to wells running low and groundwater being drawn down. Air and generator standards connect to diesel fumes and the noise of generators cycling on. Siting rules connect to how close an industrial facility can sit to a home, a school, or a well. When these standards are weak or missing, the burden lands on the people who were already there.

What this means for you

Even where a bill has not passed, the standard it describes can help you understand what responsible operation looks like and where a facility near you may be falling short. If you are dealing with generator noise, diesel odor, or water changes, document them now with dates, short recordings, and photos. That evidence is what turns a complaint into a potential claim, and it is also what makes public comment at a hearing land.

Sources

Virginia HB153 and SB94 (siting); HB496 and SB553 (water usage reporting); HB507 (air permitting and backup generation); HB591 (Commonwealth data center policy); and the HB30 House budget proposal, 2026 session.
Reporting by DLA Piper, "Virginia General Assembly continues debate over sales and use tax exemption for data centers" (March 16, 2026).

Editorial note: bill status changes quickly and several of these were still in conference or continued at the time of reporting. Confirm the current status and final text of each bill before publishing.