Virginia is a US state whose Northern Virginia data-centre cluster makes it a focal point for decisions on large-load electricity, water, land use and local consent. Loudoun County had 233 data centres by 16 September 2026, making county planning decisions important to the state's wider development model.

State and county institutions shape that model together. Virginia enacted a consumption tax on data-centre power on 22 June 2026 that covers both grid supply and self-generated electricity, while counties decide rezoning applications. The state matters because major campuses need fiscal certainty as well as local permission. This dossier therefore tracks statewide policy alongside decisions in Loudoun, Fairfax and Prince William, without treating any single campus as Virginia's whole data-centre economy.

Key Issues

Data centre planning

Virginia faces a planning pause

On 16 September, Loudoun County's Board of Supervisors voted 7-1 to draft a 12-month pause on new data-centre rezonings. The proposal is not law: supervisors must vote again in October, while existing approvals covering 35.7m square feet remain unaffected.

For Virginia, the move adds pressure in the county that hosts 233 data centres. It follows the state's 22 June consumption tax on both grid power and self-generated data-centre electricity, capped at $600m a year and due to expire in July 2028. Virginia's development model now depends on both state fiscal rules and county consent.

Common Questions

Virginia faces a planning pause

What is Virginia's new data centre power consumption tax?

Virginia's two-year budget, passed on 22 June 2026, imposes a $0.011 per kilowatt-hour consumption tax on data-centre power, covering both utility-supplied and self-generated behind-the-meter electricity. It is capped at $600 million per year and sunsets on 1 July 2028.Source: Lowdown

What happened with the Berry Hill data centre approval in Virginia?

Danville and Pittsylvania County officials approved an AI data centre at the Berry Hill megasite on 26 May 2026, but made it contingent on Virginia resolving its state tax exemption standoff — the first time local approval has been formally conditional on state fiscal policy.Source: Lowdown data-centres update 4

Why did Compass Datacenters cancel its Virginia sites in May 2026?

Compass halted its search for two sites in Greensville County and Emporia because of uncertainty over Virginia's data-centre tax exemption. Senate Finance chair Louise Lucas wants to end the abatement by end-2026; The House wants to extend it to 2035. The budget impasse made investment planning impossible.Source: Lowdown data-centres update 4

Why is Loudoun County the centre of US data centre controversy?

Loudoun County hosts the world's largest data centre cluster and rejected its own moratorium in March 2025; it loses more than $1 billion per year in tax abatements according to Good Jobs First.Source: Good Jobs First / Loudoun County planning records

Why does Loudoun County keep approving data centres despite tax concerns?

Loudoun rejected its own moratorium in March 2025 and operates a mandatory special exception process for data centre approvals. The Planning Commission voted 7-1-1 on 12 February 2026 to recommend a further 268,700 sq ft rezoning. A Phase 2 standards review is scheduled for December 2026.Source: Lowdown

When does Virginia's data centre consumption tax expire?

Virginia's $0.011 per kilowatt-hour data-centre consumption tax sunsets on 1 July 2028 under the two-year budget passed on 22 June 2026.Source: Lowdown

Does Virginia's data centre tax apply to behind-the-meter generation?

Yes. Virginia's June 2026 consumption tax explicitly covers self-generated (behind-the-meter) power as well as utility-supplied electricity, making it the first US state levy to reach past the meter to tax on-site generation.Source: Lowdown

How much money does Virginia lose from data-centre tax abatements?

Good Jobs First calculates Virginia loses more than $1 billion per year in data-centre sales-and-use tax abatements — a figure at the centre of the 2026 state budget standoff.Source: Good Jobs First

How much does Virginia lose in data centre tax breaks each year?

Good Jobs First calculated that Virginia loses more than $1 billion per year in data centre sales-and-use tax abatements — the same order as Georgia and Texas. Loudoun County is the primary location and continues approving projects despite having rejected its own moratorium.Source: Lowdown / Good Jobs First

Did Virginia's redistricting referendum change its congressional map?

No. the Supreme Court of Virginia struck down the Mid-decade redistricting amendment 4-3 on 8 May 2026, so Virginia's 11-seat delegation, split 7 Democratic to 4 Republican, runs under its existing lines in the 2026 midterms.Source: Lowdown

Is Virginia a swing state in 2026?

Virginia trends Democratic but has competitive House seats. Its 11-seat delegation splits 7-4 Democratic, and the Supreme Court of Virginia struck down the Mid-decade redistricting amendment on 8 May 2026, so the 2026 midterms run on the existing lines.Source: Cook Political Report

How many congressional seats does Virginia have and who holds them?

Virginia holds 11 congressional seats, currently split 7 Democratic and 4 Republican.Source: Virginia SBE

Source Material

Virginia — Wikipedia Virginia Department of Elections