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Data Centres: Boom and Backlash
10JUN

Lake Anna hearing, no PFAS test

4 min read
10:06UTC

Virginia regulators heard objections on Tuesday 9 June to Amazon discharging 280,000 gallons a day of cooling water into a Lake Anna tributary, with no PFAS testing in the draft permit.

IndustryDeveloping
Key takeaway

Virginia regulators heard objections to Amazon's Lake Anna discharge, with the draft permit requiring no PFAS testing.

The Virginia Department of Environmental Quality (the DEQ, the state's environmental permitting agency) held a public hearing on Tuesday 9 June on Amazon's application to discharge 280,000 gallons a day of data-centre cooling water into Sedges Creek, which feeds Lake Anna in Louisa County. The hearing drew objections and produced no permit decision. 1

Data centres pull vast volumes of water through their cooling systems and must return the warmed, treated outflow somewhere; here that somewhere is a creek running into a reservoir used by nearby residents and by Dominion Energy's North Anna nuclear plant. The application traces back to the permit Amazon filed with the DEQ for this discharge , and the 9 June session was the public's first formal chance to contest it.

The sharpest objection concerns what the draft permit leaves out. As written, it carries no requirement to test the discharge for PFAS, the per- and polyfluoroalkyl compounds known as "forever chemicals" because they do not break down in the environment. Without a testing condition attached to the permit, neither regulators nor residents would have a baseline for what enters the watershed once the campus begins releasing water.

The DEQ has not ruled. Whether it adds a PFAS monitoring condition before approving the discharge is the open question, and it will set a marker for how Virginia, the densest data-centre market in the world, polices the water side of the boom rather than the power side.

Deep Analysis

In plain English

Amazon wants to discharge 280,000 gallons of water per day into a small stream called Sedges Creek in Louisa County, Virginia. That stream feeds Lake Anna, a reservoir used by local residents and, critically, by a nuclear power station called North Anna, which uses the lake for cooling. A public hearing on this water permit was held on 9 June 2026 by Virginia's environmental regulator. The main concern at the hearing was PFAS, also known as forever chemicals: a group of man-made chemical compounds that accumulate in water, soil, and living things and do not break down naturally. They have been linked to health problems including some cancers. Amazon's proposed permit, as currently drafted, does not require any testing for PFAS in the water being discharged. Residents and environmental groups objected. Virginia DEQ ended the 9 June hearing without issuing a decision; the permit review continues. Data centres use large amounts of water to cool their servers. The water picks up chemicals from the cooling towers before being discharged, and those chemicals can include PFAS. The question of what data-centre cooling water contains, and whether it needs to be tested before being discharged, is largely unsettled in US environmental law.

Deep Analysis
Root Causes

Two structural gaps explain why Amazon's draft permit carries no PFAS testing requirement. First, Virginia's VPDES framework specifies only parameters that EPA has designated as regulated pollutants for the industrial discharge category in question.

PFAS are regulated for drinking water systems under EPA's April 2024 rule, but the rule explicitly excludes industrial discharge permits pending a separate rulemaking. Virginia DEQ cannot add PFAS conditions unilaterally without a federal hook, because Amazon would challenge the condition as ultra vires.

Hyperscale campuses use proprietary anti-corrosion and anti-fouling chemical packages in their cooling towers, and the downstream discharge composition of those chemicals in combination with ambient water chemistry in a specific reservoir like Lake Anna has not been studied. Virginia DEQ and EPA both lack published research on what hyperscale cooling discharge contains in combination with reservoir chemistry.

What could happen next?
  • Risk

    Virginia DEQ's draft permit, if issued without PFAS conditions, creates a template for other hyperscale cooling-water permits across the 13 states in the Northern Virginia data-centre corridor, where similar VPDES permits are under review.

    Short term · Assessed
  • Precedent

    The Lake Anna hearing is the first US data-centre cooling-water public hearing to explicitly raise PFAS; if Virginia adds a monitoring condition, it becomes the model for other state VPDES permits pending EPA's industrial discharge PFAS rulemaking.

    Medium term · Reported
  • Risk

    Dominion Energy's North Anna nuclear licence conditions depend on Lake Anna water quality. A cooling-water contamination event would trigger dual NRC and state regulatory review, adding a nuclear utility as a potential third-party claimant against Amazon.

    Long term · Suggested
First Reported In

Update #6 · Oregon bills data centres, not homes

WWBT NBC12· 10 Jun 2026
Read original
Causes and effects
Different Perspectives
Indian data-centre investors
Indian data-centre investors
Amazon, CPPIB and Google committed billions to Indian data-centre capacity within a single week in June, a market absorbing hyperscale investment while New Mexico and Maryland tighten permitting this fortnight. Every US moratorium makes that alternative more attractive, not less.
Gulf sovereign capital and hyperscale infrastructure investors
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GE Vernova's turbine backlog grew to 116 GW and Synergy counted a 45 GW US pipeline the same week New Mexico killed a pipeline outright. Capital keeps moving toward campuses that can secure power fastest, in the Gulf as much as Texas or Virginia.
New Mexico and Virginia regulators, and the counties opposing the build-out
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Garcia Richard killed Energy Transfer's Green Chili lateral for a second time on 15 July, and Sierra, Santa Fe and Socorro counties layered moratoria on top; Virginia's DEQ, lacking a PFAS rule, issued Amazon's Lake Anna permit regardless. Consent belongs in statute, and New Mexico's 2027 bill is the next test of whether that principle spreads.
Global hyperscale operators
Global hyperscale operators
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