Powering Data Center Growth: How Northern Virginia Is Rewriting the Rules for Substations and Transmission Lines

3 min

The proliferation of data center development in recent years has generated significant public attention and opposition, prompting local governments to revisit land use regulations. While data centers themselves have drawn the bulk of that attention, the electrical infrastructure needed to power those facilities has also come under increasing scrutiny, resulting in stricter rules governing how and where such infrastructure can be sited.

How Transmission Lines and Substations Are Approved in Virginia

High-voltage transmission lines, which carry large amounts of electricity over long distances, and electrical substations, which step that electricity down to usable voltages for distribution to end users such as data centers, are subject to distinct approval processes in Virginia. High-voltage transmission lines are reviewed and approved at the state level by the State Corporation Commission (SCC) pursuant to Va. Code § 56-46.1. By contrast, substations are generally reviewed and approved under the zoning ordinances of the applicable locality.

As transmission needs have expanded in recent years, the approval process for new lines has become more visible and more contested. Local governments are taking a more active role in the process, adopting formal positions and updating their comprehensive plans to influence routing decisions. For example, Loudoun County has initiated a comprehensive plan amendment process to identify potential transmission corridors and guide the location of future infrastructure, positioning the County to influence routing decisions in SCC proceedings.

Organized opposition has also increased, with large numbers of residents participating in SCC proceedings. At the same time, the General Assembly has enacted legislation expanding the factors the SCC must consider, including minimizing impacts to residential areas (HB 1491) and encouraging the use of existing infrastructure corridors (SB 497).

Historically, electrical substations in Northern Virginia were treated as routine utility uses and, in certain contexts, could be approved with relatively limited discretionary review. That landscape is changing. Fairfax County adopted a zoning ordinance amendment imposing more stringent requirements for substations, including increased setbacks and enhanced screening, while also limiting where such facilities may be approved by right.

Loudoun County, which in 2025 moved data centers from by-right to special exception approval, is now advancing Phase 2 of its "Data Center Standards and Locations" initiative, which is expected to address the definition, standards, and approval framework for utility substations. In Prince William County, the Board of County Supervisors has initiated a zoning text amendment that would eliminate the Data Center Opportunity Zone Overlay District's by-right framework, potentially requiring substations associated with those uses to obtain Special Use Permit approval.

Key Regulatory Trends Impacting Data Center Infrastructure Development

Together, these changes reflect a broader trend: substations are no longer treated as routine accessory infrastructure, but instead are increasingly subject to heightened scrutiny, additional performance standards, and more discretionary land use review.

The approval framework for electrical infrastructure in Northern Virginia is in flux. As local governments and the General Assembly continue to reshape the rules governing substations and transmission facilities, developers and investors should actively monitor these developments and assess how they may impact project timelines and feasibility.

Early, proactive attention to entitlement strategy and vesting will be essential to managing the risks posed by this rapidly changing regulatory environment.

If you have questions about rules governing data center substations and transmission lines, contact the authors or anyone on Venable's Land Use and Zoning team.

 

The authors would like to thank Jay Corbalis, Land Use Policy Advisor, for his assistance with this article.