Several Virginia and Maryland localities voted this summer to pause or limit new data center applications while they update local zoning rules. The legal tools available to do so, however, differ significantly between the two states.
Recent Developments in Virginia
On July 22, the Loudoun County Board of Supervisors voted 6-1, on a motion from Supervisor Juli Briskman (D-Algonkian), to direct staff to study a pause on processing all data center applications, including substations, until the County finishes updating its data center zoning standards next spring.
County Attorney Leo Rogers told the Board that moratoria are not legal in Virginia except in narrow circumstances, citing Virginia Beach's delay of building permits during a water crisis as an example of the kind of scenario that might support one. Rogers also told the Board that the Supreme Court of Virginia has determined that moratoria are generally not permitted in the Commonwealth. He further cautioned that any eventual pause likely could not reach data center applications approved administratively rather than by the Board itself, meaning the scope of whatever staff proposes on September 15 may be narrower than a full freeze.
Chesapeake has taken a similar approach, pairing an application pause with a Comprehensive Plan amendment process. Frederick County and Prince William County have instead directed staff to prepare zoning ordinance amendments that would remove data centers as a by-right use. Prince William's proposed amendment would eliminate the Data Center Opportunity Zone Overlay District's by-right framework. Front Royal/Warren County adopted a moratorium in June.
Some Virginia localities have pursued zoning ordinance amendments rather than a formal moratorium, while others, including Front Royal, have proceeded with an outright pause.
Developments in Maryland
Maryland counties operate under home-rule authority granted by state law, a different structure from Virginia's Dillon's Rule framework. Montgomery County paused new data center permit applications for six months by executive order in June, and the County Council is now advancing a bill to extend that to 18 months and cap facility size, with a vote expected July 28. Frederick and Baltimore counties have adopted similar pauses, and Prince George's County adopted a two-year moratorium in early July following a countywide task force review.
Practical Considerations for Developers and Investors
The regulatory landscape for data centers and their supporting infrastructure across the DMV is changing quickly, and the process differs by locality. Developers and investors with projects in the pipeline should track upcoming decision points closely, including Loudoun's September 15 return date and the Montgomery County Council's July 28 vote. They should also stay attentive to how each jurisdiction's zoning ordinance amendment or moratorium process develops.
If you have questions about data center moratoria or zoning regulations in Virginia or Maryland, contact the authors or anyone on Venable's Land Use and Zoning Team.