Data Centers Facing Major Regulatory Overhauls Across Virginia and Maryland

2 min

The past week has seen dramatic shifts in data center policy at the state and local level in Virginia and Maryland. Landowners, developers, and users should carefully track these evolving processes to ensure that impacts on current and future projects are understood and mitigated. Venable will continue tracking this information to ensure that our clients are protected.

Regional Updates

Loudoun County, VA - On September 8, the Loudoun County attorney issued an opinion that data center development could legally be delayed by up to 12 months from the time of submittal. While this is not technically a moratorium, it will have the same impact of preventing data center development for a period of 12 months.

Statewide Virginia - On September 19, Governor Abigail Spanberger signed an Executive Order related to data centers. This will involve immediate updates related to transparency, environmental impacts, and address energy costs and reliability. This will likely be followed by legislative changes by the 2027 Virginia General Assembly.

Prince William County, VA - On September 22, the Prince William County Board of Supervisors voted to amend the Data Center Overlay District. This vote largely eliminates the ability to develop data centers by right. Certain projects will be grandfathered if they are submitted within 90 days. It is anticipated that additional performance standards for data centers will be proposed later this year.

Statewide Maryland - On September 23, Governor Wes Moore signed an Executive Order related to data centers. This will involve a new, statewide land use process for data centers with a Task Force review at the state level. Other changes will focus on energy costs, environmental impacts, economic impacts, and community input. This will likely be followed by legislative changes by the 2027 Maryland General Assembly.

Frederick County, MD - On September 23, County Executive Jessica Fitzwater announced that she would seek to reduce the data center opportunity area that was recently approved. This would open back up a lengthy and contentious review process that took place recently.

Subscribe to Venable's Labor and Employment Newsletter.