Virginia’s 2026 data center policy changed across land use, sound, generator emissions, water reporting, electricity taxation, and large-load utility costs. This guide is a dated starting point—not legal advice or a substitute for the enacted text, local ordinance, permit, tariff, or commission order.
Requirements and policy changes as of August 21, 2026
| Topic | Authority | Practical effect |
|---|---|---|
| Sound-focused site assessment | HB 153 / SB 94 | Covered zoning applications must address the sound profile near residences and schools. |
| Engine-generator emissions | HB 507 | Adds requirements for certain covered data center engine-generator permits. |
| Water reporting | SB 553 | Expands aggregate reporting categories identifying data center consumption; enacted with a delayed effective date. |
| Electricity-consumption tax | 2026 budget | $0.011 per kWh during the July 1, 2026–June 30, 2028 budget period. |
| Direct-connect costs | SCC PUR-2026-00056 | Updated Rider T1 allocation and a directed filing for defined large-load direct-connect facilities. |
| Statewide noise regulations | 2026 budget language | Directs DEQ regulations to take effect no later than December 31, 2029. |
Sound now enters the site review earlier
HB 153 requires a covered site assessment to examine the project’s sound profile near residences and schools. Applicants should still check local zoning standards, submission rules, measurement requirements, and project conditions. The statewide DEQ rulemaking directed for 2029 is a separate process and does not erase current local requirements.
Generator design and permitting need an updated check
HB 507 addresses certain data center engine-generator permits and emissions requirements. A project team should verify engine classification, technology, permit applicability, emissions controls, testing and emergency-use assumptions, application date, and any Virginia DEQ guidance tied to the enacted law.
Water visibility is changing
SB 553 expands categories for aggregate water-use reporting so data center potable and non-potable consumption can be distinguished from other uses. Because the enacted measure uses a delayed effective date and aggregate reporting may not identify a single facility, local project-level water estimates and permit records remain important.
The electricity tax is separate from the sales-tax exemption
The enacted 2026 budget imposes a temporary $0.011-per-kWh tax on electricity consumed at a data center for the two-year budget period beginning July 1, 2026. It should not be confused with Virginia’s separate sales-and-use-tax exemption for qualifying data center equipment.
Large-load cost allocation remains document-specific
The SCC’s July 31, 2026 order in PUR-2026-00056 addresses Rider T1 and a prospective policy for certain direct-connect transmission facilities. Broader regional transmission, generation, and ratepayer-cost questions can be governed by other tariffs and proceedings. Read the order alongside the current utility filing and approved tariff.
Local rules still control much of project review
Zoning district, special-exception standards, setbacks, design, landscaping, sound limits, water and sewer approvals, stormwater, transportation, fire safety, and development conditions vary by locality. Start with the parcel and application date, then build a source list from the local planning file, Virginia LIS, DEQ permits, SCC dockets, utility tariffs, and the regional grid operator.
Record the bill or case number, enacted text, effective date, agency guidance, local rules, and the date you last verified each source.
PRIMARY SOURCES
Verify the public record
These official or institutional sources support the guide. Check the original text and its effective date before relying on a summary.