Data Center Restrictions
Virginia and Massachusetts Local Officials Move to Restrict Data Center Expansions Amid Community Concerns
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Key Points
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Loudoun County had approximately 233 existing data center buildings as of March 1, totaling about 56.5 million square feet built or under construction; another 35.7 million square feet had been approved but not yet built, while 21 additional applications were seeking approval.
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Loudoun’s county attorney said an indefinite moratorium would be illegal, which is why officials are proposing a pause limited to one year; supervisors are expected to vote on the measure Oct. 13.
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In Westfield, the Servistar special permit for Phase 1 is currently set to expire Oct. 19, 2026, after a statewide two-year blanket extension. City Planner Jay Vinskey said an additional extension could be granted only for “good cause,” and the Planning Board’s meeting discussion will not constitute a public hearing.
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Prince William County’s 120-day transition recommendation emerged after the eight-member Planning Commission deadlocked over immediate implementation, a six-month period and other alternatives. The final compromise passed 5-3 after Commissioner Raheel Sheikh changed his vote, while separate proposals for a 180-day period or a 2,500-foot buffer failed to advance.
Virginia and Massachusetts are pumping the brakes on data center expansion. WVTM Loudoun County supervisors voted 7-1 on September 15 to advance a 12-month pause on new data center applications, with a final vote expected October 13. The move comes as data centers—which generate 39% to 40% of Loudoun's budget—face growing backlash over noise, energy use, and high-voltage power lines. In Westfield, Massachusetts, officials are wrestling with a special permit extension request from a company that wants to build a massive 10-building campus that would create up to 2,000 regional jobs.
Prince William County took even bolder action. Virginia Court of Appeals Its Planning Commission voted 5-3 to recommend ending by-right data center development and requiring future projects to get special permission from supervisors. The board will hold a public hearing September 22 on new zoning rules that would shrink the Data Center Opportunity Zone and create a 500-foot buffer from homes and schools.
Loudoun's 'Data Center Alley' Faces Revenue Squeeze
Loudoun County has become the world's largest concentration of digital infrastructure—so-called "Data Center Alley." As of March, the county hosted 233 existing data center buildings totaling 56.5 million square feet. Another 35.7 million square feet had been approved but not yet built, with 21 additional applications pending approval. County Attorney Leo Rogers said an indefinite moratorium would violate Virginia law, which is why supervisors chose a one-year pause instead—a legal workaround that lets them reassess zoning and infrastructure impacts without a full ban.
Supervisor Juli Briskman, who proposed the pause, said the county had waited too long. Loudoun Supervisor Briskman "For too long, data center development has moved faster than our land use policies and our ability to address the impacts," she said. The pause exempts existing facilities and projects already in the pipeline, protecting the county's enormous tax base while giving officials breathing room to tackle community concerns.
Prince William Moves to Shrink Developer Privileges
Prince William County's Planning Commission took a harder line. It voted 5-3 to end by-right data center development—meaning developers can no longer build without special permission. The board also recommended shrinking the Data Center Opportunity Zone Overlay District and requiring a 500-foot buffer from homes and schools. The swing vote came from Commissioner Raheel Sheikh, who shifted his position to support the 120-day transition compromise after deadlock over immediate implementation and other timelines.
The proposal emerged after months of debate. Prince William County Planning Some commissioners wanted immediate implementation; others pushed for six months. The final compromise of 120 days allows developers time to adapt while letting the county overhaul its rules. A public hearing is set for September 22, with a Board of County Supervisors vote to follow on the zoning text amendment.
Westfield's Servistar Permit Hangs in Legal Limbo
In Westfield, Massachusetts, the Servistar Realties special permit for a 10-building, 274-megawatt data center campus is caught between two dates. The permit was originally set to expire October 19, 2026, following a statewide two-year blanket extension. Servistar Managing Member Erik Bartone "The designs haven't changed, noise levels haven't changed, equipment specs haven't changed," Bartone said, emphasizing the project would create up to 2,000 regional jobs and 400 permanent positions. Yet the city passed a one-year moratorium on new data center applications in July 2026.
The catch: Servistar's permit predates the moratorium, exempting it from the ban. On September 15, the Planning Board postponed a decision on Servistar's three-year extension request pending legal review. City Planner Jay Vinskey City Planner Jay Vinskey noted that extensions require proof of "good cause." The board's next move will determine whether the $4 billion project moves closer to construction or remains stalled in regulatory limbo.
Why Communities Are Pushing Back Hard
Residents and environmental advocates across all three jurisdictions cite the same complaints: noise pollution, sky-high energy consumption, and sprawling high-voltage power transmission lines. Data centers demand enormous amounts of electricity and water. Servistar's proposed facility alone could draw between 194,500 and 506,900 gallons of water daily. Federal Representative Suhas Subramanyam U.S. Rep. Suhas Subramanyam and Sen. Mark Warner introduced federal bills requiring data center developers to fund grid upgrades to ease the burden on local ratepayers.
The financial stakes are enormous. Loudoun County collected roughly $1.2 billion in data center property taxes in fiscal 2026—nearly 40% of its entire budget. A 12-month pause won't erase that revenue, but it signals that explosive growth must slow. Labor unions warned that pausing applications could cost construction jobs, yet residents say their quality of life matters too. These three jurisdictions are trying to strike a balance between economic necessity and community livability.
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