Data Center Regulation

Pennsylvania and Virginia tighten data center rules amid mounting power demand concerns.

Data center development is accelerating in Pennsylvania and Virginia, with proposed projects that could sharply expand both states’ capacity, though many remain uncertain and may not be built. Virginia has 352 operating data centers and 391 planned, a pipeline that could nearly triple its current capacity; Pennsylvania has about 88 projects proposed for after 2026, but state officials say only five of more than 100 proposals have operating permits. In response to mounting concerns about energy bills, water, pollution and quality of life, Virginia Gov. Abigail Spanberger has restricted access to state development assistance and expedited permitting for large projects, barred agencies from using nondisclosure agreements for project details and directed agencies to develop further standards. Pennsylvania Gov. Josh Shapiro has also imposed new guardrails, with their effect on the project pipeline still to be seen. Industry representatives say AI-driven growth is intensifying electricity needs, prompting interest in on-site generation, batteries and microgrids to manage demand and reduce strain on the grid.

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