On May 2, 2025, Virginia Gov. Glenn Youngkin vetoed Senate Bill 1449 and HB 1601, which would have imposed new requirements on local governments reviewing land use applications for high-energy-use facilities, including data centers.
Citing concerns over reduced local autonomy and increased regulatory burdens, the governor stated his concern that the bill’s one-size-fits-all approach could hinder data center development and chill future investment. He emphasized the industry’s critical role in Virginia’s economy, highlighting $24 billion in FY23 capital investment, $733 million in tax revenue for Loudoun County and statewide contributions of 74,000 jobs and $9.1 billion to GDP.
The General Assembly rejected amendments proposed by the governor to provide local flexibility, prompting the veto.
Data center stakeholders should continue to monitor legislative developments that may affect land use and energy policy in Virginia.
Learn more about the data center industry capabilities of McGuireWoods and McGuireWoods Consulting.