The data center industry became more heavily regulated by state and local governments in 2025, and more rules are likely coming for the industry in some markets next year, McGuireWoods partner Greg Riegle told Law360 in a Dec. 17, 2025, story headlined “A Blockbuster Year for Data Centers.”
Riegle, who leads the firm’s data centers practice area, told Law360 that opposition to data centers has become more organized. Regional and national nonprofit organizations devoted to fighting the industry have emerged as a new political force alongside local residents.
“Every major jurisdiction in northern Virginia has increased the regulation on the data center industry — either increased it to simply regulate it more restrictively, or, if you’re being gracious, in some instances, tried to target the industry,” said Riegle, who is based in Tysons, Virginia.
Riegle said he also expects more scrutiny and disputes in 2026 over how data centers are taxed.
“As the facilities get bigger and the dollars continue to exponentially grow, the stakes are higher for localities and for the data center developers and operators paying the taxes,” he said.