The backlash against internet data centers is gaining momentum across the country, with a wave of laws being enacted to rein in the industry’s rapid expansion and high energy consumption needed for cloud computing and smart technology.
In Northern Virginia, known for its high concentration of data center buildings, Prince William County recently raised its tax rate on equipment inside data centers by 72 percent in response to concerns about the excessive number of these large facilities being built. Neighboring Loudoun County, home to most of the data centers in Northern Virginia, is taking steps to keep these buildings away from residential areas and commercial corridors by subjecting all data center projects to county board review.
The pushback extends beyond Virginia. In Georgia, legislation was passed to place a two-year moratorium on tax incentives for the data center industry. Similarly, laws in Arizona, Illinois, and Arkansas have been introduced to suspend data center development or impose further restrictions on where they can be built.
The concerns about the impact of data centers on the nation’s electric grid have prompted these measures. Individual data centers consume up to 50 times more electricity than a typical office building, leading to strains on the grid. Anticipated closures of fossil-fuel plants in the Mid-Atlantic and parts of the Midwest have prompted grid operators to ask some coal plants to continue operating as part of a multi-billion dollar plan to address the energy gap.
As a major source of tax revenue for counties and cities, the data center industry is under increased scrutiny despite being seen as an economic driver. Legislators are launching studies to assess the industry’s impacts and find a balance between economic benefits and environmental concerns.
Industry representatives argue that data centers are essential for the economy and are working to minimize their impact on the grid and reduce greenhouse gas emissions. Companies are investing in carbon-free energy projects like solar and wind farms to directly power their facilities, although challenges in permitting and financing are delaying some projects.
Communities like Chandler, Arizona, have been vocal about the impact of data centers on their environment and infrastructure. Tightening regulations and requiring companies to demonstrate community benefits are part of the response to these concerns.
While some officials are concerned that stricter laws may drive data center companies away, others believe that balancing the industry’s growth with environmental and community needs is crucial. The debate over data centers’ impact on the economy, environment, and infrastructure continues as the industry’s expansion shows no signs of slowing down.
It seems like the news article is discussing data center regulations in Northern Virginia, Georgia, and Arizona. The article may provide insights into the differences in regulations for data centers in these states.