Virginia Lawmakers Approve Legislation to Track Water Use by Data Centers Across Virginia

RICHMOND, VA — On Saturday, the Virginia General Assembly passed Senate Bill (“SB”) 553, sponsored by Senator Kannan Srinivasan (SD-32), and House Bill (“HB”) 496, sponsored by Delegate Elizabeth Guzman (HD-22), in partnership with Delegate Shelly Simonds (HD-70), to strengthen water-use reporting requirements and ensure the Commonwealth has better data on the amount of water being supplied to data centers.

This legislation comes as Virginia remains the global leader in data center development, with the largest concentration of facilities located in Northern Virginia. As the industry expands, policymakers and water resource planners have raised concerns about the lack of centralized tracking of data center water use, particularly because many facilities draw water from municipal systems rather than their own permitted sources.

Data centers can use millions of gallons of water per day to cool servers. Yet without consistent reporting, state and local planners lack the data needed to understand the industry’s impact on Virginia’s already strained water resources.

“For the past three years, I have introduced legislation to bring greater transparency to the data center industry, focusing on both energy demands and water consumption,” said Sen. Kannan Srinivasan. “My district is home to Data Center Alley, the largest concentration of data centers in the world, and I believe Virginia must ensure that the growth of this industry is matched with responsible planning and clear data. As data centers continue to expand into new corners of the Commonwealth, we must make sure that one of our most precious resources, our water, is carefully managed and protected.”

“Today, I was proud to pass HB 496. I promised my constituents in House District 22 that as data centers continue to grow across Virginia, our communities would not be left in the dark and we would hold these facilities accountable,” said Del. Elizabeth Guzman. “HB496 is a first step toward greater transparency and accountability, ensuring Virginians have clearer information about how these facilities use our water resources so we can make smarter decisions for our communities moving forward.”

“This bill is about transparency. Water is a shared resource so it’s important we have a baseline understanding of how much water data centers are using. They could be good stewards of these shared resources, using new technologies and reclaimed water, but we won’t know that until we have the data to back it up. This bill will shed light on what they consume,” said Del. Shelly Simonds who represents part of Newport News. 

SB 553 requires water suppliers that already report withdrawals and usage to the State Water Control Board to also report the total volume of water supplied to data centers during each reporting period. Reports must include the total amount of water delivered monthly or quarterly, with reclaimed water reported separately from potable water.