The Loudoun Board of Supervisors voted to require a board review process for data centers that would have been by-right.
Patch Staff
|Updated Thu, Mar 20, 2025 at 5:22 pm ET
ASHBURN, VA — Loudoun County, the world's data center capital, is taking action to restrict by-right development of future data centers.
On Tuesday, the Board of Supervisors enacted a more restrictive approval process for data center applications that are currently by right. Instead of an administrative review by county staff in areas where data centers have been allowed by right, those applications will now require a legislative review by the Planning Commission and Board of Supervisors.
Data centers in certain areas and with applications requiring special exceptions already must go through that Planning Commission and Board of Supervisors review process.
The motion eliminating by-right approvals received support from all supervisors but Supervisor Caleb Kershner (R-Catoctin) and Supervisor Kristen Umstattd (D-Leesburg).
The board also approved a grandfathering resolution, which means the former approval process would apply to applications the county has already accepted for review as of Feb. 12, 2025.
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The grandfather provision will only apply to proposed data centers more than 500 feet from residential uses with no major changes to the application. Theresolution received support from Chair Phyllis Randall (D-at large), Supervisor Koran Saines (D-Sterling), Kershner, Umstattd and Supervisor Matt Letourneau (R-Dulles).
Loudoun County has the world's largest concentration of data centers, notably in an area of Ashburn nicknamed "Data Center Alley." The large presence of data centers has contributed significantly to the county's tax base, which County Administrator Tim Hemstreet said allowed him to recommend decreases to the real estate and vehicle personal property tax rates in the latest budget proposal.
But opponents of data centers have pointed to environmental concerns, a greater demand for electricity and strain on the electric grid, as well as noise issues for facilities near residential communities.
The county previously noted that the Board of Supervisors cannot legally impose a moratorium on new data center applications. Under Virginia law, localities must consider each rezoning or special exception application.
The grandfathering resolution affects some of the applications already in the county pipeline. According to a county staff presentation, there are three data center applications currently under review within 500 feet of residential uses, which means they wouldn't be covered by the grandfathering resolution and would require legislative review.
There are 19 applications under review outside the 500 feet, which means the grandfathering resolution covers them and they will only require a county staff administrative review.
Randall expressed support for restrictions on data centers, including excluding applications within 500 feet of homes from the grandfather measure.
"I've said many times that data centers are a double-edged sword, and all the things they do for our economy have been said and are very, very appreciated," said Randall. "However, homeowners have also spent money on their homes. Homeowners are living in their retirement. We can't simply say data centers bring lots and lots of revenue, and that's what we're going to do."
Supervisor Sylvia Glass (D-Broad Run), whose district includes a large concentration of data centers, said they are one of the topics she hears about most from her constituents. Glass said the data centers have made revenue contributions and assisted nonprofits in the community, but she supports greater review over these developments.
"These changes will help empower us, the board, to make thoughtful decisions regarding with data centers that we build in our communities," said Glass.
Kershner and Umstattd, who ultimately voted against eliminating by-right approvals for data centers, shared concerns about eliminating the by-right option for data centers.
"I'm concerned in general about taking away by-right opportunities for businesses that have invested or for homeowners who have invested," said Umstattd. "We try to treat everybody on an equal playing field. There have been hundreds of millions of dollars invested in the county, and the results we've seen in allowing us to lower taxes."
Letourneau, however, shared an example of a by-right South Riding data center application that he pushed to find a different site for. The supervisor said the applicant would not work with him.
"We have 400,000 some bosses, and they've asked us to do something," said Letourneau. "Every meeting, we hear the horror story of what we're dealing with on the Mars to Golden transmission line. … I'm appreciative of the amazing revenue, and also I've been pretty consistent about supporting data centers in places where they should be. But the reality is, some of them haven't been, and some of them aren't."
Supervisor Juli Briskman (D-Algonkian) responded to public comment about board members financially benefiting from data centers, which she said "is completely offensive and completely false."
However, she noted that electricity demand from data centers continues to be a concern, with Dominion Energy estimating it would need 50 more substations based on growth projections.
"It's an industry in our county that has been very successful, and we are very proud of, and it's also an industry in our county that our residents are suffering from fatigue over. They are not happy about the power lines," said Briskman.
Supervisor Laura TeKrony (D-Little River) noted that the county has become overreliant on data center revenue. She expressed shock about the need for 50 more substations and said she would do more research on that.
"I know the data center industry has been great partners," said TeKrony. "I want to support the existing community, but I know that residents are really feeling the impacts with the amount of transmission lines that we have going through this county and also the amount of substations."
Supervisors considered various amendments, and some did not move forward in the grandfathering motion. Supervisor Juli Briskman introduced an alternative to exclude by-right administrative applications from the grandfathering resolution, hoping to get under-review applications a legislative review. But that motion failed 4-5, with only Briskman, TeKrony, Vice Chair Michael Turner (D-Ashburn) and Glass supporting.
"It's basically in my mind and some of my colleagues' mind, it's basically approving 22 new data centers to the tune of I think it's about 61 million square feet of data centers, it's more than doubling our data center square footage in the county," said Briskman.
Letourneau questioned the fairness of having data center applicants a year or two into the process start over with new rules. However, he called the 500-feet from residential standard a compromise.
"What we are trying to do here is to strike a compromise, and the carve-out here on the grandfathering is to get at the exact issue that the residents are most concerned about and that the board hasn't wanted, which is data center residential too close together," said Letourneau.
Another motion by Kershner to move the grandfathering date for submitted data center applications from Feb. 12 to March 18 failed. The later date was intended to grandfather applications up to the point of the board voting on the by-right approval changes. That motion only received support from Kershner and Umstattd.
Tuesday's decision was the end of the first of two phases to update data center and substation policies and standards. The first phase was the result of the Board of Supervisors directing staff in February 2024 to prepare a comprehensive plan amendment and zoning ordinance amendment on the matter.
The second phase will focus on updates to the county's 2019 Loudoun County General Plan addressing policies applying to data centers and substations like land use, site and building design, noise, energy, light and more as well as zoning ordinance amendments for revised standards. The county estimated phase 2 could take 14 months to complete.