Briefing 04/17/2025
Weekly updates on the political risks American data center projects
This week’s roundup: Virginia Gov. Youngkin stalled a bipartisan bill that would have required environmental reviews for data centers, reinforcing patchwork local rules. In Maryland, lawmakers passed a sweeping energy bill enabling up to 10 fast-tracked power projects—potentially gas plants—to meet rising demand from data centers. Environmental groups are split, and Gov. Moore has not yet said if he’ll sign it. In Louisiana, a judge dismissed a challenge to Meta’s $10B data center, allowing Entergy’s gas plant plans to move forward despite transparency concerns.
Gov. Youngkin Blocks Bipartisan Data Center Oversight Bill
Gov. Glenn Youngkin has amended and effectively sidelined HB1601, a bipartisan bill that would have required data center developers to disclose noise and environmental impacts before receiving local approvals. Youngkin’s amendment delays implementation until 2026 at the earliest and conditions it on reenactment by the General Assembly—effectively putting it on hold indefinitely.
Bill Information (HB1601):
HB 1601 / SB 1449: Requires site assessments for data centers, evaluating their impact on water, agricultural resources, parks, historic sites, and sound levels.
Why it matters:
State-local split grows: Youngkin’s move highlights the rift between state-level pro-growth policies and local demands for more data center oversight.
Patchwork regulations remain: With no statewide framework, data center oversight continues to vary by locality, forcing developers to navigate inconsistent and often restrictive zoning rules.
Activists stay local: Many Virginia activist groups like PECVA, saw HB1601 as insufficient. Its failure leaves the door open for them to keep challenging projects through local channels.
West Virginia Senate Committee Amends Data Center Tax Formula After County Pushback
The West Virginia Senate Economic Development Committee amended HB 2014, a bill introduced on behalf of Gov. Patrick Morrisey to attract microgrid-powered data centers, after strong objections from county officials. The original version would have centralized most property tax revenue from data centers into state-managed funds. The amended version now allocates 30% of tax revenue directly to the host county.
The debate over HB 2014 reveals rising tension between state-led economic development strategies and local governments' demand for fiscal revenue. While West Virginia aims to centralize incentives to attract high-tech infrastructure, counties are pushing back to protect local tax bases.
Bill Information (HB 2014): Establishes the Certified Microgrid Program to attract high-impact data centers by allowing them to operate independent energy grids within designated districts, aiming to boost economic development and modernize energy infrastructure.
Sponsors: Del. Roger Hanshaw (R), Del. Clay Riley (R), Del. Bob Fehrenbacher (R), Del. William Anderson (R), Del. Mark Zatezalo (R), Del. James Akers (R), Del. Sean Hornbuckle (D)
Votes:
House: 88 YES (81 R, 7 D) – 12 NO (12 D)
Senate: Passed 32 YES (30 R, 2 D) – 1 NO (1D)
Opposing groups and voices:
Berkeley County Commission: President Eddie Gochenour led opposition, warning the bill would strip local revenue and vowing to "fight like the last monkey on the ark."
Other county officials: Warned of a "game changer" in local finances, with testimony highlighting how the original bill would redirect nearly all new tax income to the state.
Why it matters:
Local Revenue Conflict: Counties like Berkeley feared losing millions in future tax revenue from high-impact data centers, raising concerns over service funding and local approval for future sites.
Shifting Incentive Landscape: The revised formula may influence data center siting decisions, as counties evaluate financial trade-offs and political leverage.
More Than 100 Maryland Landowners Refuse Power Line Surveys, Triggering Federal Lawsuit
PSEG has filed a federal lawsuit against more than 100 landowners in Central Maryland who are refusing to grant access for environmental surveys tied to the Maryland Piedmont Reliability Project—a 67-mile transmission line intended to support growing electricity needs driven largely by data center expansion.
The opposition is led by STOP MPRP, Inc., an organized local group resisting what they see as a threat to rural land and property rights.
Why it matters:
Grid infrastructure delay risk: PJM commissioned this line to support rising demand from data centers, especially in Northern Virginia; delays could bottleneck energy expansion plans.
Organized rural resistance: The all-volunteer STOP MPRP effort illustrates how community opposition can legally disrupt critical transmission upgrades for data center growth.
Links
Democrat-led Clean Cloud Act Targets Emissions From Crypto And AI Data Centers
https://carbonherald.com/democrat-led-clean-cloud-act-targets-emissions-from-crypto-and-ai-data-centers/
Data center boom tests Arizona's power grid
https://www.axios.com/local/phoenix/2025/04/16/arizona-data-centers-energy-power-ai
Data Centers: Economic benefit or environmental boondoggle?
https://thenevadaindependent.com/article/data-centers-economic-benefit-or-environmental-boondoggle
New incentive proposal aims to get Colorado into data-center recruitment game
Customers could end up paying for data centers’ energy costs in the absence of reform: Experts