Data center building boom stirs pushback in state and local politics

Greg Pirio bought his home in the northern Virginia suburbs more than a dozen years ago, never imagining a massive data center would be his neighbor.

It’s one of around 200 such facilities in Loudoun County, considered the data center capital of the world.

President Trump has signed executive action to fast-track federal data center permitting and try to limit regulations in an effort to bolster infrastructure in the AI race.

“There’s only going to be one winner here, and that’s probably going to be the U.S. or China,” Mr. Trump said as he signed an executive order in December aimed at limiting AI regulations at the state level.

“We have the big investment coming, but if they had to get 50 different approvals from 50 different states, you can forget it, because it’s not possible to do, especially if you have some hostile. All you need is one hostile actor and you wouldn’t be able to do it. So it doesn’t make sense,” the president said.

Pirio compares the data center construction boom to a second Industrial Revolution, but he says it’s not without impacts to neighboring homeowners. He and his community have concerns about constant noise from the center, air pollution from an on-site power plant and rising electricity costs. 

Long-term, he worries about property values. 

“Like so many other people in the country, you know, that’s where our savings are, where we have our generational wealth,” he said. 

It’s an issue that John McAuliff believes helped him get elected to the state House last fall, representing parts of Fauquier and Loudoun counties. He flipped the seat from Republican to Democratic.

“Folks are waking up,” said McAuliffe. “I think that it is something that if you have these in your community, you’re starting to realize the impacts.”

He says it emerged as a top issue for voters he talked to while door-knocking in neighborhoods, and he made it a prominent issue in his campaign ads. 

As a newly sworn-in delegate, McAuliffe is now pushing for legislation aimed at making sure residents don’t foot the bill for electricity costs.

“I think it’s an important industry. I’m not saying they should all get out and leave, but I am saying that if you’re going to come into a community and you’re going to take resources out of that community, then you have to be willing to give back to that community,” he said. 

He also has proposed bills to address zoning and environmental concerns stemming from the data centers’ backup generators on site.

Dan Diorio of the Data Center Coalition, which advocates for the industry, says the industry is committed to covering its costs and working to mitigate community impacts. 

“The data center industry is committed to being a responsible partner,” said Diorio. 

He also points to significant community benefits from job creation and local revenue raised. Loudoun County describes the industry as an important part of the local economy, generating almost half of the county’s property tax revenues.

Diorio also argues the demand isn’t going away. 

“Digital infrastructure is the backbone of the 21st century economy. Increasingly, it is an essential part of ensuring the United States’ global economic competitiveness,” he said. “It’s a national security imperative. This is all of our data. We want it stored here.”

The U.S. Census Bureau says data center construction spending increased over 55% between 2023 and 2024. The top states for that spending include Louisiana, Virginia, Mississippi, Texas and Arizona, according to ConstructConnect. 

However, many of those living closest to the issue are pleading for more oversight. 

“Let’s slow things down so that we can do it in a way that’s gonna help communities, not damage them,” said Pirio.