Northern Virginia is home to approximately 70 percent of the world’s data centers, making it one of the world’s most important digital infrastructure markets. Data centers provide substantial capital investment, employment, and revenue to the commonwealth and its localities.

On December 9, 2024, following a year of review, Virginia’s Joint Legislative Audit and Review Commission (JLARC) issued a long-awaited report on the impacts of Virginia’s data center industry. JLARC is a non-partisan state agency that conducts independent policy analyses and oversight of state agencies.

The report highlights the tangible economic benefits of data centers while addressing issues concerning statewide energy demand over the next decade. It also provides recommendations for future data center development and discusses economic impacts, natural and historic resource impacts, and the state’s use of data center tax exemptions.

The full report may be accessed HERE.

It is anticipated that the JLARC report will help inform local and state decision-makers on new data center policies, legislation, and regulations.

Walsh Colucci has substantial experience representing data center clients and proposals across the region.  We are available to assist you on your next data center proposal, and in navigating the rapidly-evolving landscape of state and local planning policies and zoning regulations affecting the industry.