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HB323 • 2026

Data centers; Department of Energy shall lead efforts to accelerate use of waste heat, report.

An Act to direct the Department of Energy to make certain findings and recommendations and to convene a work group to provide expertise and feedback on the use of waste heat from data centers; report.

Energy
Enacted

This bill passed the Legislature and reached final enactment based on the latest official action.

Sponsor
Sullivan
Last action
2026-04-13
Official status
Acts of Assembly Chapter
Effective date
Not listed

Plain English Breakdown

The official source material does not provide specific financial figures or penalties, leaving these aspects undefined in the bill.

Using Waste Heat from Data Centers

This act requires the Department of Energy to lead efforts to use waste heat from data centers more effectively in Virginia by making findings and recommendations and creating a work group for feedback.

What This Bill Does

  • The Department of Energy must find ways to use waste heat from data centers better.
  • It needs to share information between data centers, potential users like homes or businesses, and the public.
  • It should look at what other places do well with using waste heat.
  • It has to make suggestions on how Virginia can increase the use of waste heat from data centers.
  • The Department must form a work group with experts to help them.

Who It Names or Affects

  • The Department of Energy
  • Data center companies in Virginia
  • Potential users of waste heat like homes and businesses

Terms To Know

Waste Heat
Extra heat produced by machines that is usually wasted but can be used for other purposes.
Work Group
A team of people with different skills and knowledge who work together on a specific task or project.

Limits and Unknowns

  • The bill does not specify how much money will be spent to implement these requirements.
  • It is unclear what the exact findings and recommendations will be until the report is submitted.
  • There are no details about penalties for non-compliance with the act.

Bill History

  1. 2026-04-13 Governor

    Approved by Governor-Chapter 591 (effective 7/1/2026)

  2. 2026-04-13 Governor

    Approved by Governor-Chapter 591 (effective 7/1/2026)

  3. 2026-04-13 Governor

    Acts of Assembly Chapter text (CHAP0591)

  4. 2026-03-14 House

    Enrolled Bill communicated to Governor on March 14, 2026

  5. 2026-03-14 Governor

    Governor's Action Deadline 11:59 p.m., April 13, 2026

  6. 2026-03-12 House

    Signed by Speaker

  7. 2026-03-12 Senate

    Signed by President

  8. 2026-03-12 House

    Fiscal Impact Statement from Department of Planning and Budget (HB323)

  9. 2026-03-12 House

    Enrolled

  10. 2026-03-12 House

    Bill text as passed House and Senate (HB323ER)

  11. 2026-03-05 Senate

    Read third time

  12. 2026-03-05 Senate

    Passed Senate Block Vote (39-Y 0-N 0-A)

  13. 2026-03-04 Senate

    Rules suspended

  14. 2026-03-04 Senate

    Passed by for the day

  15. 2026-03-04 Senate

    Constitutional reading dispensed Block Vote (on 2nd reading) (39-Y 0-N 0-A)

  16. 2026-03-04 Senate

    Passed by for the day Block Vote (Voice Vote)

  17. 2026-03-02 Commerce and Labor

    Reported from Commerce and Labor (13-Y 0-N)

  18. 2026-02-05 Senate

    Constitutional reading dispensed (on 1st reading)

  19. 2026-02-05 Commerce and Labor

    Referred to Committee on Commerce and Labor

  20. 2026-02-05 Labor and Commerce

    Fiscal Impact Statement from Department of Planning and Budget (HB323)

  21. 2026-02-04 House

    Read third time and passed House Block Vote (97-Y 1-N 0-A)

  22. 2026-02-04 House

    Reconsideration of passage agreed to by House

  23. 2026-02-04 House

    Passed House Block Vote (98-Y 0-N 0-A)

  24. 2026-02-03 House

    Read second time

  25. 2026-02-03 House

    committee substitute agreed to

  26. 2026-02-03 House

    Engrossed by House - committee substitute

  27. 2026-02-02 House

    Read first time

  28. 2026-01-29 Labor and Commerce

    Reported from Labor and Commerce with substitute (22-Y 0-N)

  29. 2026-01-29 Labor and Commerce

    Committee substitute printed 26106339D-H1

  30. 2026-01-27 Subcommittee #3

    Subcommittee recommends reporting with substitute (6-Y 0-N)

  31. 2026-01-27 Subcommittee #3

    House subcommittee offered

  32. 2026-01-19 Subcommittee #3

    Assigned HCL sub: Subcommittee #3

  33. 2026-01-11 House

    Prefiled and ordered printed; Offered 01-14-2026 26101896D

  34. 2026-01-11 Labor and Commerce

    Referred to Committee on Labor and Commerce

Official Summary Text

Department of Energy; use of waste heat from data centers; findings and recommendations; work group; report.
Directs the Department of Energy to lead efforts to accelerate the use of waste heat from data centers in the Commonwealth by making certain findings and recommendations and convening a work group to provide expertise, assistance, and feedback on the Department's efforts. The bill requires the Department to submit a report of its efforts, findings, legislative proposals, and recommendations no later than September 1, 2026.

Current Bill Text

Read the full stored bill text 
An Act to direct the Department of Energy to make certain findings and recommendations and to convene a work group to provide expertise and feedback on the use of waste heat from data centers; report.
Be it enacted by the General Assembly of Virginia:
1.
§ 1. The Department of Energy (the Department) shall lead efforts to accelerate the use of waste heat from data centers in the Commonwealth and shall (i) identify opportunities for beneficial use of waste heat from data centers; (ii) determine ways to appropriately share information and facilitate communication between existing and proposed data centers and potential public and private heat users, including residential, commercial, and public buildings, district heating systems, and industries that use low-temperature heat, within the Commonwealth that allow data centers, potential heat users, and the public to assess the potential for the use of waste heat from data centers and to establish connections between data centers and heat users; (iii) evaluate best practices and policies for using waste heat implemented in other localities, states, or countries; (iv) develop recommendations to accelerate the use of waste heat from data centers in the Commonwealth that identify the potential for using waste heat from data centers, its benefits and challenges, and recommendations for approaches to increase the use of waste heat from data centers in the Commonwealth and include an assessment of the estimated costs necessary to develop supporting infrastructure and associated programs; and (v) convene a work group that includes representatives from the Virginia Economic Development Partnership Authority, the data center industry, local governments, gas and electric utilities, relevant state agencies, potential users of waste heat, and other interested stakeholders to provide expertise, assistance, and feedback on the Department's efforts to accelerate the use of waste heat from data centers in the Commonwealth. The Department shall submit a report of its efforts, findings, legislative proposals, and other state or local policy recommendations to promote the use of waste heat from data centers in the Commonwealth to the Chairs of the House Committee on Labor and Commerce and the Senate Committee on Commerce and Labor no later than September 1, 2026.