Data centers; policy of the Commonwealth.

Plain English Breakdown

The bill's effective date is not specified in the provided source material.

Data Centers Policy for Virginia

This bill sets a policy for the Commonwealth of Virginia to encourage responsible operation of data centers while supporting grid reliability, affordability, and renewable energy deployment.

What This Bill Does

• Encourages coordination between data centers, state agencies, and regional grid operators to share information on energy usage, interconnection timelines, and barriers to rapid deployment of renewable and flexible energy resources.
• Incentivizes data centers to participate in demand response programs, implement energy storage and management systems, and leverage automated technologies to reduce peak demand and support grid stability.
• Encourages flexible energy practices that allow data centers to adjust energy consumption in real time based on available renewable generation.
• Ensures large-scale data centers pay their fair share of infrastructure investments to mitigate impacts on residential and small business ratepayers.
• Requires data centers to report water and aggregated energy usage, sustainability measures, and participation in grid support programs to appropriate state and federal agencies.

Who It Names or Affects

• Data center operators in Virginia
• State agencies involved in energy regulation
• Regional grid operators

Terms To Know

Demand response program

A program where data centers reduce their electricity use during peak times to help the power grid stay stable.

Grid reliability

The ability of an electrical system to provide a consistent and dependable supply of electricity.

Limits and Unknowns

• Does not specify how data centers will be incentivized or penalized for compliance.
• Does not detail the exact reporting requirements beyond mentioning water use, aggregated energy usage, sustainability measures, and grid support program participation.
• The bill's effective date is not provided.

Official Summary Text

Policy of the Commonwealth; data centers.
Provides that it is the policy of the Commonwealth to encourage the responsible operation of data centers in the Commonwealth while supporting grid reliability, affordability, and the deployment of renewable resources. The bill provides that in furtherance of this policy, the Commonwealth shall (i) promote coordination between data centers, state agencies, and regional grid operators to share information on energy usage, interconnection timelines, and barriers to rapid deployment of renewable and flexible energy resources; (ii) incentivize data centers to participate in demand response programs, implement energy storage and management systems, and leverage automated technologies to reduce peak demand and support grid stability; (iii) encourage flexible energy practices that allow data centers to adjust energy consumption in real time in alignment with available renewable generation; (iv) ensure large-scale data centers pay their fair share of infrastructure investments, mitigating impacts on residential and small business ratepayers; (v) require data centers to report water and aggregated energy usage, sustainability measures, and participation in grid support programs to appropriate state and federal agencies; and (vi) promote cybersecurity, physical security, and supply chain security measures to protect Virginia data center operations from foreign adversary access or compromise.

Current Bill Text

A BILL to amend the Code of Virginia by adding a section numbered
45.2-1706.2
, relating to policy of the Commonwealth; data centers.
Be it enacted by the General Assembly of Virginia:
1. That the Code of Virginia is amended by adding a section numbered
45.2-1706
.2as follows:
§
45.2-1706.2
. Policy of the Commonwealth; data centers.
It is the policy of the Commonwealth to encourage the responsible operation of data centers in the Commonwealth while supporting grid reliability, affordability, and the deployment of renewable resources. In furtherance of this policy, the Commonwealth shall:
1. Promote coordination between data centers, state agencies, and regional grid operators to share information on energy usage, interconnection timelines, and barriers to rapid deployment of renewable and flexible energy resources;
2. Incentivize data centers to participate in demand response programs, implement energy storage and management systems, and leverage automated technologies to reduce peak demand and support grid stability;
3. Encourage flexible energy practices that allow data centers to adjust energy consumption in real time in alignment with available renewable generation;
4. Ensure large-scale data centers
[

contribute equitably to infrastructure investment and cost allocation
pay their fair share of infrastructure investments
]

,
mitigating impacts on residential and small business ratepayers;
5. Require data centers to report

[

energy and water usage

water and aggregated energy usage
]

, sustainability measures, and participation in grid support programs to appropriate state and federal agencies; and
6. Promote cybersecurity, physical security, and supply chain security measures to protect Virginia data center operations from foreign adversary access or compromise.