Virginia zoning and land use for AI data centers

In short

Virginia has no statewide zoning code for AI data centers. Each county and city controls the siting and design of these facilities through its own zoning ordinance and comprehensive plan, under power delegated by the General Assembly. JLARC, Data Centers in Virginia presentation at 61 (Dec. 2024), King George County Development Guide, McCandlish & Lillard, Virginia Subdivision and Site Plan Law, Va. Code § 15.2-2259, Va. Code § 15.2-2223, Va. Code § 15.2-2230, Va. Code § 15.2-2230, Va. Code § 15.2-2230 In 2026, the legislature passed a law requiring site assessments for high energy use facilities, including an examination of the sound profile on homes and schools within 500 feet. Va. Code § 15.2-2209.4

The trend in the major Northern Virginia markets is fast and clear. By right AI data center development is being eliminated. Loudoun County ended it in March 2025. Loudoun County Fairfax County adopted strict new setback and noise rules in September 2024. Fairfax County Prince William County is moving the same way, even as its largest AI data center rezoning was voided by the Virginia Court of Appeals for inadequate public notice. Va. Ct. App. Opinion, Oak Valley, Mar. 31, 2026, Law firm analysis Elsewhere, from Stafford to Albemarle, counties are tightening their zoning too.

For sponsors and counsel, the takeaway is that new AI data center projects now face more local review, more public hearings, and more negotiation of proffers than even two years ago.

What is the state law framework for AI data center zoning in Virginia?

The grant of zoning power and Dillon’s Rule

Virginia follows Dillon’s Rule, which means local governments have only the powers the state legislature expressly gives them. The foundational grant of zoning authority comes from Section 15.2-2280 of the Virginia Code. It says every locality may, by ordinance, divide its territory into zoning districts and regulate the use of land, buildings, and structures within each district. Va. Code §§ 15.2-2286(A)(8), 15.2-2258, 15.2-2259

This is the legal backbone for every city and county zoning ordinance in the Commonwealth. There is no separate state zoning code for AI data centers. Each locality writes its own rules, as long as it does not exceed what the Code allows.

The comprehensive plan

State law also requires every locality to adopt and maintain a comprehensive plan for physical development. Va. Code § 15.2-2223 The plan is a policy document. It shows where the locality expects growth, what types of uses should go where, and where infrastructure like roads and utilities will be needed. The plan must consider broadband infrastructure and may designate corridors for electric transmission lines of 150 kilovolts or more. Va. Code § 15.2-2223

A locality must review its comprehensive plan at least once every five years. Va. Code § 15.2-2230 That five year review is often the moment when counties reconsider where AI data centers belong.

Although the comprehensive plan is advisory for private development, it has real legal weight for public facilities. Under Va. Code § 15.2-2232, no street, park, public utility facility, or public service corporation facility can be constructed unless the local planning commission finds it substantially in accord with the adopted plan. Va. Code § 15.2-2232 For AI data centers, this means the electric transmission lines and substations that serve them must clear that substantial accord hurdle. A telecommunications tower or facility that is allowed by right in a zoning district is deemed substantially in accord without separate commission approval.

Conditional zoning and proffers

When a developer wants to build an AI data center on land that is not zoned for the use or wants more flexibility, the developer can ask the locality to rezone the property. The locality may approve the rezoning subject to conditions that are not generally applicable to land similarly zoned. That process is called conditional zoning. Va. Code §§ 15.2-2296 to 15.2-2300

Often the developer will offer voluntary commitments called proffers. Proffers can address setbacks, noise, screening, landscaping, traffic mitigation, or cash payments for public improvements. Once accepted, the proffers become legally binding on the land and run with the property. Virginia law authorizes conditional zoning, whereby a zoning reclassification may be allowed subject to conditions proffered by the zoning applicant for the protection of the community. Va. Code § 15.2-2296

Public notice and the 30 day appeal clock

Before a locality can recommend or adopt a zoning ordinance or amendment, it must publish notice in a newspaper of general circulation at least twice. The first notice must appear no more than 28 days before the hearing, and the second must appear no less than 5 days before. Va. Code § 15.2-2204(A) Failure to follow this notice rule can be fatal, as the Digital Gateway litigation showed.

Any challenge to a zoning decision based on a failure to advertise or give notice must be filed in circuit court within 30 days of the decision. Va. Code § 15.2-2204(E)

Zoning decisions are legislative acts. A court will uphold a rezoning as long as it is fairly debatable. Caparoula v. Bd. of Cnty. Supervisors, No. 1137-24-4 That is a deferential standard. But a procedural defect, like a notice violation, can void the entire action.

What did the 2024 JLARC study find and recommend for AI data center zoning?

In December 2024, the Joint Legislative Audit and Review Commission (JLARC), Virginia’s legislative watchdog, released a comprehensive study of the AI data center industry. It found that the industry contributed $9.1 billion annually to the state’s GDP and supported 74,000 jobs, representing 84 percent of all capital investment tracked by the Virginia Economic Development Partnership from fiscal year 2022 through 2024. Loudoun County FY2025 estimate, Loudoun County report, JLARC Report

But the study also highlighted local impacts. Nearly one third of Virginia’s AI data centers sat within 200 feet of residential areas, with Fairfax County having the highest proportion at 55 percent. JLARC Report A typical Dominion Energy residential customer could see generation and transmission costs rise by an estimated $14 to $37 monthly in constant dollars by 2040, JLARC estimated. JLARC Report

Two recommendations are especially relevant to land use. The JLARC report recommended that localities classify AI data centers as industrial uses in their zoning ordinances, revise zoning maps to prevent by right AI data centers next to residential areas, adopt sufficient minimum requirements for setbacks and building heights, designate optimal locations away from homes and close to transmission, and require pre development sound modeling. JLARC Report Recommendation 8 urged the General Assembly to expressly authorize localities to set and enforce maximum sound levels for AI data centers using alternative low frequency noise metrics, separate from existing noise ordinances. JLARC Report

Those recommendations directly shaped the 2026 legislation.

What new state laws on AI data center zoning were enacted in 2026?

The General Assembly considered more than 60 data center related bills in the 2026 session. Fifteen were sent to the Governor. MultiState, Law firm analysis Here are the land use laws that passed.

HB511 requires AI data centers to be designated as industrial uses. This law (Va. Code § 15.2-2295.3) applies to any locality that already addresses AI data centers in its zoning ordinance or is revising its ordinance to include them. By its next comprehensive plan update, the locality must review and amend its zoning ordinance to designate AI data centers as industrial uses. It must also review the zoning map to consider where AI data centers should be allowed by right, review minimum requirements such as setbacks and building heights to mitigate negative impacts and consider adding AI data center specific requirements, identify optimal areas for development, consider zoning ordinance changes to reduce the likelihood of noisy AI data centers, including through limiting allowable locations and requiring sound modeling, and prohibit the constant low frequency noise of AI data centers from reaching residential areas, and require commitments from AI data centers making zoning requests to mitigate impacts on nearby residential areas. Va. HB 511 (2026, as introduced) Va. Code § 58.1-3506(A)(43) classifies computer equipment and peripherals used in a data center as a separate class of tangible personal property for local taxation and includes its own definition of data center. Va. Code § 58.1-3506(A)(43)

In plain words, this law orders every county that deals with AI data centers to treat them as heavy industrial uses, not commercial or something lighter. And it forces a fresh look at the zoning map, with an emphasis on protecting homes. HB511 was incorporated into HB153 by the House Counties, Cities and Towns Committee on January 23, 2026, so its industrial-use requirements advanced and were enacted through HB153 rather than as a standalone bill. Virginia LIS

HB153 creates a permit process for high energy use facilities. This law requires a permit for facilities with 100 megawatts or more of energy demand. The permit requires a site assessment that examines sound profiles for homes and schools within 500 feet. It also allows localities to require assessments of impacts on water, agriculture, and registered historic sites. Virginia LIS

Other measures and the broader landscape. Former Governor Youngkin vetoed a 2025 bill that would have required similar site assessments. Incoming Governor Spanberger has said AI data centers should pay for their own energy and that localities need information to make informed decisions. MultiState A separate 2026 bill that would have paused local approvals for data centers did not advance. PEC analysis And the data center sales and use tax exemption, worth about $1.6 billion annually, remained unresolved in the regular session and was sent to a special session. MultiState

The result is that state level policy is tightening, but the primary action remains at the local level.

How has Loudoun County regulated AI data centers?

Loudoun County is home to the world’s largest concentration of AI data centers. Nearly half of its property tax revenue comes from these facilities, which has allowed the county to cut its residential property tax rate by nearly 40 percent over eight years. MultiState Revenue from AI data centers reached about $895 million in fiscal year 2025, roughly 31 percent of total local revenue. JLARC Report

On March 18, 2025, the Board of Supervisors approved a Comprehensive Plan Amendment and a Zoning Ordinance Amendment that eliminated by right development of AI data centers. Now, every new AI data center must obtain a Special Exception. That means a legislative review and public hearings before both the Planning Commission and the Board of Supervisors. Loudoun County

The county included a grandfathering provision. Projects with applications already under review as of February 12, 2025 may proceed under the old rules, but only if they are more than 500 feet from a residential area. Applications within 500 feet of residential areas are excluded from grandfathering and must go through the special exception process. Law firm analysis

Loudoun County cannot enact a total moratorium on new AI data center construction. Virginia law requires each application to be considered on its individual merits. Loudoun County moratorium statement

The county is also in Phase 2 of its AI data center regulation review, which began in early 2025 and is projected to take about 14 months. Phase 2 covers use specific zoning standards for AI data center buildings, utility substations, microgrids, and generators. Loudoun County, Law firm analysis

Example. Active Infrastructure’s Spring Valley Technology Park in Leesburg proposes a hydrogen powered AI data center running on fuel cells and battery storage. The project shows the kind of low emission alternative some localities encourage. Bean, Kinney & Korman analysis

How has Prince William County regulated AI data centers?

Prince William County took an early, structured approach. In 2016, it created the Data Center Opportunity Zone Overlay District (DCOZOD). The overlay covers about 72 percent of the county’s industrially zoned land, roughly 5,813 of 8,083 acres. Within the overlay, AI data centers are permitted by right in several industrial and office districts, including O(L), O(H), M-1, M-2, and others. Outside the overlay, AI data centers require a special use permit. AI data centers are prohibited outright in agricultural, residential, and several commercial districts. Prince William County Zoning Ordinance Part 509

The DCOZOD includes design standards. AI data centers may reach a floor area ratio of up to 1.0 and may exceed the underlying district’s maximum building height by 20 percent, as long as all other development standards are met. A minimum FAR of 0.4 applies when the site is not adjacent to properties planned agricultural or planned/zoned residential or mixed use. DCOZOD Working Draft § 32-509.03

Mechanical equipment and substations must be screened from public rights of way and residentially zoned properties. Chain link fencing with slats does not satisfy the screening requirement. Power lines of 34.5 kilovolts and below along public rights of way must be buried. Buffer yards of at least 50 feet are required next to commercial or office uses, and 100 feet next to agricultural, residential, or mixed use land. DCOZOD Working Draft

By 2022, the county had 33 existing AI data centers totaling about 5.5 million square feet, with 29 of them inside the DCOZOD. Prince William County FAQ

The move to end by right development and the Digital Gateway ruling

The Board of County Supervisors initiated a Zoning Text Amendment to eliminate by right AI data center development even within the DCOZOD. If adopted, all new AI data centers would require a special use permit. Adoption was projected for September 2026 Law firm analysis, DPA2026-00006.

The most significant recent event, however, came from the courts. The Prince William Digital Gateway rezoning involved three separate rezonings covering more than 2,000 acres and planned for up to 37 AI data centers and 14 substations, totaling nearly 23 million square feet. The Board of Supervisors approved the rezonings in December 2023.

On March 31, 2026, the Virginia Court of Appeals affirmed a circuit court ruling that the rezonings were void ab initio (void from the start) because the public notices did not comply with the advertising requirements of Va. Code § 15.2-2204(A) and the county’s own zoning ordinance. Va. Ct. App. Opinion, Oak Valley, Mar. 31, 2026 The county has spent about $1.6 million on legal expenses related to the case and may appeal to the Virginia Supreme Court. The 30 day appeal window from the ruling would close around April 30, 2026. Prince William County did not appeal the Digital Gateway ruling to the Virginia Supreme Court. The county Board of Supervisors voted on April 14, 2026 to withdraw from the litigation. WUSA9, InsideNoVa.

The Digital Gateway ruling is a stark reminder that even a large, long planned project can be undone by a procedural mistake at the very start.

A separate Prince William rezoning, the Caparoula case involving 270 acres, was upheld by the Court of Appeals in September 2025. The court applied the fairly debatable standard and rejected claims of illegality. Caparoula v. Bd. of Cnty. Supervisors That case confirms that a properly noticed and reasoned rezoning will survive challenge under Virginia’s deferential review.

How has Fairfax County regulated AI data centers?

Fairfax County adopted a major zoning ordinance amendment, ZO 112.1-2024-9, on September 10, 2024, effective the next day. The amendment added detailed use standards for AI data centers to the county’s zoning ordinance. Fairfax County

The new standards directly respond to the fact that Fairfax has the highest proportion of AI data centers near homes in Virginia. According to the JLARC report, 55 percent of Fairfax’s 20 AI data centers are within 200 feet of residential areas and 70 percent are within 500 feet. JLARC Report, FFXnow

Setbacks, noise, and Metro buffering

The 2024 amendment imposes three major distance rules.

• The AI data center building itself must be set back at least 200 feet from any residential district lot line or property developed with a residential use, though a lesser distance may be allowed by special exception.
• If located on the ground, cooling, ventilating, or power supply equipment must be at least 300 feet from residential lot lines or be separated from them by the principal AI data center building, though a lesser distance may be allowed by special exception.
• A data center building must be at least 1 mile from any Metro station entrance, though a lesser distance may be allowed by special exception.

Fairfax County Adopted Text ZO 112.1-2024-9

The 1 mile Metro station buffer was an increase from the originally suggested half mile. Fairfax Machine

The ordinance also requires preconstruction and postconstruction noise studies. The applicant must show compliance with the county’s Noise Ordinance (Chapter 108.1). All operating equipment must be fully enclosed or screened. Buildings must include a main entrance feature, facade variation every 150 feet, and minimum fenestration (window) design elements. In the lighter industrial and commercial districts, there are size limits, but a Special Exception can override them. Fairfax County Adopted Text ZO 112.1-2024-9, Fairfax County NewsCenter

Grandfathering

Site plans for AI data centers that were accepted for review before July 16, 2024 are reviewed under the prior ordinance. Site plans that had been approved before that date remain valid and do not need to meet the new standards. Fairfax County Adopted Text ZO 112.1-2024-9

Example, Plaza 500 (Bren Mar). Starwood Capital Group submitted a site plan on February 5, 2024 for a 461,444 square foot, 70 foot tall AI data center at 6295 Edsall Road in the Mason District. Because the site plan was submitted before July 16, 2024, it is grandfathered and proceeds by right under the old rules, not the 2024 amendment. Dominion Energy proposed a new 5 acre substation and 120 foot tall transmission lines about 80 feet from residential townhomes to serve the project. The State Corporation Commission held public hearings in late 2024 and early 2025. The SCC approved the Edsall substation and transmission lines in a final order on August 8, 2025 (Case No. PUR-2024-00135). SCC Final Order, Dominion Energy, Rose Hill Coalition

How is Stafford County handling AI data center zoning?

Stafford County moved in late 2023 and 2025 to establish a clear regulatory framework. Through Ordinance O23-24, it added specific definitions and regulations for AI data centers to the Stafford County Code. Stafford County The county later updated its Comprehensive Plan guidelines for AI data centers and adopted special regulations in 2025.

Importantly, Stafford adopted a grandfathering provision for projects that had received a reclassification, conditional use permit, or site plan approval on or before October 21, 2025. Five projects fall under that protection and are moving forward under the prior rules. Stafford County

The five grandfathered projects, together, total approximately 8.7 million square feet across 31 buildings. The largest is the Stafford Technology Campus at 5.8 million square feet (20 buildings). Stafford County

For new projects that are not grandfathered, the county’s Planning Commission in 2025 recommended strict setbacks, buffers, sound barriers, landscaping, and noise controls. The exact standards that will apply to future applications are still being refined, but the direction is toward stricter regulation. Stafford County

How are other Virginia counties regulating AI data centers?

Beyond the core Northern Virginia markets, many counties are actively rewriting their rules. The table below gives a snapshot of the approach taken by several emerging AI data center markets.

Chesterfield BizSense, Henrico County Staff Analysis, Engage Albemarle, Potomac Local, WHRO, AAAS Fact Sheet

Chesterfield County

Chesterfield currently allows by right AI data centers in C-5, I-2, and I-3 districts and with conditions in C-3, C-4, and I-1. The conditional rules limit outside utility infrastructure to one generator that does not exceed 200 square feet or 1 percent of gross floor area, whichever is greater, and require screening. Henrico County Staff Analysis The county’s Zoning Ordinance Modernization project, known as ZOMod, proposes to make all data center development a conditional use, requiring case by case Board of Supervisors approval, and to limit data centers to two new districts. BizSense via GoRVA Google, through Peanut LLC, has a planned AI data center here that is part of a $9 billion cloud and AI investment across Virginia. VPM

Henrico County

Henrico hosts 37 AI data centers, with the largest concentration in White Oak Technology Park. Henrico County Staff Analysis The county’s Planning Department released a staff analysis in May 2025 recommending comprehensive plan and zoning ordinance updates. Historically, the county has required extensive buffers at the perimeter of AI data center sites next to residential or agricultural zoning. Henrico County Staff Analysis Revenue from AI data centers supports the county’s affordable housing trust fund. Henrico County Staff Analysis

Albemarle County

Albemarle draws a bright line at 40,000 square feet. AI data centers up to that size are allowed by right in industrial districts. Anything larger needs a special use permit. In commercial districts, a special use permit is required regardless of size. Engage Albemarle

The county imposes strict baseline regulations, including a 200 foot setback from all lot lines, a 500 foot setback from the Rural Areas district, use of public water and sewer, closed loop water cooling, generator testing limited to weekday hours (10 am to 4 pm), fully enclosed generators to limit noise. Engage Albemarle

A proposal to create a two tier Data Center Overlay District that would have allowed larger by right development (up to 125,000 sq ft in Tier 1 and 500,000 sq ft in Tier 2) was indefinitely paused in October 2025 following community and environmental concerns. Engage Albemarle

Manassas City

Manassas approved on first reading in February 2026 new development standards for AI data centers and large industrial projects in I-1 and I-2 districts. The standards require preconstruction noise studies, architectural designs with 20 percent glazing on façades facing residential areas, full screening of mechanical equipment from public view, and increased setbacks from residential districts, childcare centers, parks, and open spaces. Potomac Local

James City County

In September 2025, James City County limited AI data centers to industrial districts and required special permits for any that wish to build. A draft policy suggests a size cap of 80,000 square feet, a prohibition on well water, and a requirement that AI data centers be close to power substations and transmission lines. WHRO A proposed data center on the former BASF acrylic fiber plant site in the Grove community has drawn opposition and a petition. WHRO

Harrisonburg

Harrisonburg removed by right permissions for AI data centers in industrial zones, requiring instead a special use permit with a public hearing and city council approval. AAAS Fact Sheet

Key takeaways

• The by right window is closing. Loudoun and Fairfax have already ended it. Prince William is moving the same way. Many smaller counties are following suit. Expect a special exception or special use permit to become the standard requirement for new AI data centers throughout Virginia.
• Public notice mistakes can be fatal. The Digital Gateway litigation shows that a failure to precisely follow the advertising requirements of Va. Code § 15.2-2204(A) can void a rezoning years after approval. Developers and counsel should make notice compliance a front end checklist item, not an afterthought.
• Proffers are the primary tool for managing local opposition. Because localities rely heavily on conditional zoning, the negotiation of proffers (noise limits, setbacks beyond the minimum, screening, infrastructure contributions) is where the real deal gets done.
• Grandfathering is project specific and date sensitive. Every county that tightened its rules included a grandfathering cutoff date. Missing it means facing the new, stricter regime. For projects already in the pipeline, confirm the applicable cutoff and whether any change to the application could break grandfathered status.
• The comprehensive plan matters for electric infrastructure. An AI data center building may be allowed by right, but the substation and transmission line serving it still need a finding of substantial accord with the comprehensive plan under Va. Code § 15.2-2232. Engage early with the planning staff on that process.
• Noise is now a hard compliance item, not a policy aspiration. Fairfax and Manassas require preconstruction and postconstruction noise studies. Prince William proffers for the Digital Gateway set specific decibel limits at the property line. JLARC and the 2026 legislation push every locality toward low frequency noise metrics.
• The five year comprehensive plan review is a strategic moment. HB511 forces localities to revisit their AI data center designations during the next plan update. Developers who want to protect or expand zones favorable to AI data centers should participate in those planning processes.
• State level changes are incremental but real. The industrial use mandate (HB511) and the high energy use permit process (HB153) will layer new requirements on top of local rules. Track implementation, especially the industrial reclassification and the site assessment standards.

Frequently asked questions

Q:What does by right mean for an AI data center?

A:A use that is listed as permitted by the zoning district. If an AI data center qualifies, the developer can build it after normal site plan review, without a separate public hearing or legislative vote. Va. Code § 15.2-2280

Q:What is a special exception or special use permit?

A:A special exception (often called a special use permit) is a permission granted by the local governing board after a public hearing. The locality decides whether the proposed use is appropriate at that specific location, and it can impose conditions. In the current environment, this is the most common path for new AI data centers.

Q:What are proffers?

A:Proffers are voluntary commitments the landowner offers to make when requesting a rezoning. They become legally binding conditions on the property. Typical proffers for AI data centers cover setbacks, noise limits, building height, landscaping, screening, traffic improvements, or cash payments. Prince William County data center proffer analysis (2024)

Q:How far does a Fairfax County AI data center need to be from a home?

A:The building must be at least 200 feet from any residential district lot line. If located on the ground, cooling, ventilation, and power equipment must be at least 300 feet from a residential lot line or be separated from it by the principal data center building. There is also a 1 mile buffer from any Metro station entrance. Fairfax County Adopted Text ZO 112.1-2024-9

Q:Can Loudoun County stop new AI data centers altogether?

A:No. Virginia law does not permit a local moratorium that treats an entire category of use as automatically prohibited. Each application must be decided on its own merits. But by requiring a special exception for every new AI data center, the county can impose conditions and deny applications that do not meet its standards. Loudoun County Data Center Standards & Locations

Q:What was the Digital Gateway ruling about?

A:The Prince William Digital Gateway was a trio of rezonings for up to 37 AI data centers and 14 substations on over 2,000 acres. The Board approved them in December 2023. The Virginia Court of Appeals ruled in March 2026 that the rezonings were void from the start because the public notices did not meet the advertising requirements of state law and the county’s zoning ordinance. The project cannot proceed under those rezonings. Va. Ct. App. Opinion, Oak Valley

Q:Are there statewide noise limits for AI data centers?

A:Not yet. Localities set their own. JLARC recommended that the General Assembly expressly authorize low frequency noise standards, and HB511 encourages local noise standards. Fairfax County requires compliance with its general noise ordinance and preconstruction and postconstruction studies. Prince William County imposed specific dBA limits through proffers. Some Virginia localities have taken steps to address data center noise, and JLARC recommends the General Assembly expressly authorize local governments to establish and enforce data center noise limits through zoning ordinances. JLARC Report

Q:How long does a local zoning approval take for an AI data center?

A:For a by right project, the site plan review may take a few months, depending on the county’s review queue. For a special exception or conditional zoning, the timeline stretches to many months and often a year or more, because it involves at least one public hearing at the planning commission and one at the board of supervisors, plus the time to negotiate proffers.

Q:What happened to the state sales tax exemption for data centers?

A:The exemption, the largest economic development incentive in Virginia, was not resolved in the 2026 regular session budget. It was sent to a special session. As of May 2026, its future is uncertain. MultiState

Q:Does HB511 require every Virginia county to allow AI data centers?

A:No. HB511 says that if a locality already addresses data centers in its zoning ordinance, or is revising its ordinance to include them, it must designate data centers as industrial uses and review its map. It does not force a locality to permit data centers where it currently prohibits them. But it does direct the locality to identify optimal areas and to limit impacts on homes. HB511 (2026)

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Junde Liu, JD, LL.M. (Taxation) candidate at UF Law. Originally published on Compute Law Blog. This article is general information and does not constitute legal advice. Reading it does not create an attorney client relationship. The reader should not act on the basis of any content here without first consulting a licensed attorney in the relevant state. Last reviewed for accuracy May 23, 2026.