During the June 23, 2026, Board of Supervisors work session, Planning Director Michael Zuraf updated the board on the status of data center development in the county. There are currently 16 projects in the pipeline: five approved (three under construction) and 11 still under review. No new applications have been received since September 2025, following the county’s adoption of stricter ordinance and comprehensive plan amendments.
No Moratorium Possible; Reviews Continue
Board members and staff acknowledged community concerns about rapid growth, noise, power demands, and other impacts. However, Zuraf and county leaders emphasized that halting the 11 pending applications mid-review would not be legally viable. Virginia law limits localities’ ability to impose arbitrary pauses on lawfully submitted land-use applications, and doing so could invite legal challenges related to vested rights and due process.
Instead, the county is focusing on consistent, thorough reviews under the updated 2025 standards (including enhanced setbacks and sound requirements). Staff is developing internal guidance documents to ensure fairness and transparency across projects. Two earlier proposals have been removed or modified, and one site was revised to shift data center elements.
Challenges in the Review Process
Zuraf highlighted several practical hurdles:
- Dominion Energy changes: The utility no longer issues early “load letters” confirming power availability. Projects are now batched by service feasibility, with assurances coming closer to the site plan stage. This requires procedural adjustments to keep applications moving without stalling.
- Sound study requirements: Accreditation by a certified professional engineer (Institute of Noise Control Engineering) has delayed some applicants, particularly when mitigation is needed.
The board discussed the need for a clearer overall “framework” or matrix to guide reviews of noise, water, utilities, generators, and related issues. Supervisors expressed interest in hiring an outside consultant (subject to procurement) for expert input and to improve public transparency, such as through enhanced dashboards.
New state requirements under House Bill 153 (effective July 1, 2026) will add mandatory sound profile assessments for larger facilities (≥100 MW) located near residential areas and schools, as well as utility substation details. These will necessitate zoning ordinance updates.
Statewide Budget Context
Stafford’s local efforts occur against a backdrop of intense debate at the state level. In the recently concluded 2027 budget negotiations (finalized around June 30, 2026), Governor Abigail Spanberger, Democrat, and House Democrats clashed with Senate Democrats over long-standing data center tax incentives — primarily a sales-and-use tax exemption on equipment valued at nearly $2 billion annually.
The Senate pushed to end the exemption early to generate revenue for schools, healthcare, and tax relief. Spanberger and the House resisted, arguing it would break prior state commitments and harm Virginia’s competitive business climate. The final compromise preserved the existing exemptions while introducing a new electricity consumption tax ($0.011 per kWh, capped at ~$600 million per year), expected to yield about $1.2 billion over two years.
This resolution averts an immediate crisis but signals ongoing scrutiny of data center costs and benefits as the industry expands. For Stafford County — home to a significant portion of the pipeline — the outcome reinforces the need for careful local management within the evolving state framework.
