Loudoun Supervisors Advance 12-Month Pause On New Data Center Applications: Report

LOUDOUN COUNTY, VA — Loudoun County supervisors moved Tuesday toward temporarily stopping new data center applications, according to a new report.

NBC 4 reports that the county Board of Supervisors advanced a proposal for a 12-month pause on new data center applications during its business meeting Tuesday evening. The vote instructs staff to write a resolution outlining the pause, which would then get a final vote in October.

The action does not immediately impose a moratorium, and the proposed pause would apply to new applications rather than existing data centers or projects already in the development pipeline.

The proposal comes as Loudoun, which has among the world's largest concentrations of data centers, considers how much additional development it should accommodate while updating its land-use and zoning standards.

As of March 1, Loudoun had about 233 existing data center buildings, representing approximately 56.5 million square feet of space either built or in various stages of construction. Another 35.7 million square feet had been approved but not yet built, and another 21 applications are requesting approval, according to the county.

Data centers also represent a source of county revenue. Loudoun reported receiving about $1.2 billion in real and personal property tax revenue from data centers in fiscal 2026, accounting for 39 percent of the county's overall budget. The county projects $1.3 billion in data center revenue in fiscal 2027, or about 40 percent of its budget.

County Already Tightened Data Center Rules

Tuesday's action is the latest in a series of moves by supervisors to tighten oversight of new data center development.

In March 2025, supervisors eliminated by-right data center development in Loudoun, and some supervisors are currently trying to close a loophole that allowed some projects to be excluded from the new regulations. New data centers generally must now obtain a special exception from the Board of Supervisors, a process that includes a public hearing and a board vote.

Meanwhile, Loudoun is working on the second phase of its broader Data Center Standards and Locations project. That work is examining issues including land-use compatibility, aesthetics, infrastructure and environmental resources. The county expects the overall project to be completed in spring or summer 2027.

Debate Over Data Center Growth

Supporters of a temporary pause have argued that Loudoun needs time to finish those regulations before accepting more applications. Residents have also raised concerns about noise, pollution from backup generators, power demand, transmission lines and data centers being built near residential communities.

On Tuesday, the Virginia Department of Environmental Quality issued Microsoft a $2.5 million fine for air pollution from a data center it operates in Leesburg.

Opponents have pointed to the industry's economic benefits and employment. Electrical workers who spoke about the proposal Tuesday warned that stopping new projects could affect jobs associated with data center construction, Fox 5 reported.

A recent Brookings report on data-center job creation found that the centers do create jobs, though fewer than promised, though locations see no wage growth as a result of the data centers and housing prices that increase by 2-5%.