Rep. Subramanyam Proposes Federal Plan to Address Data Center Growth Backlash
A Virginia congressman aims to balance national tech ambitions with community concerns through a four-part federal initiative.
A national security imperative to expand America's technological infrastructure is encountering resistance from communities slated to host these developments. This friction pits the United States' drive to maintain technological superiority against China with growing local opposition.
Rep. Suhas Subramanyam, D-Va., who represents "Data Center Alley" in Virginia, warns that without federal intervention, community backlash could impede the buildout that Washington considers a national priority. He emphasizes the necessity of community buy-in to facilitate this expansion.
"The communities are being steamrolled by the industry," Subramanyam told Fox News Digital. "They’re not feeling like anyone’s listening to them."
Subramanyam is advocating for a four-part federal plan designed to circumvent a perceived dichotomy between unchecked development and outright moratoriums. The proposal addresses facility siting, power costs, energy and water measurement, and security for both the facilities and the surrounding communities.
"If you are concerned about a race with China, when it comes to building data centers and AI, you should want to work with us on a plan to get community buy-in for where to build data centers," Subramanyam stated.
His proposed Fair Share Act would mandate that states require large power consumers to shoulder a greater portion of the infrastructure costs necessitated by their operations. He also suggests federal funding could be contingent on adherence to such measures.
The tension surrounding data center development has become increasingly apparent. Recent reports highlighted complaints of noise and encroachment from a large data center situated near a residential cul-de-sac in Ashburn. Subramanyam noted that while many residents in his district acknowledge the need for such infrastructure, they object to the distribution of its costs and burdens.
Loudoun County reports that revenue from data centers has contributed to a reduction in its real-property tax rate, from $1.145 per $100 of assessed value in 2016 to $0.805 in 2026, according to county data. However, Subramanyam argued that residents must balance these benefits against increased utility costs, citing concerns about water, air quality, and other community impacts.
The data center industry disputes the claim that their facilities drive up residential power bills. The Data Center Coalition, a trade group, has pointed to an analysis by the energy consulting firm E3, which found no historical evidence linking data centers to increased residential electricity costs under current rate structures.
Subramanyam contends that infrastructure with national implications should not continue to develop in an "ad hoc" manner governed by a fragmented system of state and local regulations. He believes that federal standards for siting, measurement, and security protections are essential.
Similar concerns have prompted action at the state level. In Virginia, Gov. Abigail Spanberger introduced a framework in September aimed at enhancing local control, shifting infrastructure costs to major power users, and establishing new standards for water usage and grid reliability. She stated that prior to her administration, Virginia lacked a comprehensive plan to address the impacts of data centers on residents.
Leaders across the political spectrum, including Texas Gov. Greg Abbott, have also outlined plans and highlighted the issue's significance. West Virginia, meanwhile, has pursued a different strategy by developing a microgrid program intended to attract large data center projects. This approach has faced criticism regarding potential limitations on local government powers, though proponents suggest it could lead to property tax elimination.
In Jefferson County, West Virginia, stakeholders recently engaged in discussions about the state's dive into data centers. County commissioner Cara Keys expressed concerns about the potential erosion of local control, while state officials maintained that project approvals would be handled carefully.
"Two things can be true: You can support data centers, and you can be against the guardrails lacking in [the law]," Keys remarked.
Subramanyam views the differing approaches across states as evidence of the need for a cohesive federal strategy before local opposition solidifies further. He stated that the current options appear to be either inaction or a complete moratorium, neither of which he considers viable for future development.