Suffolk Council Votes to Pause Data Center Projects While It Writes Rules

Suffolk will hold off on data center projects until it has regulations in place. The City Council unanimously approved a moratorium on Wednesday, ahead of any formal rules governing the facilities.

The measure defines a data center as a site whose primary function is storing, processing or transmitting data. That wording resembles definitions used in other Virginia localities. It does not cover businesses that happen to house computer network hubs, such as hospitals.

City leaders began discussing a temporary ban over the summer because Suffolk's ordinances contained no definition of a data center. Planners cautioned that the city's warehouse regulations could permit such facilities.

Councilmember John Rector said the pause gives the city time to ensure any data centers that eventually arrive "come in under terms that are agreeable to Suffolk and not to the data center operators." He added that the step is important given the impact data centers are having on communities across the state and perhaps across the country.

The Planning Commission recommended the moratorium in September. Several commissioners indicated it will not last indefinitely and said Suffolk should act without waiting to see what Virginia Beach or Chesapeake does. "We are living in the 21st century, and there are going to be data centers," Commissioner Johnnie Edwards said. "How we do it, that's up to us."

A draft of possible regulations has circulated on social media. It would require a council-approved permit and confine data centers to manufacturing areas. It also includes soundproofing, limits on the hours for generator testing, and a ban on using well water for operations. Centers using water-based cooling could connect to public water. Electricity providers would have to approve the facilities, and transmission lines would need to be placed underground.

Kevin Wyne, the director of planning and community development, told WHRO the draft has not been finalized and that staff is not ready to present it to the council or the Planning Commission. In an email, he wrote that staff is researching the issue and prepared the draft to offer guidance to elected officials, and gather their feedback, if asked.

Virginia is regarded as the data center capital of the United States, with many facilities concentrated between Northern Virginia and Richmond. Wyne told the council in May that developers are looking south for new sites.

One such project is planned by SimIS, Inc., a local company that has contracted with the Department of Defense and Homeland Security and drew pushback earlier this year over plans to lease office space to ICE. The firm's website says it is building a "right-sized facility" near Wilroy Industrial Park and will comply with the city's new rules once they are finalized.

Hampton Roads already has some data centers, mostly smaller ones. The hyperscale facilities commonly used for large language models and other artificial intelligence services have faced growing scrutiny and opposition across the country. In September, Gov. Abigail Spanberger released proposals to tighten environmental rules, increase developer transparency and shift data center-related energy infrastructure costs onto the industry.