Briefing 04/10/2025
This week’s roundup: Virginia Gov. Youngkin stalled a bipartisan bill that would have required environmental reviews for data centers, reinforcing patchwork local rules. In Maryland, lawmakers passed a sweeping energy bill enabling up to 10 fast-tracked power projects—potentially gas plants—to meet rising demand from data centers. Environmental groups are split, and Gov. Moore has not yet said if he’ll sign it. In Louisiana, a judge dismissed a challenge to Meta’s $10B data center, allowing Entergy’s gas plant plans to move forward despite transparency concerns.
Gov. Youngkin Blocks Bipartisan Data Center Oversight Bill
Gov. Glenn Youngkin has amended and effectively sidelined HB1601, a bipartisan bill that would have required data center developers to disclose noise and environmental impacts before receiving local approvals. Youngkin’s amendment delays implementation until 2026 at the earliest and conditions it on reenactment by the General Assembly—effectively putting it on hold indefinitely.
Bill Information (HB1601):
HB 1601 / SB 1449: Requires site assessments for data centers, evaluating their impact on water, agricultural resources, parks, historic sites, and sound levels.
Why it matters:
State-local split grows: Youngkin’s move highlights the rift between state-level pro-growth policies and local demands for more data center oversight.
Patchwork regulations remain: With no statewide framework, data center oversight continues to vary by locality, forcing developers to navigate inconsistent and often restrictive zoning rules.
Activists stay local: Many Virginia activist groups like PECVA, saw HB1601 as insufficient. Its failure leaves the door open for them to keep challenging projects through local channels.
Maryland Passes Controversial Energy Bill as Data Center Demand Pressures Grid
In the final hours of Maryland’s 2025 legislative session, lawmakers passed the Next Generation Energy Act (HB1035), a bill aimed at modernizing the state’s energy infrastructure and managing rising electricity costs. The bill allows for fast-tracking up to 10 “dispatchable” energy projects—potentially including new gas-fired plants—to handle soaring demand, particularly from data centers.
Bill information:
HB1035 / SB937: Incorporates provisions for emissions reductions, rate regulation, cost recovery, infrastructure planning, renewable energy portfolio standards, and energy assistance programs.
Sponsors: HB1035 – Delegate C.T. Wilson (D); SB937 – Senator Brian Feldman (D)
Vote Totals:
House: Passed on April 5, 2025, with a vote of 96 YES – 40 NO
Senate: Passed on April 7, 2025, with a vote of 34 YES – 8 NO
Status: Returned Passed; awaiting action by Governor Moore.
Opposition and support:
Opposed: The League of Conservation Voters and some environmental justice advocates, who criticized the bill as backsliding on climate goals.
Supportive: The Chesapeake Climate Action Network backed the bill due to provisions like battery storage mandates and elimination of trash incineration subsidies.
Political figures: While the bill passed the Democratic-controlled legislature, Republicans criticized it for not going far enough to promote gas development. Governor Wes Moore has not yet indicated whether he will sign it.
Why it matters:
Fast-tracking development: The bill directly links new energy infrastructure planning to the rapid growth in data center energy demand, positioning them as a major driver of Maryland’s grid reliability concerns.
Environmentalist opposition: The bill accelerates fossil fuel projects, which may temporarily ease power constraints for data centers but risks backlash from environmental groups.
Judge Dismisses Legal Challenge Against Meta’s $10B AI Data Center in Louisiana
A Baton Rouge administrative judge ruled that Meta and its subsidiary Laidley LLC are not required to appear before state regulators in Entergy’s request to build three gas plants powering Meta’s Richland Parish data center.
Environmental and consumer groups had argued Meta’s participation was necessary to address missing details around jobs, sustainability, and the cost burden on ratepayers. The judge rejected that claim, allowing the project to move forward without Meta's direct involvement.
Key opposing group:
Alliance for Affordable Energy: Opposed the gas plant plan, criticized the lack of transparency, and signaled plans to pursue depositions to obtain more information directly from Meta following the judge’s ruling.
Why it matters:
Transparency Risks: Opposition groups say key details of Meta’s data center are being shielded from public view, including whether ratepayers might subsidize Meta’s power needs.
Fossil Fuel vs. Renewables: Entergy plans to build three gas plants prompting backlash from clean energy advocates concerned about locking in fossil infrastructure for decades.
As fossil fuel use to power data centers draws more attention, opposition groups are becoming more organized and legally active, setting the stage for regulatory and political battles ahead.
Links
Advantages and Challenges of Nuclear-Powered Data Centers [U.S. Department of Energy – Office of Nuclear Energy]
https://www.energy.gov/ne/articles/advantages-and-challenges-nuclear-powered-data-centers
Trump order looks to tap coal in quest to power data centers - Bloomberg News reports
https://www.reuters.com/business/energy/trump-order-looks-tap-coal-quest-power-data-centers-bloomberg-news-reports-2025-04-08/
Microsoft shelves another $1bn data center project as tariff fears rise
https://www.techradar.com/pro/microsoft-shelves-another-usd1bn-data-center-project-as-tariff-fears-rise
Google pledges $75 billion to expand data center and AI infrastructure
https://finance.yahoo.com/news/google-pledges-75-billion-expand-140025333.html
Big tech’s water use for data centres stokes tensions in drought-hit regions
https://www.theguardian.com/environment/2025/apr/09/big-tech-datacentres-water
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