The data-center brakes are coming from city hall — and now from Richmond's budget
In a single week, three more local governments moved to slam the door on data centers, and Virginia lawmakers — who can't ban them — moved instead to tax them.
What changed (week of June 15–20, 2026): In a single week, three more local governments moved to slam the door on data centers, and Virginia lawmakers — who can't ban them — moved instead to tax them. Read together, the two stories are the same story: the cheap, frictionless siting environment that defined the last data-center build-out is closing, and the friction is now showing up in both zoning codes and state budgets.
The moratorium wave reached three new places this week
- Versailles, Kentucky (Woodford County) enacted a moratorium on data centers running "through 2026." (lex18.com, via SitePath's news index, source-quality 0.85, published 2026-06-18.)
- Superior, Wisconsin passed a data-center moratorium, joining what its coverage calls a "growing number of Wisconsin communities" doing the same. (wpr.org, 0.70, 2026-06-17.)
- Winnebago County, Wisconsin is pursuing a 12-month data-center moratorium. (duke.fm, 0.85, 2026-06-17.)
- A Kentucky roundup confirms the pattern is statewide there: "Some Kentucky counties and cities are hitting pause on data centers." (highlandcountypress.com, 0.70, 2026-06-18.)
None of these are in SitePath's core PJM/Mid-Atlantic footprint, but the trend is exactly what our data-center risk layer exists to catch. For context, SitePath's SitePath's data-center dataset already tracks 22 active data-center moratoria nationally (plus 10 township-level moratoria) as of the last feed snapshot — this week adds at least two newly enacted local moratoria (Versailles, Superior) and one advancing (Winnebago Co.) that are not yet reflected in the structured feed.
Virginia can't ban — so it's reaching for the tax code
Virginia is the most important data-center market in the country, and its localities operate under a different constraint than Kentucky's or Wisconsin's. Under HB 711 / SB 347 — the statewide solar/BESS siting-preemption law already in SitePath's SitePath's regulatory tracker (enacted 2026-04-13, effective July 1, 2026) — the state has shown it will preempt outright local bans on favored infrastructure. So the pressure valve in Virginia is fiscal, not prohibitive:
- The Virginia Senate's budget proposal keeps the data-center sales-tax exemption but adds a new tax on the industry. (wydaily.com, 0.85, 2026-06-19.) That is a notable pivot: preserve the incentive that anchors the cluster, but start extracting revenue from it.
- A separate Senate impact-fee proposal aimed at data centers "meets pushback" as budget negotiations continue. (29news.com, 0.85, 2026-06-18.)
- Meanwhile, energy advocates are urging lawmakers to slow the timeline on the Dominion–NextEra merger (29news.com, 0.85, 2026-06-18) — a utility-market move that bears directly on who controls generation and interconnection in the territory where most of these data centers want to plug in.
There is also a solar-side signal in the same week: Virginia lawmakers, with Rep. Spanberger, celebrated the signing of an agrivoltaics bill at a Loudoun County farm event (rappnews.com, 0.70, and wtop.com, 0.85, both 2026-06-18) — a state nudge toward co-locating solar with active farmland, the politically durable middle path between farmland-preservation opposition and clean-energy targets.
Why it matters for siting
The combined message to developers: approval risk is migrating upstream. A year ago the binding constraint was local zoning. Now it is (1) a thickening patchwork of local moratoria in secondary markets, and (2) in the premier market, a state fiscal regime that keeps you in but raises your cost of staying. For SitePath's grading model, that argues for treating "no moratorium on the books" as necessary-but-not-sufficient — a county can stay open to data centers while the state quietly reprices the whole asset class. The Dominion–NextEra item is the wildcard: a merger that reshapes generation control in PJM's biggest load zone would ripple through interconnection queues and co-location economics far beyond any single county vote.
Published from the SitePath editorial desk on June 22, 2026. Claims are traced to primary documents and to records already in the SitePath dataset; source links appear inline. Material the source review could not confirm has been withheld from this page rather than published with a caveat — see methodology for how SitePath sources and scores what it publishes.