An Act to direct the Department of Energy to make certain findings and recommendations and to convene a work group to provide expertise and feedback on the use of waste heat from data centers; report.
HB323 directs the Virginia Department of Energy to study and promote the beneficial use of waste heat generated by data centers. The bill requires the Department to identify opportunities for using that heat, improve communication between data centers and potential heat users, review best practices from other jurisdictions, and develop recommendations for accelerating waste-heat reuse in the Commonwealth. The study is broad in scope and includes residential, commercial, public buildings, district heating systems, and industries that use low-temperature heat.
The bill also requires the Department to convene a work group with representatives from the Virginia Economic Development Partnership Authority, the data center industry, local governments, gas and electric utilities, relevant state agencies, potential heat users, and other stakeholders. That group is intended to provide expertise, assistance, and feedback as the Department develops findings, legislative proposals, and policy recommendations. The Department must report its findings and recommendations to the House Committee on Labor and Commerce and the Senate Committee on Commerce and Labor by September 1, 2026.
HB323 does not directly amend existing regulatory standards or impose new mandates on data centers, utilities, or local governments. Instead, it creates a state-led planning and coordination process within the Department of Energy to evaluate how waste heat from data centers can be captured and reused, and to identify infrastructure and program costs associated with doing so. Its practical effect is to place data center waste-heat reuse on the state policy agenda and potentially lay the groundwork for future legislation, incentives, or infrastructure programs affecting energy policy, economic development, and building/heating systems.
The available record suggests a generally constructive and exploratory sentiment around the bill. Because the measure is a study-and-report bill rather than a regulatory mandate, it appears designed to gather information and build consensus among industry, utilities, and public stakeholders. No committee transcript or vote data is provided, so there is no evidence in the record of formal opposition or recorded controversy, but the inclusion of multiple stakeholder groups indicates an effort to balance competing interests and ensure the recommendations are practical.
The main potential points of contention are likely to involve the costs and feasibility of building the infrastructure needed to move waste heat from data centers to end users, as well as the logistics of coordinating among private data centers, utilities, local governments, and public buildings. There may also be differing views on how much responsibility should fall on the state versus the private sector, and whether waste-heat reuse should be encouraged through policy, incentives, or future mandates. However, no specific objections or opposing arguments are documented in the provided materials.