Bill > HB323

This bill directs the Virginia Department of Energy to take the lead in promoting the use of waste heat generated by data centers, which are facilities that house large amounts of computer servers. The Department will identify ways to reuse this heat for beneficial purposes, such as heating buildings or supporting industries. To achieve this, the Department will facilitate communication between data centers and potential users of their waste heat, research successful waste heat utilization strategies from elsewhere, and develop recommendations for increasing its use in Virginia, including an estimate of the costs for necessary infrastructure and programs. A work group composed of various stakeholders, including representatives from the data center industry, local governments, utilities, and potential heat users, will be formed to offer expertise and feedback. Finally, the Department is required to submit a report by September 1, 2026, detailing its progress, findings, and any proposed legislative or policy changes to encourage the use of data center waste heat.