Committee backs study and encouragement of data‑center heat reuse to benefit nearby facilities

Virginia House Subcommittee 3 · January 28, 2026

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Summary

A substitute for HB323 directs the Department of Energy to lead an effort to evaluate and encourage reuse of waste heat from data centers for district heating or industrial use; supporters pointed to international examples and potential local opportunities to heat schools or factories.

Chair (sponsoring delegate) described HB323 as an opportunity to capture waste heat from data centers and put it to productive use in nearby schools, factories and other facilities. "The heat from a data center...can be used to heat the factory that might be across the street or the school that might be down the street," the sponsor said, urging policy encouragement and state coordination.

The Data Center Coalition and Chesapeake Climate Action Network told the subcommittee they support studying opportunities and coordinating infrastructure planning; Nicole Riley of the Data Center Coalition noted that infrastructure and local coordination are the primary obstacles in Virginia.

The subcommittee adopted a substitute and moved the bill forward with broad support; members said the measure aims to identify opportunities and possible incentives rather than mandate individual projects.

What’s next: HB323, as substituted, is reported and will proceed to full committee for additional consideration and any potential funding or implementation language.