This report is created pursuant to Chapter 591 of the 2026 Virginia Acts of Assembly. The act directed the Virginia Department of Energy (Department) to evaluate the feasibility of the development of data center waste heat technologies in the Commonwealth. The Act directed the Department to address several issues: (1) Identification of opportunities for beneficial use of waste heat from data centers; (2) Determination of appropriate channels and tools for information sharing across various stakeholder groups (data centers, end-users, localities) to help with evaluation of practical applications of data center waste heat use; (3) Provide recommendations to accelerate the use of waste heat from data centers addressing benefits and challenges, as well as an assessment of estimated costs to develop infrastructure. Additionally, the Department was directed to host a workgroup with involvement from relevant stakeholders to help inform the report through expertise, assistance, and feedback on the Department’s efforts to accelerate data center waste heat use in the Commonwealth.

In executing this evaluation of policy options, the agency conducted independent research and met with stakeholders, including (1) Virginia Economic Development Partnership Authority, (2) the Data Center Industry, (3) Local Governments, (4) Gas & Electric Utilities, (5) Relevant State Agencies, (6) Potential End Users, and (7) other relevant stakeholders. The Department hosted three stakeholder sessions and received feedback from stakeholders on the draft report. Stakeholder resources and feedback are present throughout this final report.