A Virginia state agency has issued a record $2.5 million fine to a data center for exceeding its allowed emissions last year. The Department of Environmental Quality (DEQ) cited Microsoft's facility in Leesburg, Virginia, for surpassing permitted levels of pollutants such as carbon monoxide (CO), volatile organic compounds (VOCs), and particulate matter (PM10 and PM2.5) during a seven-day period in June 2025. This incident occurred after a failure at an electrical substation forced the facility to run 62 emergency engines. As part of a settlement, Microsoft has agreed to invest $2.4 million in an environmental project in Loudoun County, where the data center is located, to monitor air quality in areas with a high concentration of data centers. The DEQ plans to use the funds to install dozens of air quality sensors across regions with the most data centers. Loudoun County, known as "Data Center Alley," is located just outside Washington, D.C., and is home to more than 250 data centers. The county has seen growing public concern about the environmental and health effects of these facilities. In response, the nine-member Loudoun County Board of Supervisors voted 7-1, with one abstention, to pause the approval of new data center applications for one year, starting September 15. This pause is allowed under state law, though the county attorney noted that an outright ban on new data centers would be illegal. While data center developers can still submit proposals, the board will not take any action on them during the pause. The board is also considering stricter standards and guidelines for future data center development. Residents like Greg Pirio of Sterling, who lives near a data center with its own power plant, have long raised concerns about noise, health risks, and declining property values. During a public comment session, Pirio emphasized the need for community involvement in setting new standards to address the environmental and health impacts of data center growth. The board is currently reviewing recommendations for these new standards over the next several months. Supporters of data center expansion argue that these facilities bring significant economic benefits, including an estimated $1.3 billion in local tax revenue, which they say funds public education, parks, and law enforcement. Opponents of the proposed pause, including the Data Center Coalition, warn that such measures could deter investment and harm local businesses that support the data center industry. They argue that data centers are a key driver of economic development and that restrictions could signal that the area is not welcoming to business. The pause will not affect existing data centers or those currently under construction, but it could slow future growth in the region.