Virginia Gov. Spanberger announces new data center rules for Virginia

RICHMOND, Va. — Virginia Gov. Abigail Spanberger unveiled a sweeping new "Data Center Accountability Framework" Friday, calling it the most comprehensive and aggressive data center accountability effort in the country.

Spanberger said the framework focuses on increasing transparency, strengthening environmental protections, lowering energy costs, advancing clean energy, and investing in Virginia's workforce.

“Virginia should be leading the nation in setting the highest standards for this industry, and today we are doing just that," Spanberger said at a Friday morning press conference in Richmond.

During the press conference, Spanberger signed Executive Order 22, setting the framework into motion.

“This is not a temporary fix," Spanberger said. "We are not scrambling to figure out what to do tomorrow. We are creating a new way forward for how this industry does business in the Commonwealth."

Increasing transparency

Executive Order 22 bans executive branch agencies, departments, boards, commissions, authorities, and employees from entering into or requiring non-disclosure agreements (NDAs) for data center projects.

More broadly, the framework calls for eliminating by-right approval and requiring local approval of any data center using over 25 megawatts of power, empowering communities with tools to negotiate stronger agreements, ending state subsidies for data centers in Virginia's site development programs, and removing future large data centers from the state's fast-track permitting process.

“If you don’t want to meet these high standards, Virginia may not be the place for you," Spanberger said.

Environmental protections

The framework directs the state to establish standards for data center energy efficiency, water use, and land impacts that Spanberger says will be the strongest in the nation.

Executive Order 22 also expedites the development of data center noise regulations and directs review of diesel and other backup-generation operations associated with data centers. The broader framework calls for evaluating the cumulative impacts of diesel backup generators and requiring existing and future facilities to move to cleaner backup power, as well as setting clear water-use standards backed by stronger state agency enforcement.

Energy costs and clean energy

The framework requires all utilities to allocate a more equitable share of electric transmission and generation costs to data centers and other large load customers. It also calls for ensuring that costs from PJM Interconnection processes to address rising energy demand driven by data centers are allocated to those data centers.

The framework also aims to protect grid reliability by requiring data centers to meet standards that prevent sudden changes in electricity demand from destabilizing the grid, and limits the amount of electricity data centers can generate from on-site or behind-the-meter natural gas generation.

It prioritizes grid access for facilities that invest in clean energy and aims to make it easier for data centers to bring their own clean power by reforming utility charges that currently discourage clean energy investment.

Executive Order 22 also directs the state to work toward directing data center investments in local energy projects that improve affordability for Virginians and strengthen the grid.

“Virginia families and small businesses should not foot the bill for the data center industry," Spanberger said.

The framework also requires stronger upfront financial commitments from developers.

Virginia workers

The framework prioritizes local hiring. It also prioritizes Virginia businesses in procurement and contracting, supports strong labor practices through responsible contractor standards and apprenticeship programs, and supports project labor agreements where possible.

Executive Order 22 directs the state to develop best practices for prioritizing the creation of quality jobs and advancing local workforce opportunities.

AI task force

Executive Order 22 also creates Virginia's new Artificial Intelligence Task Force. The task force will focus on addressing risks posed by the rapid development of artificial intelligence, including workforce displacement, data privacy, and cybersecurity. Spanberger said the task force comes as the federal government has failed to act on those concerns.

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