Spanberger takes aim at data center secrecy but stops short of a moratorium
Governor Abigail Spanberger of Virginia unveiled a "Data Center Accountability Framework" which includes legislative proposals to increase transparency, tighten environmental regulations, and reallocate energy costs for the data center industry. She also signed an executive order to ban non-disclosure agreements with state agencies. The plan does not include a moratorium on data center development, a point of contention for environmental groups.
Virginia Governor Abigail Spanberger introduced a comprehensive "Data Center Accountability Framework" on Friday, aiming to regulate the state's burgeoning data center industry. The plan, announced at the Virginia State Capitol, focuses on five key pillars: transparency, environmental protection, lowering energy costs, promoting clean energy, and supporting local workers.
Key proposals include banning non-disclosure agreements between state executive branch agencies and data center developers, with a future goal to extend this ban to localities through legislative action. The framework also seeks to eliminate "by-right" local approvals for data centers consuming over 25 megawatts of power, instead requiring conditional use permits. Additionally, it aims to remove data centers from Virginia's fast-track permitting process, which was previously encouraged by former Governor Glenn Youngkin's administration.
Environmental protections are a significant component, with directives for lawmakers to establish standards for energy efficiency, water use, and land impact. The Department of Environmental Quality has already been tasked with identifying "water scarcity areas" where data centers must reduce water consumption. Furthermore, the framework mandates that utilities allocate more energy infrastructure costs to the data center industry. Microsoft, a major tech company, has indicated it might appeal a State Corporation Commission order related to these cost allocations. Regional grid operator PJM has also proposed rules for data centers to cover their power generation needs.
While Spanberger's plan was supported by the Virginia House Democratic Caucus and some environmental groups like the Chesapeake Bay Foundation, Sierra Club, and League of Conservation Voters as a positive initial step, it faced criticism from other organizations such as the Piedmont Environmental Council and Chesapeake Climate Action Network for not including an immediate moratorium on data center development. The Data Center Coalition, an industry lobbying group, stated it is awaiting more details and is prepared to engage with policymakers.