Spanberger proposes by-right approval ban for data centers

Virginia Governor Abigail Spanberger has unveiled a comprehensive data center accountability plan, signing an executive order aimed at overhauling how the industry operates in the state. The key component of the order is the proposal to eliminate by-right approvals for data center developments statewide, a measure intended to be solidified through legislation introduced in the 2027 General Assembly. The executive order also prohibits nondisclosure agreements for data centers for certain state employees, boards, and commissions, promoting greater transparency in development processes. Additionally, it establishes a state AI Task Force to address concerns related to artificial intelligence, such as job displacement, data privacy, and cybersecurity.

The governor's initiative mandates the Virginia Department of Environmental Quality to provide recommendations on environmental factors within 180 days, and state energy officials are tasked with identifying optimal locations for data center development that balance economic benefits with minimized impacts on energy, water, and land use. The plan has drawn varied reactions: the Data Center Coalition expressed support for ensuring responsible development, while groups like Clean Virginia, which has advocated for a pause on data center growth, called the framework a "meaningful step forward." Senate President Pro Tempore Louise Lucas, however, criticized the proposal for not going far enough, particularly for failing to repeal sales tax exemptions for data centers, which she estimates cost the state billions in revenue.