Gov. Spanberger proposes new data center rules for Virginia; reaction is mixed
Virginia Governor Abigail Spanberger unveiled a new "Data Center Accountability Framework" to address the rapid expansion of data centers, focusing on transparency, environmental protections, and energy costs. The plan includes an executive order banning state agencies from NDAs for data center projects and fast-tracking noise regulations, but has received mixed reactions for not including a moratorium or ending tax breaks. Many aspects of the framework will require legislative action.
Virginia Governor Abigail Spanberger introduced a comprehensive "Data Center Accountability Framework" in Richmond, Virginia, positioning it as the nation's most aggressive effort to regulate data center development. The initiative aims to enhance transparency, strengthen environmental safeguards, reduce energy costs, promote clean energy, and invest in the state's workforce, directly responding to public concerns about the industry's rapid expansion and its impact on utility bills, quality of life, and the environment.
Key components of the framework include Executive Order 22, signed by Governor Spanberger, which immediately prohibits state agencies from entering into non-disclosure agreements for data center projects and expedites the development of data center noise regulations. The broader framework proposes eliminating by-right approval for data centers exceeding 25 megawatts, ending state subsidies for such facilities in development programs, and removing them from fast-track permitting processes. It also calls for establishing stringent standards for energy efficiency, water use, land impacts, and a more equitable allocation of electric transmission and generation costs to large data center customers.
However, the proposals have drawn mixed reactions. While the Data Center Coalition expressed alignment with the Governor's goals, it cautioned against abrupt policy changes without meaningful stakeholder engagement. State legislators, including Sen. Glen Sturtevant (R-Chesterfield) and Sen. Louise Lucas (D-Portsmouth), criticized the framework for not including a statewide moratorium on new data center development or addressing the controversial sales tax exemption for the industry. Governor Spanberger defended the plan, highlighting its nation-leading provisions such as limiting behind-the-meter gas generation and prioritizing grid access for facilities investing in zero-carbon energy.