Spanberger would end by-right data centers. The one at Alexandria's edge already is one.
Governor Abigail Spanberger introduced a data center accountability framework and signed an executive order to immediately implement some measures, including banning non-disclosure agreements. The framework aims to end by-right data center approvals for projects over 25 megawatts and proposes legislative changes. This initiative does not affect Starwood Capital Group's Plaza 500 project in Fairfax County, which was approved by right and faces strong local opposition regarding its proposed Dominion Energy substation.
Virginia Governor Abigail Spanberger unveiled a comprehensive data center accountability framework and signed Executive Order 22, an immediate action to enforce parts of the plan. The framework, described as the most aggressive in the country, aims to eliminate by-right approval for data centers consuming over 25 megawatts, require local approval for such projects, mandate community benefits agreements, and end state subsidies for data centers.
Executive Order 22 prohibits executive branch agencies from using non-disclosure agreements for data center projects and directs the state to develop a community engagement toolkit, expedite noise regulations, and review backup generation. Future legislative components, to be introduced in the 2027 General Assembly session, include requiring utilities to allocate more transmission costs to large power users, limiting on-site natural gas generation by data centers, and setting standards to prevent grid destabilization from demand swings. These measures, however, will not retroactively affect projects already approved.
One such project is Starwood Capital Group's Plaza 500 in Fairfax County, located near Alexandria's western border and the Bren Mar neighborhood. This 34-acre data center campus, permitted under existing light industrial zoning, was approved by right and did not require a public vote for its construction. The project's proposed Dominion Energy substation, designed to supply 176 megawatts, is currently the subject of an upcoming public hearing before the Fairfax County Planning Commission, postponed to December 2nd due to questions about noise, lighting, and electromagnetic fields.
The project faces significant opposition from the Save Bren Mar Coalition, Alexandria's City Council, Mason District Supervisor Andres Jimenez, and U.S. Rep. Don Beyer, all of whom have called for the denial of the substation application. Opponents cite concerns over heavy industrial use near residential areas, potential noise impacts, and increased electricity costs for residents. While Starwood Capital Group defends the project as a less obtrusive redevelopment, the broader framework reflects an evolving state-level approach to regulating data center expansion.