Virginia Gov. Spanberger Unveils Data Center Framework

Virginia Governor Abigail Spanberger introduced what she describes as the "most aggressive data center accountability framework" in the country. This new statewide framework proposes significant changes to current regulations, particularly concerning energy efficiency, water usage, environmental impact, and local oversight for data center developments. Key elements of the plan include setting higher energy efficiency standards, requiring a move to cleaner alternatives for existing generators, and limiting the use of gas for power generation.

The Governor's plan also includes a call to pause data center development, similar to actions taken by some local jurisdictions, and aims to end a controversial sales tax exemption for wealthy corporations in the industry. Additionally, it features an executive order banning state entities from entering non-disclosure agreements regarding projects and fast-tracking efforts to help localities negotiate better terms. Spanberger also highlighted initiatives to equitably allocate electricity and generation costs to data center projects and improve grid access for zero-carbon energy.

While Governor Spanberger emphasized that the framework promotes clean energy, benefits communities, reduces pollution, and increases local engagement, the data center industry has voiced strong concerns. A statement from the industry suggested that while it shares the Governor's goals, the framework, without meaningful stakeholder engagement, could prove unworkable and jeopardize jobs and economic activity. The Governor also created Virginia's Artificial Intelligence Task Force to address issues posed by AI development.