Virginia Governor Orders Framework for Regulating Data Centers, Establishes AI Task Force
Virginia Gov. Abigail Spanberger issued an executive order establishing a new "accountability framework" for data centers, aiming to increase transparency and address energy and environmental impacts. The order bans state agencies from using NDAs, eliminates "by-right" approvals for large projects, and directs state agencies to develop noise regulations and conduct environmental reviews. This framework also seeks to protect residents from increased energy costs and has sparked mixed reactions from conservation groups and the Chamber of Commerce.
Virginia Governor Abigail Spanberger signed Executive Order 22, creating a "data center accountability framework" aimed at increasing transparency and addressing the industry's impacts. Touted as the most comprehensive in the nation, the order prohibits state agencies from using nondisclosure agreements and ends "by-right" approvals for data centers consuming over 25 megawatts, mandating public hearings.
The framework directs the Virginia Department of Environmental Quality (DEQ) to expedite noise regulations, conduct cumulative impact reviews of backup generators, and address emissions and water scarcity. Virginia Energy is tasked with improving grid reliability and ensuring data centers do not inflate household energy costs. The order also encourages local hiring and Virginia business prioritization.
Governor Spanberger emphasized the urgent need for action due to data centers' impacts on Virginians' electric bills, water, land, air, and quality of life. The announcement follows a legislative debate over a sales tax exemption for data centers, which was retained in the budget but offset by a new electricity tax.
Conservation groups like the Virginia League of Conservation Voters welcomed the order, while the Virginia Chamber of Commerce expressed caution, highlighting the industry's economic contributions. The order's impact is particularly anticipated in Fairfax County, where residents like the Save Bren Mar Coalition are fighting specific projects, hoping the new framework will influence pending approvals like the Edsall Data Center Substation 2232.