New executive order to regulate data centers
Virginia's Governor has signed a new executive order to regulate data centers, requiring operators to fund 100% of transmission line infrastructure. The order is a response to widespread community concerns over environmental impacts, electricity costs, and the reshaping of communities. Portions of the order will be codified by the General Assembly in 2027.
Virginia Governor Spamberger recently signed an executive order establishing a new framework for data center regulation in the state. This order mandates that data center operators fully fund the transmission line infrastructure required to power their facilities, with parts of the order slated for codification by the General Assembly in early 2027.
The Data Center Coalition released a statement expressing a wait-and-see approach, seeking further details on implementation. They also warned that sudden regulatory changes could hinder state economic growth and referenced a study by the Joint Legislative Audit and Review Commission.
Michael Town, Executive Director of the Virginia League of Conservation Voters, praised the governor's action, calling it "long overdue." He highlighted how communities across Virginia, including the Piedmont, Richmond area, Chesapeake, and Suffolk, have voiced alarms about data centers' impact on water usage, electricity bills, noise levels, and community landscapes. Town emphasized that Virginia, as the world's leading data center hub, faces unique pressures, though other states like Texas, Pennsylvania, and New York have also initiated pauses or audits on the industry.
Town stated that public opinion research indicates 70-80% of Americans, and 70-75% of Virginians, support restrictions on the industry due to environmental impacts and community concerns. He stressed that the goal is not to expel the industry, but to ensure it operates sustainably and respectfully within communities, with rules in place to manage both future and existing development.