Spanberger rolls out Data Center Accountability Framework: ‘Step in the right direction’
Virginia Governor Abigail Spanberger has rolled out a new Data Center Accountability Framework via an executive order, aiming to address the environmental, water, and electricity impacts of data centers across the state. The framework seeks to empower localities to better regulate data center developments. The initiative has received mixed reactions from state legislators.
Virginia Governor Abigail Spanberger has introduced a new Data Center Accountability Framework, largely through an executive order, aimed at setting higher standards for the data center industry within the Commonwealth. The framework is designed to address the impacts of data centers on Virginians' electric bills, water resources, land, air, and overall quality of life.
Key provisions of the framework include empowering localities to negotiate more effectively by banning non-disclosure agreements (NDAs) that previously limited public discourse. Governor Spanberger stated that Virginia should lead the nation in regulating the industry and expressed confidence that the new framework achieves this goal, giving local governments a stronger position against less transparent deals.
However, the framework has met with mixed reactions. State Senator Louise Lucas criticized the proposal for not addressing the $2 billion in sales tax exemptions provided to data centers, a point of contention between her and the Governor. Lucas indicated that the political battle over data centers within the Democratic Party is far from over and expressed her intent to pursue more substantial legislation in the 2027 session.
In contrast, House of Delegates Speaker Don Scott praised the framework as a "moratorium on bad actors in this industry." The House Democratic Caucus offered more reserved support, calling it "a step in the right direction" and expressing a desire to continue working with Governor Spanberger on thoughtful legislation in the future.