Virginia cracks down on data centers

Virginia Governor Abigail Spanberger signed Executive Order 22, establishing the "Virginia Data Center Accountability Framework," which implements new regulations and standards for AI data centers across the state. Governor Spanberger declared it the nation's toughest plan to hold data centers accountable, emphasizing transparency, energy costs, clean energy, environmental impact, and safety. The framework prohibits non-disclosure agreements, requires local approval for most large projects, and removes state subsidies and fast-track permits as incentives. Conversely, projects utilizing clean energy will receive faster permits and priority access to the electrical grid, while natural gas usage is limited.

Separately, in Loudoun County, supervisors advanced a motion for a 12-month pause on new data center developments, with a final vote scheduled for next month. Loudoun County, known as a major data center hub, is home to approximately 250 facilities, with more planned. Chris Miller of the Piedmont Environmental Council called for a statewide moratorium, citing concerns about power demand, transmission infrastructure, and potential impacts on water, air quality, and communities. Virginia House Speaker Don Scott supported the Governor's order, calling it a "moratorium on bad actors in this industry." The Governor also launched an AI Task Force focused on safe and responsible AI advancement, asserting that the state previously lacked a coordinated plan to address data centers' impacts on residents' electric bills, water, land, air, and quality of life. The new framework aims to ensure data centers "pay their fair share" through upfront financial investments and a more even distribution of grid costs.