Gov. Abigail Spanberger on Friday unveiled what she called the most aggressive framework for data center accountability in the country and announced Virginia’s first artificial intelligence task force.
Reaction runs from ‘too much’ to ‘not enough’
We have more comments from legislators and various groups interested in data center policy here.
The framework falls short of a moratorium on the development of data centers in the commonwealth and does not include an end to data center tax exemptions.
“A moratorium — a pause on all development and new applications — should be the first step so we can fully address the many impacts on the state and residents,” said the Piedmont Environmental Council in a statement Friday.
Spanberger’s effort comes by way of Executive Order 22, coupled with a list of legislative priorities that the governor laid out ahead of the 2027 General Assembly session.
Data centers are the biggest issue in Virginia, the so-called “data center capital of the world,” amid a midterm election year. Proponents of the centers see the local tax revenue they bring in as a way to pay for critical infrastructure, while opponents have sounded the alarm against the centers’ use of critical resources such as water and electricity, as well as the danger posed by rapidly expanding AI.
“This is an incredibly important conversation, because right now, so many of our fellow Virginians are rightfully concerned about the impact data centers are having on our energy bills, rightfully concerned about how many of these projects have been secretive — devoid of any real transparency, rightfully concerned about the long-term impact these projects have on clean air, clean water, and they’re rightfully concerned about how rapidly this industry has grown through the rise of artificial intelligence,” Spanberger said during a press conference in Richmond on Friday.
She added that those concerns were the driving force behind the creation of the executive order.
- A ban on nondisclosure agreements among executive branch agencies, departments, commissions, authorities and other public employees regarding data center projects;
- The creation of a community engagement “toolkit” for localities to use when considering data center projects;
- The faster development of data center noise regulations;
- A review of diesel and other backup energy generation options for data centers;
- An effort to improve energy affordability while strengthening Virginia’s energy grid;
- The development of “best practices” for jobs and local workforce opportunities; and
- The creation of an AI task force.
The goal of the AI task force will be to address the risks posed by the rapid development of artificial intelligences. That includes risks to data privacy, cybersecurity and potential workforce displacement, Spanberger’s office said.
Nondisclosure agreements, which keep details of negotiations and developments secret, have been signed by local government officials as part of some data center deals. Spanberger’s ban on these agreements would apply only to state entities and employees, not to local officials, but the governor’s framework alludes to an effort to ban the agreements for commercial data center projects statewide through legislation.
Other legislative priorities outlined by the governor include limiting by-right approval and requiring local approval of any data center that uses more than 25 megawatts of power. By-right approval refers to situations where a project meets existing land-use requirements and does not have to go through a local government’s public hearing process.
Efforts to lower energy costs, protect against energy grid destabilization, enforce environmental protections and bolster Virginia’s workforce are among the governor’s legislative priorities as well.
Some call it a good first step, some say it does not go far enough, others await more info
Reactions to the executive order were mixed on Friday. Some lauded the effort as a good first step while others — including lawmakers in Spanberger’s own party — said that it does not go far enough to curtail the impacts of data centers.
“The governor is finally feeling the heat but still ignoring the fire. Her proposal does not end the $2 billion in sales tax exemptions provided to data centers,” state Senate President Pro Tempore Louise Lucas, D-Portsmouth, said in a statement.
Lucas was a proponent of ending tax exemptions for data centers eight years earlier than their current expiration, a sticking point in budget negotiations earlier this year.
The Piedmont Environmental Council said that the governor’s plan had some “positive elements” but that it does “not address the immediacy of this crisis or bring adequate oversight and accountability.”
“It largely addresses standards on new data centers and does not deal with what’s already built and in the pipeline, along with the ongoing impacts piling up in communities now,” the council said.
House of Delegates Minority Leader Terry Kilgore, R-Scott County, called Spanberger’s effort “internally contradictory” and questioned whether her plan is viable.
“It ‘encourages’ data centers to bring their own power, while proposing to sharply limit on-site natural gas and further restrict backup generation, even as those same facilities are expected to provide grid support and reduce their demand when the system is under stress,” he said in a statement provided by his office via text.
Nicole Riley, spokesperson for the Data Center Coalition, said that the organization and its members share the governor’s goal of responsible data center development while protecting Virginia residents, but that more details regarding the plan are needed.
“We await further details on how these policy goals will be implemented by Governor Spanberger and the General Assembly, and are ready to engage with policymakers to ensure workable, balanced policies that keep Virginia competitive and honor prior commitments by the Commonwealth and its localities,” Riley said in an emailed statement.
Clean Virginia Executive Director Brennan Gilmore called Spanberger’s effort a “meaningful step forward.
“The real test will come in the months ahead as the governor works with the legislature to flesh out details on who pays, who bears risk, and what conditions must be met for continued data center development,” he said in an emailed statement. “Clean Virginia supports a pause on further data center development while these details are worked out and encourages Governor Spanberger to do the same.”
Staff writer Matt Busse contributed information to this report.
