Design and Construction Report staff writer
Virginia Gov. Abigail Spanberger has unveiled a new framework that would impose additional requirements on data center developers and operators, including stricter environmental standards, greater local oversight and measures intended to limit impacts on electricity costs.
The Data Center Accountability Framework, announced Sept. 18, includes actions through an executive order, state agency directives and proposed legislation for the 2027 General Assembly session.
Spanberger said the framework is intended to give communities more information and a greater role in data center approvals while addressing concerns over electricity demand, water use, land impacts, emissions and grid reliability.
“In the years before I took office, data centers came to Virginia and the Commonwealth did not have a clear or coordinated plan to address their impacts on Virginians — on their electric bills, their water, their land, their air, or their quality of life,” Spanberger said.
The framework would ban non-disclosure agreements for commercial data center projects and eliminate by-right approval for facilities using more than 25 megawatts of power. Those projects would require local approval.
The state also plans to remove future large data centers from its fast-track permitting process and end state subsidies for data centers through its site development programs.
Environmental measures would establish standards for energy efficiency, water use, land impacts and backup power generation. The framework calls for an evaluation of the cumulative impacts of diesel backup generators and requirements for existing and future facilities to transition to cleaner backup power.
It also calls for water-use standards for data centers and expedited state noise regulations for the industry.
The framework includes measures aimed at limiting the costs of data center development for other electricity customers. It would require utilities to allocate a more equitable share of transmission and generation costs to data centers and other large-load customers.
Developers also would face stronger upfront financial requirements intended to discourage speculative projects. The framework calls for costs associated with PJM Interconnection processes related to increased energy demand to be allocated to data centers.
PJM Interconnection operates the regional electric grid and wholesale electricity market serving Virginia and other states in the eastern United States.
The framework also calls for data centers to meet standards intended to prevent sudden changes in electricity demand from affecting grid reliability. It would limit the amount of electricity data centers can generate through on-site natural gas or behind-the-meter gas generation.
At the same time, the state plans to encourage data centers to use clean energy, including by making it easier for facilities to bring their own power and by prioritizing grid access for projects that make clean energy investments.
Workforce provisions would encourage local hiring and workforce training goals and prioritize Virginia businesses in procurement and contracting. The framework also calls for responsible contractor standards and apprenticeship programs for new developments.
Spanberger also signed Executive Order 22, which puts several parts of the framework into effect.
The order prohibits executive branch agencies and other entities under the governor’s supervision from entering into or requiring non-disclosure agreements for data center projects. It also directs the creation of a Data Center Planning and Community Engagement Toolkit for local governments and communities.
Other directives include expediting data center noise regulations, reviewing diesel and other backup-generation operations, developing approaches to direct data center investments toward local energy projects and establishing practices to support local hiring and workforce opportunities.
The executive order also creates a Virginia Artificial Intelligence Task Force to examine issues associated with the development of artificial intelligence, including workforce displacement, data privacy and cybersecurity.
“My administration is also taking action to respond to the risks being posed to Virginians by the rapid development of AI technology,” Spanberger said.
