Plan would eliminate automatic local approval for any data center using more than 25 megawatts of power
WASHINGTON, Sept. 23, 2026 - Virginia’s governor is taking steps to curb data center growth in the commonwealth, unveiling new transparency, environmental and cost-allocation rules for the industry.
According to Gov. Abigail Spanberger, D, her new executive order establishes stronger state oversight of data center development. "Starting today, this industry won't have carte blanche to play by their own rules in Virginia," she said Sept. 18 at a press conference in Richmond
Spanberger announced a sweeping “Data Center Accountability Framework” aimed at tightening transparency, environmental and energy rules for new data centers, while stopping short of the statewide moratorium that some lawmakers and advocacy groups have demanded.
“We are at an inflection point with this technology,” Spanberger said. “The industry has been rapidly expanding in the last few years without a coordinated or clear plan to address the impacts on Virginians - on their electric bills, their water, their land, their air, or our quality of life.”
The plan, unveiled Sept. 18, pairs immediate executive actions with a legislative agenda for the 2027 General Assembly. Through Executive Order 22, Spanberger banned state executive-branch agencies from entering into or requiring non-disclosure agreements for data center projects, directed agencies to develop stricter standards on noise, emissions and water use, and ordered a review of diesel and other backup-generation operations at data centers. The order also creates an AI task force to examine workforce, privacy and cybersecurity risks from rapid AI deployment.
Under the broader framework, Spanberger proposes eliminating automatic local approval for any data center using more than 25 megawatts of power, requiring local government approval instead, and removing large future data centers from Virginia’s fast-track permitting process.
She also wants to end state subsidies for data centers in site development programs, empower communities to negotiate stronger agreements, and require utilities to allocate a more equitable share of transmission and generation costs to large-load customers like data centers.
The environmental provisions include stringent standards for energy efficiency, water use and land impacts, plus incentives for data centers to develop renewable solar and wind backup generation instead of relying on natural gas or diesel. The framework also calls for limits on on-site natural gas generation and stronger upfront financial commitments from developers to deter speculative projects that tie up land and grid capacity.
The reaction to these proposals was mixed. Supporters praised the move as the “most comprehensive and aggressive” data center accountability effort in the country, while critics noted the absence of a moratorium, a cap on new data center electric load, or changes to existing tax exemptions. Spanberger said the new standards will apply primarily to future projects, though she expects existing facilities to be brought into compliance over time.
The framework sets up a contentious 2027 legislative battle over how far Virginia will go in curbing data center growth, with Spanberger betting that tighter transparency, environmental and cost-allocation rules can address community concerns without choking off an industry that has become central to the state’s economy and the AI boom.