Virginia Governor Spanberger Tightens Data Center Regulations

Governor Abigail Spanberger signed Executive Order 22 on September 18, 2026, establishing the Data Center Accountability Framework to tighten permitting and environmental controls on Virginia's data center industry. The framework bans non-disclosure agreements for commercial projects and eliminates by-right approval for facilities using over 25 megawatts of power, shifting approval authority to local permits. It also introduces stricter standards for water use, noise, and emissions, while requiring utilities to allocate energy transmission costs more equitably to prevent residents from facing higher electric bills.

As part of the order, Spanberger created a Virginia AI Task Force to evaluate risks related to cybersecurity, data privacy, and workforce displacement. While some measures take effect immediately, other portions of the framework require approval from the Virginia General Assembly during the 2027 legislative session. Spanberger stated that Virginia should lead the nation in setting high standards, noting that some companies may leave the state if they cannot meet them.

The initiative faced mixed reactions. Republican State Senator Ryan McDougle and Senator Glen Sturtevant criticized the timing or called for a full moratorium on new approvals. Democratic Senate President Louise Lucas criticized the governor for maintaining an estimated $2 billion tax break for the industry. These regional efforts mirror a broader trend of state-level crackdowns in New York, Texas, and California, coinciding with the U.S. House of Representatives passing the Ratepayers Protection Act to prevent consumers from paying for data center infrastructure upgrades.