Governor Spanberger Unveils Nation’s Most Comprehensive & Aggressive Data Center Accountability Standards, Signs Executive Order to Immediately Put Into Action

Through the Governor's Executive Order 22, immediate directives to state agencies, and proposed legislation for the 2027 General Assembly session, the Framework will build on the Governor's previous work and take action on the following priorities:

Increase Transparency and End the Secrecy

• Ban non-disclosure agreements for commercial data center projects
• Strengthen local control by eliminating by-right approval and requiring local approval of any data center using more than 25 megawatts of power
• Empower communities with tools to negotiate stronger, community-centered agreements
• End state subsidies for data centers in Virginia's site development programs
• Remove future large data centers from Virginia's fast-track permitting process

Enforce the Nation's Strongest Environmental Protections

• Establish strong, transparent, and nation-leading standards for data center energy efficiency, water use, land impacts, and backup generation
• Evaluate cumulative impacts of diesel backup generators and require existing and future facilities to move to cleaner backup power
• Set clear water-use standards for these facilities to lower overall water consumption and improve efficiency of water usage backed by stronger state agency enforcement against violations
• Expedite the new state noise regulations for data centers

Lower Energy Costs for Virginians

• Protect ratepayers by requiring all utilities to allocate a more equitable share of electric transmission and generation costs to data centers and other large load customers
• Prevent speculative projects that tie up land, resources, and energy infrastructure by requiring stronger upfront financial commitments from developers
• Ensure that costs from PJM Interconnection processes to address rising energy demand driven by data centers are allocated to those data centers

Bolster our Clean Energy Economy & Grid Reliability

• Protect grid reliability by requiring data centers to meet standards that prevent sudden changes in their electricity demand from destabilizing the grid
• Limit the amount of electricity data centers can generate from on-site natural gas or behind-the-meter gas generation
• Accelerate clean energy deployment by prioritizing grid access for facilities that invest in clean energy, further reduce backup generator emissions, and further limit on-site natural gas generation
• Make it easier for data centers to bring their own clean power, including by reforming utility charges that discourage investment in clean energy

Deliver a Better Deal for Virginia Workers

• Prioritize local hiring and encourage localities to set hiring and workforce training goals for their communities
• Prioritize Virginia businesses in procurement and contracting
• Support strong labor practices through responsible contractor standards and apprenticeship programs for new developments
• Empower Virginia workers by supporting project labor agreements where possible

Click here to read Virginia's Data Center Accountability Framework.

Governor Spanberger today put many of these directives into action by signing Executive Order 22, including:

• Banning executive branch agencies, departments, boards, commissions, authorities, and any other employees under the Governor's supervision from entering into or requiring non-disclosure agreements for data center projects
• Creating an initial Data Center Planning and Community Engagement Toolkit for local governments and communities to help localities get a better deal
• Expediting the development of data center noise regulations
• Directing a thorough review of diesel and other backup-generation operations associated with data centers
• Working to direct data center investments in local energy projects that improve energy affordability for Virginians and strengthen Virginia's grid
• Developing best practices for prioritizing the creation of quality jobs and advancing local workforce opportunities

Virginia's Artificial Intelligence Task Force, created by Executive Order 22, will be focused on addressing risks posed by the rapid 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. Today's Executive Order will create a new AI Task Force to address several of the top concerns I've heard across the Commonwealth," said Governor Abigail Spanberger. "With the Trump Administration failing to listen to the growing concerns of Virginians, we are going to do everything in our power to make sure that the technology around Artificial Intelligence is developed safely and responsibly."

Click here to read the full text of Governor Spanberger's Executive Order 22.

Heading into the 2027 legislative session, the Governor looks forward to working with the General Assembly to write these standards permanently into Virginia law and implement further guardrails outlined in the Framework - making sure that Virginia will continue to lead the way in data center accountability.

"Today's plan shows that the Governor takes the data center issue seriously, and we in the Senate do too," said Senator Lamont Bagby. "We look forward to working with the Governor on the legislation this plan calls for, because we need strong action that holds the industry accountable."

"As the data center capital of the world, Virginia has reached a point where future growth must be matched by clear standards of accountability, transparency and responsibility, and the Governor's framework does just that," said Senator Lashrecse Aird. "With an emphasis on protecting ratepayers, and natural resources, while strengthening local oversight to ensure communities see meaningful benefits from development, this framework is a critical first step. I look forward to working to translate these principles into durable, enforceable policy as we approach the 2027 legislative session."

"For years, I have worked to bring transparency to this industry, including its water usage, energy consumption, and impacts on our communities. This is especially important to my constituents in Loudoun, who live amongst the largest concentration of data centers in the world," said Senator Kannan Srinivasan. "As Virginia leads the nation in data center growth, it must also continue to lead on accountability. I look forward to working with Governor Spanberger to pass legislation in 2027 that holds this industry accountable."

"No community should have to compromise the health of its water system, the strength of its energy infrastructure, or the quality of its environment because of a data center," said Senator David Marsden. "We must ensure that economic growth does not come at the expense of Virginia's natural resources, and that data center development is responsible, sustainable, and protective of the air, water, and land that our communities depend on. I look forward to leading the Agriculture, Conservation, and Natural Resources Committee as we work together to develop data center policies that reflect the needs of districts and communities across the Commonwealth."

"I am grateful to Governor Spanberger for taking decisive action to protect Virginia families and ratepayers, our environment, and the stability of our energy grid," said Senator Barbara Favola. "Given the warning signs surrounding the rapid growth of artificial intelligence, I am eager to work with the newly established AI Task Force to safeguard Virginians' privacy, protect jobs, and safeguard our national security. I look forward to working with the Governor and my colleagues in the General Assembly on these shared priorities during the upcoming legislative session."

"Data centers are already having an impact on our communities - our water, our energy systems, and our environment - and we can't afford to wait until those impacts become harder to address," said Senator Schuyler VanValkenburg. "We need to make sure Virginia has the tools to manage this growth responsibly and shield ratepayers - including giving local communities more power over new development. Thank you, Governor Spanberger, for your executive order and this nation-leading framework to protect families, our environment, and the reliability of our energy system. The General Assembly must get to work next session to continue to deliver on these priorities."

"I applaud the Governor for taking the bold step to redefine Virginia's approach to data centers and address the significant impact they have had on our environment and communities across Virginia," said Senator Jeremy McPike. "A new approach is necessary to put Virginians and our neighborhoods first."

"Our communities deserve to be heard and they deserve a seat at the table as we shape the future of data centers in the Commonwealth," said Senator Aaron Rouse. "Governor Spanberger is taking important steps in the right direction with this proposal. I look forward to working with her, Senator L. Louise Lucas, and my colleagues on this critical issue. While President Trump and Republicans in Washington are failing to protect our communities, Virginia Democrats are standing up to hold data centers accountable, protect our public resources and ensure Virginians always have a seat at the table."

"Governor Spanberger has done something Virginia has needed for a long time: she's turned the page on Virginia's approach to data centers," said Speaker Don Scott. "This is a moratorium on bad actors in this industry. If you're a developer who wants to cut corners, ignore your neighbors, or stick Virginia families with the bill, you're not welcome here anymore. I'm proud to stand with the Governor on this, and I'm proud of the work the General Assembly has already done to get us to this moment."

"Virginians are demanding their leaders step up and take action regarding data centers that are having an enormous impact on our environment, quality of life, and electric bills," said Delegate Rip Sullivan. "The Governor's proposals today are welcome and positive steps forward in this critical policy discussion. I look forward to working with the Governor and my colleagues in the General Assembly to make transformative progress on this issue. Virginians deserve nothing less."

"The Governor's executive action is a very positive step forward for any Virginian who values environmental protection and clean energy," said Delegate Alfonso Lopez. "Virginia is now at the forefront of the nation in data center regulations, and I am excited to work with the Governor to pass meaningful legislation in the coming General Assembly session."

"Data centers must be held accountable for the impact they have on our communities and so Virginians see real, lasting benefits from these investments," said Delegate Jeion Ward. "I agree with Governor Spanberger that we need to deliver a better deal for Virginia workers - both by prioritizing local hiring and setting strong workforce training goals for our communities. Virginia Democrats have made tremendous progress for working families - raising the minimum wage to $15 and passing paid sick leave - but we must continue to make sure that the growth happening in Virginia creates good-paying jobs and opportunities for the people who call our Commonwealth home."

"This framework is an enormous step forward in protecting my community from the impacts of data centers," said Delegate John McAuliff. "It gives counties the tools they've been asking for, sets new clean energy requirements and anti-pollution measures on existing data centers, and forces companies to pay for their own electrical infrastructure. We will have more to do, but this framework puts Virginia as the national leader on data center regulation."

"Virginians should not have to choose between innovation and affordability. If Virginia is going to lead in artificial intelligence and other emerging technologies, we must build the energy, infrastructure, workforce, and safeguards to do it right - without forcing families and small businesses to pay the price," said Delegate Cliff Hayes. "I commend Governor Spanberger for creating this AI task force and bringing people from across the public and private sectors to the table. Last session, I was proud to advance legislation focused on privacy and responsible AI oversight. Now, Virginia has a chance to lead the nation in strengthening cybersecurity, demanding accountability, and ensuring that powerful technologies are tested, verified, and deployed responsibly."

"Governor Spanberger is once again showing what it looks like to lead the nation on this issue, and to put Virginia families first," said Delegate Irene Shin. "This plan holds data centers accountable for paying their fair share of the transmission and generation costs they're driving up, rather than passing those costs off to residential ratepayers. That's exactly the kind of bold, forward-thinking leadership Virginia needs right now."

Environmental advocates and local and national leaders expressed support for Governor Spanberger's nation-leading Framework.

"The Virginia League of Conservation Voters applauds the bold step forward that Virginia is taking today to hold data centers accountable and protect Virginia communities," said Michael Town, Executive Director of the Virginia League of Conservation Voters. "Thank you, Governor Spanberger, for your commitment to tackle this issue. We stand ready to join you as we build a stronger, healthier and cleaner Virginia together."

"The Sierra Club commends Governor Spanberger for her executive order and proposed policy platform and is grateful to her for this robust action," said Connor Kish, Director of the Sierra Club Virginia Chapter. "The order represents the strongest executive action taken on the environmental impacts of data centers in Virginia that we have ever seen. The Data Center Accountability Framework proposed includes major and important steps forward for continued action. We look forward to working with Governor Spanberger, her administration, and members of the General Assembly from both sides of the aisle to enact these meaningful improvements."

"Chesapeake Bay Foundation welcomes Governor Spanberger's ambitious framework to rein in the impacts that unchecked data center growth is having on Virginia's waters and lands," said Jay Ford, Virginia Policy Manager of the Chesapeake Bay Foundation. "Bringing greater transparency, setting real environmental standards, and establishing new precedents for what responsible development looks like is a critical step toward protecting Virginia's natural resources for generations to come. We look forward to working with the Administration and the General Assembly to turn this framework into strong, lasting protections for Virginia's air, land, and water."

"This is a promising and ambitious announcement. Virginians have been struggling with the impacts of data centers - from skyrocketing electric bills, to communities being kept in the dark about proposals in their backyards, to harmful air and noise pollution, and to projects that are placing tremendous strains on our water supplies," said Nate Benforado, Senior Attorney at the Southern Environmental Law Center (SELC). "The Governor's framework is focused on tackling these concerns to deliver better outcomes for our communities. I am eager to work with the Governor and her entire team, and the General Assembly, to sort through the details, make this a reality, and pass a strong package of reforms."

"Governor Spanberger understands that data center growth must be accountable growth - protecting families from higher bills, safeguarding water and land, bringing new clean power online, and, most importantly, ensuring local communities see real benefits," said Former U.S. Secretary of Energy Jennifer Granholm. "This framework sets a new national standard for the durable, community-centered policies needed to meet this moment."

"This proposal by Governor Spanberger is a welcome response to the growing concerns about the existing and long-term impact of the rampant pace of data center development across Virginia," said Dawone Robinson, Managing Director for Climate and Energy at Natural Resources Defense Council. "We need to act quickly to protect household affordability, quality of life, and natural resources. This is just the beginning of the process - we look forward to working with the governor, legislative leaders and impacted communities to build comprehensive guardrails around data center development that will put Virginia families first."

"Governor Spanberger's landmark framework puts an end to non-disclosure agreements and secret deals, finally bringing long-overdue transparency to Virginia's energy grid," said Rev. Cozy Bailey, President of the NAACP Virginia State Conference. "By guaranteeing community benefit agreements, this framework ensures tech expansion serves everyday Virginians rather than exploiting historically marginalized communities. We look forward to continued collaboration with the Governor, her Administration, and the General Assembly to bring these policies to life."

"As Virginians grapple with the significant energy, water, and land use impacts of data center development, Governor Spanberger is forging a new path and taking meaningful action to protect the state's ratepayers and environment," said Casey Katims, Executive Director of U.S. Climate Alliance. "We commend her leadership to ensure data centers are held accountable to deliver cleaner energy, lower costs, more responsible use of natural resources, and a stronger and more reliable grid for everyone."

"A win-win is possible. Opportunity and certainty are important for Virginians and for companies growing the state's economy. Flexible, clean solutions that improve affordability are key," said Jacob Corvidae, Senior Principal - U.S. States, RMI. "Governor Spanberger's executive order ensures that investment happens with transparency, where communities benefit, the grid is strengthened, and energy costs are not passed along to ordinary Virginians."

BACKGROUND

The Governor's Data Center Accountability Framework builds on Governor Spanberger's previous work to make sure data centers pay their fair share for energy and protect Virginia ratepayers. Earlier this year, the Governor proposed and signed into law the nation's first statewide energy consumption tax on data centers.

The Governor also successfully urged the SCC to require data centers to pay for transmission infrastructure built exclusively for their operations - saving Virginia families hundreds of millions of dollars. Finally, the Governor signed into law more than a dozen bills to enforce stricter requirements on backup generators, tighten water usage rules, and give local leaders more tools to assess the impacts of data centers.