Spanberger unveils ‘most aggressive’ data center regulation in nation

Gov. Abigail Spanberger (D-VA) unveiled what she calls the nation’s “most comprehensive and aggressive” data center regulations in Virginia, aiming to hold companies accountable, reduce energy costs, and safeguard environmental protections.Her executive order announcement came on the heels of a week centered on the topic of artificial intelligence, as Americans have increasingly raised concerns about the data center infrastructure powering AI, and top industry executives call for national guardrails on frontier AI development.As a Democratic governor of the state home to the most data centers in the country, Spanberger has navigated the data center debate throughout her first year in office by firmly opposing a full moratorium while also calling on companies to “pay their fair share.” As the data center and AI regulation debate explodes across the country during the 2026 midterm elections, Spanberger signed a new executive order to provide more oversight in the data center industry. “The policies put forth in this framework are the highest standards in America,” the governor said. “And they’re organized around five core requirements: increasing transparency, strengthening environmental protections, lowering energy costs, bolstering our clean energy economy, and delivering a better deal for Virginia workers.”Here are the main takeaways from Spanberger’s new data center policy.Transparency aims and environmental protections Spanberger’s executive order includes several measures aimed at increasing communication and transparency between local communities and data center companies building in the region.The executive order bans the state government from signing any nondisclosure agreements related to data centers and requires community-benefit agreements between companies and local communities.Spanberger’s order also ends by-right approvals in the state, which have become a contentious topic as they allow projects to skip local government public hearings or votes if they meet all zoning and ordinance requirements.The order requires companies to get permit approval from local governments for any data center that requires over 25 megawatts of electricity.On the environmental and energy side of the order, Spanberger noted that the move will set “high standards” for data center emissions, water use, noise pollution, and land use. The order requires the state government to review the emissions and air quality impacts of existing data centers and give existing centers ways to retrofit their facilities to meet new standards.The order gets the ball rolling on the state, providing model guidance for local communities to give data center companies that will measure their “anticipated electricity demand, water use, wastewater management, backup generation, air emissions, noise, traffic, public-service needs, and other material project impact.”Spanberger emphasized the policy prioritizing data centers that promise to develop with clean energy.“We will prioritize grid access for data centers that source clean energy five years faster than the Clean Economy Act requires and reduce emissions from backup generators by 60 percent,” Spanberger said. “We’re also going to limit the amount of electricity these facilities can generate from on-site natural gas, an important step that no other state has taken action on yet.”Other provisions of the order Spanberger also emphasized that Virginia’s data center policy will prioritize proposed data center projects that commit to hiring local workers and sourcing local raw materials.“Virginians need access to good local jobs,” Spanberger said. “That’s why this framework prioritizes the training and hiring of local workers, both for construction and long-term employment. We’re also prioritizing Virginia-made, sustainable materials and technology in data center construction and grid infrastructure.”No moratorium on new centers Spanberger did not, however, announce any bans on new data center projects, something states like New York and local areas like Virginia’s Loudoun County have moved to implement.She was asked about her decision not to implement a statewide moratorium on new projects during the press conference and told reporters that she is leaving that decision up to individual communities.“As localities continue to have the option of choosing to reject or accept applications for data centers to come into their communities, it’s vital that the state actually provide a framework for them to be able to make those thoughtful, good decisions about what is important to their community,” Spanberger said.DATA CENTER HOT SPOT LOUDOUN COUNTY PUTS PAUSE ON NEW DEVELOPMENTS FOR ONE YEARRepublicans respond The reaction from Republicans in the state legislature has been largely mixed. Senate Republican Leader Ryan McDougle said he is glad Spanberger is “finally talking about high power bills and data centers,” while Virginia’s House GOP Leader Terry Kilgore called Spanberger’s energy policy “contradictory”.Meanwhile, GOP State Sen. Glen Sturtevant, who has been vocal about his calls for a statewide moratorium, bashed Spanberger for not implementing a ban, saying she “sided with the Data Center industry.”