In a move that could reshape the Commonwealth’s tech landscape, Governor Abigail Spanberger issued Executive Order 22 on Friday in Richmond, Va. The order pairs a comprehensive Data Center Accountability Framework with the creation of a state-wide Artificial Intelligence Task Force. Together, they aim to give localities a louder voice in permitting, tighten environmental standards, and address emerging AI risks such as workforce displacement and data-privacy concerns.
Virginia already hosts the nation’s largest concentration of data centers, a status that has drawn both economic interest and community pushback. Spanberger argued that the industry grew without a coordinated plan, leaving residents to shoulder higher electric bills, water usage, and potential health impacts. By formalizing a framework that addresses these gaps, the governor positions Virginia as a potential national model for high-tech accountability.
Key provisions of Executive Order 22 and the accountability framework
The order immediately bans all executive-branch agencies from requiring or signing non-disclosure agreements for commercial data-center projects, a step designed to end the secrecy that has long shrouded the sector. It also eliminates the historic “by-right approval” mechanism, meaning any facility that exceeds 25 megawatts of power must obtain explicit local approval. Communities are supplied with a Data Center Planning and Community Engagement Toolkit to help negotiate site-specific agreements, while existing state subsidies for data-center development are rescinded and future large projects are removed from fast-track permitting pathways.
Beyond transparency, the framework mandates that utilities allocate a fairer share of transmission and generation costs to high-load customers, thereby shielding ratepayers from undue price hikes. It also requires developers to post stronger financial guarantees up-front, discouraging speculative builds that could lock up land and infrastructure without delivering tangible benefits to Virginians.
Environmental safeguards and grid reliability measures
Virginia’s new standards call for the nation’s toughest benchmarks on energy efficiencywater use and land impact. The order accelerates the rollout of dedicated noise regulations and commissions a thorough review of diesel and other backup-generation units that power data centers during outages. Existing and future sites are urged to transition to cleaner backup solutions, and clear water-use limits are imposed, backed by stronger state-agency enforcement.
To preserve grid stability, the framework limits how much electricity a data center may generate from on-site natural-gas or behind-the-meter sources. Facilities that invest in clean-energy resources receive priority access to the grid, and utility charges that currently deter clean-power adoption are slated for reform. The goal is to keep the Commonwealth’s electricity costs affordable while encouraging a shift toward renewable sources.
AI task force, broader state actions, and stakeholder reactions
Executive Order 22 also establishes a new AI Task Force charged with examining the rapid expansion of artificial-intelligence technologies. The group will focus on risks such as workforce displacement, data-privacy breaches, and cybersecurity threats, filling a policy vacuum left by the federal government. Spanberger highlighted that the federal administration has been slow to act on these concerns, prompting the Commonwealth to take the lead.
Virginia’s initiative joins a wave of state-level actions: California Governor Gavin Newsom recently convened experts to address AI safety, while New York’s Kathy Hochul and Texas’s Greg Abbott have each taken steps to curb unbridled data-center growth. Environmental groups have largely praised the move, though some, like the non-profit Piedmont Environmental Council, argue it falls short. PEC president Chris Miller explained, “It largely addresses standards on new data centers and does not deal with what’s already built and in the pipeline, along with the ongoing impacts piling up in communities now.” This critique underscores the tension between rapid industry expansion and the need for retroactive mitigation.
