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Virginia Imposes Nation's Strictest Rules on Data Center Operations

New regulations require data centers to disclose operations, meet environmental standards, and provide local worker hiring and community benefits.

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Steve Kim
Source: This report is based on an official public release from Office of the Governor of Virginia. PULSE organizes and summarizes public government communications.

Virginia Governor Abigail Spanberger unveiled the state's new Data Center Accountability Framework and signed Executive Order 22 to immediately implement portions of the plan, establishing what the administration described as the nation's most comprehensive data center regulatory standards.

The framework addresses concerns about data center expansion that has accelerated with the rise of artificial intelligence technology. Spanberger said the state is taking action because data centers have been "secretive, devoid of any real transparency" and raising concerns about energy bills, environmental impact, and rapid growth without coordinated planning.

The framework requires five core changes: increasing transparency through community benefits agreements and banning non-disclosure agreements for commercial projects; strengthening environmental protections for emissions, water usage, noise, and land use; lowering energy costs by ensuring data centers pay the full cost of infrastructure needed for their operations; prioritizing clean energy sourcing with 60 percent reductions in backup generator emissions; and requiring training and hiring of local workers.

The order also bans the fast-tracked permitting process previously available to data center projects on large business-ready sites. Spanberger created a new AI Task Force led by Chief Transformation Officer Dave Wilkinson to develop policy and legislative proposals addressing risks posed by artificial intelligence, including workforce displacement, data privacy, and cybersecurity.

Spanberger said the framework represents "a new way forward for how this industry does business in the Commonwealth" and added that companies unwilling to meet Virginia's standards should consider locating elsewhere. The administration plans to seek legislative approval for additional measures during the 2027 General Assembly session.

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