Virginia tightens data center rules and establishes a state AI task force
Virginia Governor Abigail Spanberger issued an executive order that prohibits NDAs for data center projects, introduces a review of their approval process, and establishes an AI task force to address risks such as job losses and data protection.
Virginia Governor Abigail Spanberger signed Executive Order 22, an executive order intended to give local communities greater influence over data center construction and slow approvals in a state that, according to the article, is considered the “data center capital of the world”. The order prohibits executive branch officials from signing nondisclosure agreements (NDAs) related to data center projects, mandates the accelerated introduction of noise regulations and a review of the operation of backup generators used by data centers. An AI task force is also being established to assess risks for Virginia residents, such as job displacement and personal data protection, and examine how existing law can be applied to harms caused by AI.
Spanberger also introduced the so-called Data Center Accountability Framework, which sets out additional priorities: eliminating so-called “by-right approval” (a type of automatic approval for construction on certain plots of land without additional permits, as previously applied in Loudoun County), limiting some state subsidies, introducing environmental safeguards, and protecting residents from rising energy prices associated with data center operations.
According to the article, this is another sign that individual US states are tackling data center and AI regulation on their own, while Congress and President Donald Trump delay more decisive action. On the same day, California Governor Gavin Newsom also issued an executive order on AI safety issues; New York Governor Kathy Hochul and Texas Governor Greg Abbott had previously taken similar steps regarding the rapid expansion of data centers.
According to the article, reactions to the measures vary: environmental organizations praised the approach taken by Spanberger in a statement, while others consider it insufficient. Chris Miller, president of the nonprofit organization Piedmont Environment Council, said the order mainly concerns new data centers and does not address the impacts of facilities already built or planned, or the impacts communities are already experiencing.
Why it matters
The measure shows that individual states in the United States are taking over regulation of the rapidly growing data center and AI sector because federal legislation is absent. For companies operating or building data centers in Virginia, this means a stricter and slower approval process, the loss of some subsidies, and an obligation to engage with local communities more transparently than before. For residents of affected areas, it provides a way to gain greater influence over construction approvals and protection against rising energy prices.
Relevant practical impact
What this means
For a business
Data center operators and builders in Virginia (previously described as the “data center capital of the world”) face a stricter and slower approval process, the loss of some state subsidies, and mandatory transparency with local communities, increasing regulatory risk and costs for new projects in this region.
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Event sources
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