Spanberger starts push for tighter data center rules

What the order does

Gov. Abigail Spanberger signed Executive Order 22 on Sept. 18 and introduced a Data Center Accountability Framework covering transparency, environmental protection, energy costs, clean energy and local workers.

The order bars executive branch agencies, departments, boards and commissions from entering nondisclosure agreements with data center developers. Those state bodies also may not require such agreements for data center projects. The restriction does not apply to local governments, so Spanberger plans to seek legislation extending the ban to local agreements.

The framework does not call for a pause on new data center development.

What Spanberger wants lawmakers to change

Spanberger proposed ending by-right approval for data centers using more than 25 megawatts of power. By-right approval allows a qualifying project to proceed without the public hearing and local governing-body vote required for a conditional-use permit.

Her package would also remove data centers from an expedited permitting process for projects at locations designated as ready for business development.

The framework calls for statewide data center standards addressing energy efficiency, water consumption and effects on land. It also seeks faster action on noise rules, though it sets no deadline. Existing budget language gives the Department of Environmental Quality until 2029 to study the lowest sound levels at which data centers can operate and use that work for a standard.

Costs and next steps

Budget language approved by the General Assembly in June directs environmental regulators to identify areas where data center cooling could threaten drinking-water availability. Data centers in those designated areas, concentrated mainly east of Interstate 95, will have to reduce water use.

Spanberger’s framework also calls for utilities to assign more industry-related energy infrastructure costs to data centers. The legislative proposals will go before the General Assembly during the session beginning in January.