Abigail Spanberger obviously took the “Data Center Diva” pejorative from State Sen. Louise Lucas not just personally, but also as a motivation.
Spanberger definitively lost the PR battle in the spring over data centers, but from what we’re seeing from the governor today – Spanberger is rolling out something her office is calling a new Data Center Accountability Framework – she’s at least aiming to be on the right side of the political war.
With work still to do, as you’ll learn if you read to the end here.
You could call that a spoiler alert.
From the archives
- Coverage of the political debate over data centers in Virginia: click here.
“In the years before I took office, data centers came to Virginia and the Commonwealth did not have a clear or coordinated plan to address their impacts on Virginians – on their electric bills, their water, their land, their air, or their quality of life. That changes today.
“I have said many times that Virginia should be leading the nation in setting the highest standards for this industry. And now, I believe we are doing just that,”
That was Spanberger on Friday, talking up the new framework, which, yeah, looks impressive, and comprehensive, at first glance.
Let’s point out the key planks to the framework here at the jump:
- Ban non-disclosure agreements for commercial data center projects
- Strengthen local control by eliminating by-right approval and requiring local approval of any data center using more than 25 megawatts of power
- Empower communities with tools to negotiate stronger, community-centered agreements
- End state subsidies for data centers in Virginia’s site development programs
- Remove future large data centers from Virginia’s fast-track permitting process
Those provisions, alone, give localities – and local taxpayers – the upper hand in terms of being able to fight back against under-the-table deals.
I like that the banning NDAs thing is presented as point #1, because that one aims directly at local governments negotiating away their power to regulate data centers before things get into the public sphere.
Next up, environmental protections:
- Establish strong, transparent, and nation-leading standards for data center energy efficiency, water use, land impacts, and backup generation
- Evaluate cumulative impacts of diesel backup generators and require existing and future facilities to move to cleaner backup power
- Set clear water-use standards for these facilities to lower overall water consumption and improve efficiency of water usage backed by stronger state agency enforcement against violations
- Expedite the new state noise regulations for data centers
These are all top-of-the-list items for local residents in terms of their concerns about data centers being located in their backyard.
As are these provisions in the new framework, related to energy costs:
- Protect ratepayers by requiring all utilities to allocate a more equitable share of electric transmission and generation costs to data centers and other large load customers
- Prevent speculative projects that tie up land, resources, and energy infrastructure by requiring stronger upfront financial commitments from developers
- Ensure that costs from PJM Interconnection processes to address rising energy demand driven by data centers are allocated to those data centers
Also among our concerns, grid reliability:
- Protect grid reliability by requiring data centers to meet standards that prevent sudden changes in their electricity demand from destabilizing the grid
- Limit the amount of electricity data centers can generate from on-site natural gas or behind-the-meter gas generation
- Accelerate clean energy deployment by prioritizing grid access for facilities that invest in clean energy, further reduce backup generator emissions, and further limit on-site natural gas generation
- Make it easier for data centers to bring their own clean power, including by reforming utility charges that discourage investment in clean energy
Final area, last but not least, local economic impact:
- Prioritize local hiring and encourage localities to set hiring and workforce training goals for their communities
- Prioritize Virginia businesses in procurement and contracting
- Support strong labor practices through responsible contractor standards and apprenticeship programs for new developments
- Empower Virginia workers by supporting project labor agreements where possible
Executive order
A lot of what Spanberger is laying out here is already the law of the land, so to speak, through an executive order that goes into effect today.
What is already in effect, through the EO:
- Executive branch agencies, departments, boards, commissions, authorities, and any other employees under the governor’s supervision are banned from entering into or requiring non-disclosure agreements for data center projects.
- An initial Data Center Planning and Community Engagement Toolkit has been created for local governments and communities to help localities get a better deal.
- The development of data center noise regulations will be expedited.
- The order directs a thorough review of diesel and other backup-generation operations associated with data centers.
- The order gets the administration working to direct data center investments in local energy projects that improve energy affordability for Virginians and strengthen Virginia’s grid.
- The order directs the administration to develop best practices for prioritizing the creation of quality jobs and advancing local workforce opportunities.
- The EO also creates a new entity, an Artificial Intelligence Task Force, which will be focused on addressing risks posed by the rapid development of artificial intelligence – including workforce displacement, data privacy, and cybersecurity.
Responses
Alright, so, a lot to like here.
But, as we hinted above, still a lot to do.
“The governor is finally feeling the heat, but still ignoring the fire,” said Lucas, the state senator who, as mentioned here already, has been trying to drag Spanberger into the perimeter of wisdom on data centers, and clearly, the state senator is still not sold here on where the governor is going.
For one, as Lucas points out: “Her proposal does not end the $2 billion in sales tax exemptions provided to data centers.”
True point there; first thing I noticed among all the bullet points was that omission.
That point was the one that divided Lucas and Spanberger all spring, and held up the final approval of the state budget into the final week of June.
“I look forward to moving substantial and effective legislation that Virginians demand, and I hope the governor will be on the same page for the 2027 session,” said Lucas, who signaled in her statement that, in her view, the political battle within the Democratic Party over data centers is not over yet.
“To every Virginian who keeps showing up, speaking out and fighting for the place we call home, thank you,” Lucas said. “You are the reason we’re seeing movement. We’ve got a long way to go, and I’ll keep fighting right alongside you.”
Flip side, House of Delegates Speaker Don Scott offered unbridled praise for the governor’s data center framework, calling it a “moratorium on bad actors in this industry,” though the House Democratic Caucus, in a joint statement, was a bit more reserved, using the phrasing “a step in the right direction” to refer to the framework.
“We look forward to continuing to work with Gov. Spanberger in the upcoming 2027 legislative session to develop thoughtful legislation that holds data centers accountable,” the caucus said.
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Chris Graham
