NORFOLK,Va. — Gov. Abigail Spanberger signed an executive order Friday that addresses data center expansion and sets stricter standards.

Executive Order 22 bans state agencies from entering into or requiring non-disclosure agreements for data center projects, creates a new AI task force and directs the state to develop environmental regulatory standards.

“Starting today, this industry no longer has carte blanche to play by their own rules in Virginia,” Spanberger said.

The order does not prevent data centers from being built. Virginia is home to hundreds of data centers — one of the largest concentrations in the world. When asked about applying the new standards to existing data centers, Spanberger said she will work to bring existing facilities into compliance.

“Obviously as we look towards the future, we have the full ability to set whatever standards it is that we intend to do. For those that are up and running and already operating, we have the ability and the intention to continue to make sure that into the future we are holding them to greater and greater standards,” Spanberger said.

The order gets rid of by-right approval for data centers using more than 25 megawatts, requiring local approval for those projects.

The executive order is the first action under the state’s newly proposed “Data Center Accountability Framework,” which is focused on transparency, environmental protections, lowering energy costs, clean energy and Virginia’s workforce.

Spanberger said her order is a step toward “putting a stop to the secrecy this industry so often relies on.” Effective Friday, executive branch agencies are banned from signing non-disclosure agreements for data center projects.

The executive order expedites the development of data center noise regulations. It also directs agencies to develop new regulations for emissions, water use and energy costs.

“We’re sending a strong message today. If you want to build the future of digital economy in our state, you will do so as a good neighbor, a clean energy partner and an accountable corporate citizen,” said Josephus Allmond, Virginia’s chief energy officer.

Several Virginia Democratic legislators praised the framework outlined by the governor.

“Governor Spanberger has done something Virginia has needed for a long time: she’s turned the page on Virginia’s approach to data centers,” said Speaker Don Scott. “This is a moratorium on bad actors in this industry. If you’re a developer who wants to cut corners, ignore your neighbors, or stick Virginia families with the bill, you’re not welcome here anymore.”

Data centers have been top of mind across the state, with lawmakers from both parties calling for changes to how the state regulates the industry.

The House Democratic Caucus said in a statement that the governor’s framework is a “step in the right direction.”

But House Republican leader Terry Kilgore called Spanberger’s proposal “internally contradictory.”

“Everyone recognizes the need for changes in how Virginia engages with data centers. But the Governor’s proposal is internally contradictory and raises serious questions about whether it can actually work. It ‘encourages’ data centers to bring their own power, while proposing to sharply limit on-site natural gas and further restrict backup generation, even as those same facilities are expected to provide grid support and reduce their demand when the system is under stress. And if they fail to meet the Governor’s preferred energy standards, they could face higher taxes. That leaves one basic question unanswered: what reliable, dispatchable source of power is supposed to fill the gap? That’s not a political question: it’s how the grid works.”

State Sen. Louise Lucas, who has been on a weekslong data center listening tour, said Friday she hopes the governor “will be on the same page for the 2027 session.”

“The Governor is finally feeling the heat but still ignoring the fire. Her proposal does not end the $2 billion in sales tax exemptions provided to data centers. I look forward to moving substantial and effective legislation that Virginians’ demand.”

The Senate Democratic Caucus shared a statement Friday reiterating its interest in working with the governor.

“The Commonwealth currently has a Joint Tax Subcommittee studying data center policy and related fiscal matters. We will carefully consider the Governor’s proposals as part of our ongoing review through that established mechanism and our normal legislative processes.”

In Hampton Roads, some localities have already taken steps to rein in data center expansion.

Before the governor’s order, Chesapeake had already taken action on zoning ordinances to make sure data centers can’t be built by right — they will need to go to the city council for approval.

On Aug. 18, Virginia Beach approved a one-year moratorium on data centers. Chesapeake implemented an eight-month moratorium on data center applications in July.

Newport News and Hampton are preparing in case a data center proposal reaches the Peninsula. Both localities are working with data center consultants to learn more about the ramifications of hosting one, and Hampton is currently working to develop zoning policy to address them.

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Staff writers Natalie Anderson and Devlin Epding contributed to this report.

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