Governor Spanberger today signed Executive Order No. 22, introducing significant directives on data center development in the Commonwealth.
Key takeaways:
- VEDP may no longer assist data center projects with anticipated peak demand of 25 MW or greater through the Virginia Business Ready Sites Program or any expedited permitting program.
- Executive branch agencies may not enter into NDAs that conceal material information about proposed data center projects, their incentives, or community impacts.
- Establishment of a taskforce built around AI risk.
- Within 120 days, the Chief Energy Officer must publish a Community Engagement Toolkit for local governments with model disclosure templates and community-benefit agreement frameworks.
- Within 180 days, the Chief Energy Officer must provide recommendations related to electric cost and capacity, reliability, and emissions.
- Within 180 days, DEQ must provide regulations for data center noise, a backup-generation emissions review, and cooling water scarcity area designations.
- Within 180 days, Virginia Energy must obtain feedback from local government and other stakeholders related to data center development.
- Within 240 days, Virginia Energy must submit recommendations to the governor’s office based on this feedback.
- Within 180 days, coordinated state agencies must provide recommendations about workforce and procurement benefits for local communities.
- By the end of 2027, DEQ must create a new VA-LEAD tiered designation program, modeled after LEED, which will set the baseline for state incentive alignment; criteria are due by end of 2027.
Developers should take immediate action to evaluate their sites and provide feedback to state agencies. Venable is tracking this information and will be heavily involved in the process.