Virginia Issues Executive Order on Data Center Development
A new executive order introduces significant directives on energy use, environmental impact, and community engagement for data center projects in the Commonwealth.
Virginia's governor has signed Executive Order No. 22, creating a new regulatory framework for the state's booming data center industry. The order targets the sector's significant energy and environmental footprint by directing state agencies to develop new rules and guidance over the next several months.
Sophisticated counsel and their developer clients must now navigate a changed landscape. The order ends state assistance from certain programs for projects with anticipated peak demand over 25 MW and bans non-disclosure agreements that conceal project details and community impacts. It also mandates the development of regulations for noise, backup-generator emissions, and water use, along with a community engagement toolkit for local governments.
Operators should monitor the upcoming agency actions, including recommendations on energy costs and reliability, and the creation of a new "VA-LEAD" tiered designation program, modeled after LEED, which will become the baseline for state incentive alignment by the end of 2027. Immediate evaluation of development sites and engagement in the state's feedback process will be critical.