Virginia EO Overhauls Data Center Siting and Permitting
A new executive order in Virginia introduces a sweeping accountability framework for data centers, immediately ending expedited state-level reviews for large projects and signaling a legislative push to eliminate 'by-right' approvals.
Virginia's governor has signed Executive Order 22, establishing a comprehensive data center accountability framework that marks a significant policy shift in a critical market. The order creates immediate changes, banning state agencies from using non-disclosure agreements in data center negotiations and removing large projects (25 MW or greater) from expedited site-readiness and permitting programs. The framework also directs state agencies to develop new standards for noise, backup generator emissions, and water use, and creates a new "VA-LEAD" designation to guide state incentive decisions.
For developers, operators, and their counsel, this executive action increases regulatory friction and previews a more restrictive environment. The order expressly signals the governor's intent to seek legislation in the 2027 General Assembly session that would codify these standards and could eliminate by-right local approvals for data centers. Counsel should advise clients on navigating longer permitting timelines and prepare for heightened community and environmental scrutiny, as this framework could become a model for other states grappling with the industry's rapid growth.