Virginie: Restrictions on Data Centers and AI Group

Key Takeaways

1Virginia bans NDAs for data center projects and imposes noise regulations and a review of backup generators

2A new state framework eliminates automatic approval, certain grants, environmental guarantees, and protection against rising energy prices

3A task force on AI is created to assess risks and enforce existing laws, as other states take action while the federal level remains largely inactive

Why it matters : These measures illustrate the states' willingness to locally regulate data centers and AI in response to federal inaction.

Governor Abigail Spanberger is making a shift in Virginia with an executive order and an action framework dedicated to data centers and AI. The texts notably prohibit NDAs, impose emergency noise regulations, and create a task force on AI, while a new framework targets incentives and energy impact.

NGOs Applaud, Others Call for a Moratorium

Environmental organizations have praised the measures announced by Abigail Spanberger, according to a statement relaying this support. However, other stakeholders believe the measures should go further. The Piedmont Environment Council has advocated for a moratorium on new data center projects to address existing concerns. Its president, Chris Miller, argues that the announcements primarily concern standards for new centers and do not address already built or ongoing facilities, nor their lasting effects on communities.

NDAs Banned, Noise Regulated, and Energy Relief Reevaluated

Executive Order 22 prohibits executive officials from signing non-disclosure agreements for data center projects. It mandates the urgent adoption of noise regulations and orders a review of the backup generation operations used by these facilities. It is also requested to enhance local community involvement in the development of data centers and to slow down approvals in a state described as the global capital of data centers.

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A State Framework Targets Procedures and the Footprint of Centers

In addition to the order, Abigail Spanberger unveiled a Data Center Accountability Framework for Virginia. This framework includes the end of automatic approvals as previously applied in Loudoun County, the removal of certain state financial incentives, the establishment of environmental protection measures, and the assurance that residents do not face increased energy rates due to data centers.

An AI Task Force, While Other States Move

The order creates a task force on artificial intelligence tasked with assessing how the state can address risks to residents, including workforce displacement and data privacy, and determining how existing legislation can apply to damages caused by AI. On the same day, California Governor Gavin Newsom issued an order to convene experts on AI safety, while governors of New York and Texas had already taken steps to curb the rapid development of data centers. These initiatives are presented as signs of states taking charge, while Congress and President Donald Trump have been slow or reluctant to initiate significant changes.