Virginia Governor Creates AI Task Force and Unveils Sweeping Data Center Regulation Framework

Virginia Takes Bold Steps on Data Center Regulation and AI Oversight

Virginia Gov. Abigail Spanberger signed Executive Order 22 on Friday, marking a significant shift in how the state approaches data center regulation and artificial intelligence governance1

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. The order establishes an AI task force while implementing immediate restrictions on data center development in a state that hosts more data centers than any other in the nation. Loudoun County alone contains more than 250 facilities, which have generated substantial tax revenues but sparked intense community backlash2

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The executive order bans executive branch officials from signing non-disclosure agreements for data center projects, requires expedited noise regulations, and mandates a review of backup-generation operations used by data centers1

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. These measures represent what Spanberger called "the most comprehensive and aggressive" package of data center policies in the country, though critics note it falls short of the one-year moratorium enacted by New York Gov. Kathy Hochul3

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AI Task Force Addresses Workforce Displacement and Data Privacy

The newly established AI task force will evaluate how state government can address risks to Virginians including workforce displacement and data privacy issues, while determining how existing law can be applied to AI harms1

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. "We simply aren't sure if the federal government is going to act on this—though it is my hope that they move forward with new guardrails as soon as possible," Spanberger stated3

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. The task force will recommend legislation for lawmakers to consider in the January General Assembly session.

This state-level action comes as Congress and President Donald Trump have been slow or resistant to sweeping changes on AI and data center policy1

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. Trump recently posted on social media that fears about AI and data centers are "a HOAX," while U.S. House Minority Leader Hakeem Jeffries warned that "we need to act now" regarding rampant AI development3

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Environmental and Community Impacts Drive Policy Changes

Spanberger's "Data Center Accountability Framework" addresses mounting environmental and community impacts from the booming data center industry. At The New York Times's Climate Forward event, she described how some residents "are putting mattresses up against their windows because the noise is so significant" from cooling systems2

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. The backup diesel generators that power many centers have created air pollution exacerbating childhood asthma and other respiratory illnesses2

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The framework includes eliminating by-right approval—the kind that existed in Loudoun County for years allowing developers to build without additional approvals—removing some state subsidies, establishing environmental guardrails, and safeguarding residents against increased energy prices associated with data centers1

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. Spanberger called for limiting electricity that data centers can generate from natural gas and incentivizing developers to supply their own clean energy adoption2

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Grid Strain and Energy Consumption Concerns Mount

Dominion Energy, Virginia's largest utility, has raced to procure enough power for the colossal facilities, which can use as much energy consumption as a small city2

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. The utility is not currently on track to meet the state's legal requirement of 100 percent carbon-free electricity by 2045, highlighting the grid strain created by data center development2

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. The executive order pushes operators to invest in local energy projects to offset price hikes in the state power grid3

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Mixed Reactions to State-Level Regulations on Data Centers

While environmental groups praised Spanberger's approach, some advocates wish she'd gone further. The Piedmont Environment Council, which has advocated for a moratorium on new development, stated the order "largely addresses standards on new data centers and does not deal with what's already built and in the pipeline"1

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. State Sen. L. Louise Lucas criticized the failure to address some $2 billion in data center tax breaks, saying "The Governor is finally feeling the heat but still ignoring the fire"3

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Scott Babwah Brennen, director of the Center on Technology Policy at New York University, called it "an unusually thorough attempt" at addressing the complicated topic, though noted "we won't really know until we see some of the rules put in place"3

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. The regulations show a shift in Spanberger's stance—she has long resisted calls to cut generous tax breaks despite growing public opposition3

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Looking Ahead: Implementation and Legislative Action

Many proposals will take time to fully implement. While Executive Order 22 prohibits nondisclosure agreements for state officials, preventing such secrecy among local economic development officials would require General Assembly action, which Spanberger pledged to pursue3

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. The new requirements would apply only to future developments, with no impact on those already receiving tax breaks3

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Spanberger emphasized the state's role in creating "the real rules of the road" while ultimately leaving decisions with localities as they balance what to approve2

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. The governor's actions signal that states are increasingly taking AI and data center policy into their own hands, with California Gov. Gavin Newsom, New York Gov. Kathy Hochul, and Texas Gov. Greg Abbott all taking executive action to regulate data center industry growth1

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. Fifteen other states have considered legislation to limit data centers, according to the National Conference of State Legislatures3

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