Virginia moves to end secret data-centre deals and require local approval for projects above 25MW

Editorial illustration of a large data-centre campus in Virginia with the state flag at sunset.

Virginia Governor Abigail Spanberger has unveiled new restrictions on data-centre development as the state responds to growing concerns about electricity costs, infrastructure and the rapid expansion of AI computing.

Her Data Center Accountability Framework includes an immediate ban on state agencies signing non-disclosure agreements related to commercial data-centre projects.

Spanberger is also proposing legislation that would require data centres with power demand above 25 megawatts to obtain local approval rather than being developed automatically under existing by-right rules.

Some elements of the framework will require approval from Virginia lawmakers next year.

Grid costs and community impact

Virginia has what Reuters describes as the world’s largest concentration of data centres, making the state one of the most important physical hubs supporting the growth of cloud computing and artificial intelligence.

The expansion has also increased scrutiny of the electricity, land and infrastructure required to support the facilities.

Spanberger’s framework calls for stronger environmental and community protections and measures intended to ensure major electricity users pay a greater share of the grid costs associated with their developments.

The governor also wants greater transparency around projects following criticism of confidentiality agreements used during negotiations over proposed data centres.

Under the proposed 25MW threshold, larger developments would face local scrutiny rather than relying solely on existing zoning rights.

The changes come as communities in Virginia and elsewhere in the United States debate the effects of large data centres on electricity demand, water use, noise, land development and household energy costs.

AI companies and cloud providers are investing heavily in new computing infrastructure as demand for increasingly powerful models grows.

That expansion requires data centres capable of consuming electricity on an industrial scale.

Virginia’s new framework does not halt that development.

It would instead give communities greater involvement in approving major projects while seeking to ensure that the companies creating large new demands on the electricity grid contribute more towards the resulting costs.

Sources

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