Virginia Bans State NDAs for Data Center Deals

Virginia state leaders have moved to crack down on the opacity surrounding new data center construction. Governor Abigail Spanberger signed an executive order this weekend that bans state agencies from signing or requiring non-disclosure agreements (NDAs) for these projects. This direct action aims to force the terms of these massive infrastructure deals into the public eye, ending a trend of behind-closed-doors negotiations that have frustrated local residents.

The move responds to widespread concerns in southwestern Virginia, where data center proposals have frequently appeared through limited liability companies with little public visibility. Senator Tim Kaine argued that secrecy does more harm than good, noting that confidentiality often breeds suspicion and paranoia rather than trust. He advised voters to demand that local candidates commit to keeping all negotiations transparent and open to scrutiny.

Transparency measures face legislative hurdles

Spanberger’s framework outlines five core requirements, including increased transparency, stronger environmental protections, and lower energy costs. However, the executive order only covers state agencies; the broader plan requires local approval to end state subsidies for certain centers. Much of this legislation still needs approval from the General Assembly, which is not scheduled to meet again until January.

The Virginia Chamber of Commerce opposes the ban, arguing that confidentiality is essential for economic development. Industry leaders warn that companies may relocate to states that allow them to keep their financial terms private. This creates a trade-off for Virginia: gaining public trust through openness risks losing potential investment to competitors who prioritize secrecy.

AI safety concerns drive oversight debate

Senator Mark Warner framed the data center dispute as part of a larger issue regarding artificial intelligence governance. As vice-chair of the Senate Intelligence Committee, he has long advocated for AI safety, arguing that the rapid pace of change in the industry is alarming even to major corporate leaders. Warner compared the need for regulation to safety testing in aviation and automotive sectors, suggesting that no one would board a plane without government oversight.

Warner emphasized that his goal is not to halt innovation but to prevent catastrophic failures. His primary concern is the potential for AI agents to take control of critical infrastructure, such as banks, hospitals, or water systems. He noted that his position on AI safety has shifted from being an outlier to a mainstream view, as more leaders recognize the risks of unchecked technological deployment.

Political division persists on AI policy

The debate has drawn sharp partisan lines in the Senate. Majority Leader John Thune accused Democrats of politicizing the issue, suggesting that the push for oversight is driven by political motives rather than genuine safety concerns. This disagreement highlights a deeper split in Washington over how to balance economic growth with regulatory control in the emerging AI sector.