Virginia Bars State NDAs for Large Data Centers

Virginia has issued a new executive order regulating data center development. The state hosts about one-third of the world's data centers. Governor Abigail Spanberger signed the order to change how these projects are handled.

The rule aims to balance economic growth with community protection. It focuses on transparency, environment, and energy costs. This is a major shift for a state that relies heavily on this industry.

State officials must share project details

The order bans state agencies from signing secrecy agreements with developers. These agreements previously kept project details hidden from the public. Now, state officials must share material information about proposed projects.

This includes information on incentives and resource demands. However, the ban does not apply to local governments. WSLS notes that localities often negotiate directly with developers. This creates a gap in the new transparency rules.

Incentives blocked for large new projects

The state will no longer offer certain economic assistance to new projects. This applies to data centers with peak power demand of 25 megawatts or more. The Virginia Economic Development Partnership must withhold these benefits.

The order does not cancel existing approvals. Projects already underway may still proceed. Legal experts say the final impact depends on future legislation. It remains unclear if these rules will apply retroactively.

Environmental reviews become more strict

State agencies must develop new noise regulations for data centers. They must also review the impact of backup generators. This review will look at fuel types and air quality.

The state aims to consider cleaner technologies in these reviews. A toolkit for community engagement is due within 120 days. It will help locals ask questions about water and energy use.