The Daily Dig
Virginia Gov. Abigail Spanberger signed Executive Order 22 on September 18, 2026, directing state agencies to tighten oversight of data center development. The order took effect the moment it was signed.
The most immediate change hits new data centers with an anticipated peak demand of 25 MW or greater. VEDP can no longer help those projects through the Virginia Business Ready Sites Program, any expedited permitting program, or similar state programs.
The order doesn't prohibit those projects. It simply takes away the state's assist in getting them to the starting line.
Mum's No Longer the Word
State agencies can't sign, require, or enforce nondisclosure agreements that keep material information about a proposed data center out of public view. That includes the project's public incentives, anticipated resource demands, and potential community impacts.
Agencies are still expected to honor existing agreements. Future exceptions are limited to extraordinary circumstances, such as matters of national security.
Report Card Pending
The Office of the Chief Energy Officer will develop VA-LEAD, a tiered scoring system for data centers modeled after LEED and EnergyStar.
Scoring factors include energy and infrastructure impacts, water and land use, noise, workforce development, and local sustainable construction materials, among others. Once established, the program becomes the baseline for how state agencies align incentives to favor developers in the highest tier.
Proposed criteria and an implementation plan are due to the Governor by the end of 2027.
Keep It Down Out There
DEQ has until March 17, 2027 to deliver an accelerated timeline and workplan for data center noise regulations.
Their findings and recommendations on diesel and other backup generation are due the same day. That review will weigh retrofitting Tier II generators to Tier IV or equivalent controls, along with battery storage, fuel cells, and alternatives to diesel.
Cooling Off Period
DEQ is also writing rules to define cooling water scarcity areas, where water lost to evaporative cooling could shortchange other uses. The order directs that the Eastern Virginia Groundwater Management Area be designated as one.
Location, Location, Location
Virginia Energy will study brownfields, adaptive reuse sites, and edge data centers as ways to spread development across the state with less impact. Their recommendations are due by May 16, 2027.
The Department of Forestry will write procurement best practices that encourage mass timber, local wood products, and locally sourced materials. Separately, Virginia Works will set workforce reporting criteria for individual data center projects by March 17, 2027.
Snapshot:
Order: Virginia Executive Order 22 (2026)
Signed By: Gov. Abigail D. Spanberger
Date: September 18, 2026
Effective: Upon signing
Sector: Data centers
Implementation Lead: Office of the Chief Energy Officer
VEDP Assistance Excluded: New data centers at 25 MW+ anticipated peak demand
Programs Affected: Virginia Business Ready Sites Program, expedited permitting, similar state programs
NDA Policy: State agencies barred from signing, requiring, or enforcing covered NDAs; existing agreements expected to be honored
VA-LEAD Model: LEED and EnergyStar
VA-LEAD Factors: Energy and infrastructure, water and land use, noise, workforce, clean energy and resilience, local sustainable construction materials, community benefits
VA-LEAD Criteria Due: End of 2027
Community Engagement Toolkit Due: January 16, 2027 (120 days from signing)
Noise Rule Workplan Due: March 17, 2027 (180 days from signing)
Backup Generation Findings Due: March 17, 2027 (180 days from signing)
Cooling Water Rule Workplan Due: March 17, 2027 (180 days from
Designated Scarcity Area: Eastern Virginia Groundwater Management Area
Siting Recommendations Due: May 16, 2027 (240 days from signing)
Workforce Reporting Criteria Due: March 17, 2027 (180 days from signing)
Procurement Focus: Mass timber, local wood products, locally sourced materials
Energy Costs: State to advocate assigning PJM Reliability Backstop Procurement costs to the data center large loads causing them
Grid: Emergency curtailment procedures planned for data centers not bringing new capacity under PJM's IRAS program, pending FERC approval
Also Created: Rapid response AI Task Force and AI Policy Planning Unit
Rescinds: Executive Order 30 (January 18, 2024) and Executive Directive 5 (September 20, 2023), both issued by Gov. Glenn Youngkin; policies, standards, and guidelines published under EO 30 remain in effect until replaced
TheJobWalk Thoughts
The 25 MW cutoff is narrower than it sounds. It doesn't block any project or touch local zoning, and it only removes VEDP's help. In our experience, zoning and utility interconnection tend to drive the real schedule anyway. Still, it's worth checking whether any large Virginia preconstruction plan quietly counted on that state assist.
The NDA ban could be a quiet gift to business development teams. State agencies can no longer use NDAs to keep incentives and resource demands under wraps, so useful project intel may surface earlier.
In eastern Virginia, mechanical bidders should watch DEQ's scarcity criteria before locking in any evaporative cooling assumptions.
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