Spanberger Signs Executive Order on Data Centers

On Friday afternoon in Richmond, Virginia Governor Abigail Spanberger gathered together with her administration and staff to sign an executive order dealing with data centers. Spanberger touted it as the most compressive and aggressive policy on data centers.

This executive order included banning Non-disclosure agreements for state agencies to keep future data centers being built in secrecy without public input. Additionally, data centers are no longer able to use the Virginia Business Ready Sites Program designed to fast-track the permitting process. Spanberger called it a loophole that she was closing.

These measures appear to be designed to prevent data centers like Colossus from SpaceXAI, the subsidiary of SpaceX founded by Elon Musk. This data center uses natural gas from 27 turbines in the metro area of Memphis, Tennessee. Something that the NAACP is suing SpaceXAI over. Colossus was built in an abandoned factory that was quickly turned into data center, when the electrical grid could not produce enough energy for the massive data center, SpaceXAI turned to producing their own energy on site.

Spanberger's executive order is also aimed at directing state agencies like the Department of Environment Quality to limit the use of natural gas like the turbines at Colossus. In addition, the administration will work with the DEQ to develop a policy to retrofit data centers that use diesel to generate power.

For the nightmare of diesel powered data centers, one does not have to leave the Commonwealth to experience it. Microsoft was fined $2.5 million dollars for 7 days of running diesel generators last summer in Virginia. And again this summer, when a data center in Virginia ran their backup diesel generator while the Canadian wildfires were already polluting the air.

Additionally responsibilities with the DEQ include expediting the regulations for cooling waters for data centers. Last week, Governor Spanberger declared a state of emergency for a drought in Virginia. Water scarcity is yet another concern with the giant footprint from data centers.

The executive order also directs her administration to devise a method with the State Corporation Commission to keep the rates of straining the electrical grid from being passed down to households in Virginia.

The theme that for many of the directives in this executive order tells state agencies to come up with new policies in the void of regulations as data centers have been built hastefully around the country and the Pew Research Center says Virginia has more data centers then any other state. Instead this executive order put state agencies in the middle of the debate by giving an opportunity to allow public participation. This executive order does not solve the crisis created by data center, it is democratized. Dependant on communities to continue oppose new proposed data centers.

Spanberger's executive order is not a moratorium like from New York's Governor Kathy Hochul. Data center alley in Loudoun County has paused all new permits for data centers.

Republican State Senator Glen Sturtevant from Chesterfield County has been calling for a moratorium and criticized Spanberger for not imposing with more government interference on data centers. "This is a plan to keep approving more and more data centers across Virginia." Senator Sturtevant posted on X, the everything app.

Most Democrats in Virginia were supportive of Spanberger's executive order like State Senator Schuyler VanValkenburg from Henrico. On stage with Governor Spanberger was Connor Kish from the Virginia chapter of the Sierra Club who praised the actions from the governor.

But one exception came from Senator Louise Lucas of Portsmouth. Lucas has been a critic of Spanberger's handling of data centers.

"She's finally feeling the heat but ignoring the fire." Lucas wrote in a statement. "Her proposal does not end the $2 billion in sales tax exemptions provided to data centers."

According to VPAP, Senator Lucas has received over 1.2 million dollars from the power utility Dominion Energy since being elected to office in 1992, her biggest donor by far. As data centers continue to be built and consume energy, Dominion Energy continues to use fossil fuels to power these computing factories.

Groups like Stop Hanover Data Centers have not shown enthusiasm over Spanberger's executive order. This order does not stop new data centers from being and it does not reduce massive amount of energy consumed.