Virginia tightens data center controls amid growing backlash

Key facts

• Virginia is tightening controls on data centers, including banning non-disclosure agreements for projects.
• New regulations will require stricter permitting and impose clean energy mandates on data centers.
• Governor Abigail Spanberger announced the new measures on Friday.
• Virginia has the largest concentration of data centers globally.
• The state's new law, effective July 1, 2026, governs data center siting and requires developer disclosures.
• Del. Sam Rasoul of Roanoke was a patron of the data center siting bill.

Virginia is implementing stricter regulations on data centers, including a ban on non-disclosure agreements for projects, enhanced permitting processes, and clean energy mandates. Governor Abigail Spanberger announced the measures on Friday, as political opposition to the technology and its infrastructure grows.

Virginia, which hosts the world's largest concentration of data centers, is among several states enacting controls on the facilities. The new law, effective July 1, 2026, requires data center developers to conduct studies on noise and utilities and disclose substations. It was co-patroned by Del. Joshua E. Thomas and Sen. Danica A. Roem, both representing Prince William County, a hub for data center development.

This marks the third legislative attempt to regulate data centers in Virginia, following a broader bill vetoed by former Governor Glenn Youngkin in 2025 due to concerns about local autonomy. While Governor Spanberger has dismissed the idea of a statewide moratorium, some local governments are pursuing bans or restrictions. Front Royal has prohibited data centers in its industrial areas, and Shenandoah County considered a ban. Frederick County is reviewing data centers as a permitted use, and Spotsylvania and Loudoun counties are contemplating bans on new development.

Globally, data center development is shifting, with Texas emerging as a significant market. A report by JLL indicated that 77% of US data center development is occurring in "frontier markets," with West Texas leading. Texas is projected to have twice the data center capacity of Virginia in the near future, partly due to a more favorable state government stance on development.