Editorial: Gov. Spanberger's data center plan provides pathway for Virginia

The Virginian-Pilot and Daily Press Editorial Board, The Virginian-Pilot on Oct 5, 2026

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Responsible management of data centers and the resources they consume is among the most important and contentious national debates, and no place is that more consequential than in Virginia. The commonwealth has more of the facilities than any other state, with about 400 in operation and another 280 or so under construction or in the planning stages.

Finding consensus on laws and regulations that balance the desire for growth with proper stewardship of natural resources and an equitable cost burden continues to challenge Virginia, but Gov. Abigail Spanberger believes she has a solution that seeks to address many of the concerns shared by the business community and the public. Her framework is built on sound principles and could help the commonwealth thread this very tricky needle.

Virginia has tried for years to broaden its economic base and transition from an over-reliance on federal spending to a diversified and dynamic economic powerhouse. At the heart of this has been development of a robust technology sector, one that owes its success to infrastructure and education investment, favorable permitting and tax rules, and no small measure of good fortune.

It took painstaking work by officials from the private and public sector, including members of both parties, to lure successful tech companies to open up shop in the commonwealth. The center of that growth has been in Northern Virginia, where close proximity to Washington, available land and key internet infrastructure made that region a destination.

It was accelerated by the General Assembly in 2008 approving a sales and use tax exemption for data centers and in 2010 authorizing a retail and sales tax exemption. Lawmakers effectively rolled out the welcome mat for big tech firms to locate their facilities here at a lower cost than competing states. Yet, even with those favorable tax breaks, the Joint Legislative Audit and Review Commission reported in 2024 that “the data center industry is estimated to contribute 74,000 jobs, $5.5 billion in labor income and $9.1 billion in GDP to Virginia’s economy annually.”

The growth of cloud computing and artificial intelligence have tech companies rushing to build more capacity and, naturally, they have returned time and again to Virginia. But public opinion has soured on the center as the costs — to groundwater supplies, air pollution, energy consumption — become clearer.

That led to a reckoning in this year’s General Assembly session where Democrats, despite holding majorities in both chambers along with the governor’s office, sparred over whether to roll back the tax breaks, if imposing new rates on power use would offset the strain on the electric grid, and how best to protect natural resources.

Lawmakers reached some agreement, but the solutions didn’t represent the sort of comprehensive, forward-looking policy that Virginia needs. Piecemeal isn’t going to cut it, not anymore.

That led Spanberger in September to announce an executive order outlining her “Data Center Accountability Framework,” a package of proposals and regulatory changes aimed at streamlining how the industry operates and ensuring it does so in residents’ best interests.

It’s founded on five “essential pillars”: engage transparently with communities; protect our environment; improve affordability; advance clean energy and grid reliability; and deliver a better deal for our workforce. It charges numerous agencies throughout the executive branch to focus efforts on upholding these principles as they apply to data centers to ensure that construction and planning can continue but in a more responsible, cost-efficient way.

There are actions that will require legislation, and the governor said she would work with lawmakers to see those passed into law when the General Assembly convenes in January. But this represents a bold and thorough plan for Virginia to continue reaping the benefits of data center growth while minimizing the harm to residents, businesses and the environment.

As always, the proof will be in the pudding; plans are great but actions matter more. At first blush, though, this is the sort of comprehensive vision the commonwealth needs to make sure data centers are serving the commonwealth and its residents.

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