Data Center Regulation May Not End at Approval

Most of the recent debate over data centers in Virginia has focused on new projects.

 

Should a locality approve the rezoning or special use permit? Should additional conditions apply before construction? Should development be paused while new rules are written?

 

Governor Abigail Spanberger’s new Data Center Accountability Framework raises a different issue: what obligations might apply after a data center has already been approved and built?

 

On September 18, 2026, Governor Spanberger signed Executive Order 22, directing state agencies to begin work on a broader framework addressing energy use, environmental impacts, transparency, grid reliability, and other issues.

 

Some provisions apply only to future projects. Others could potentially affect data centers already in operation.

 

Existing Facilities Are Part of the Review

One of the clearest examples involves backup generators. The order directs the Virginia Department of Environmental Quality, working with the Department of Health and Virginia Energy, to review the cumulative impact of diesel and other backup generation associated with data centers.

 

The review will consider the number and type of generators, operating hours, geographic concentration, emissions, and localized air-quality impacts. DEQ must also consider whether older Tier II generators should be retrofitted to Tier IV or equivalent emissions controls and whether alternatives such as battery storage, fuel cells, or other non-diesel technologies should play a larger role.

 

Within 180 days, DEQ must make recommendations on permitting, monitoring, reporting, enforcement, emissions controls, and public disclosure.

 

The Governor’s broader framework goes further, calling for “existing and future facilities” to move toward cleaner backup power.

 

This Is Not Yet a Retrofit Requirement

Executive Order 22 does not order existing data centers to replace their backup generators. For now, DEQ has been directed to study the issue and recommend what should happen next.

 

Other parts of the order follow a similar approach. DEQ must move forward with data center noise regulations, and Virginia Energy must evaluate operating practices that could improve grid reliability.

 

Some of that work could eventually produce requirements for existing facilities. Whether it does will depend on existing agency authority, future regulations, and possibly action by the General Assembly.

 

Other provisions are clearly prospective. For example, the order removes certain state site-readiness and expedited-review assistance for new data center projects with anticipated peak demand of 25 megawatts or more.

 

So I would not characterize the order as imposing broad retroactive requirements on existing data centers. But it does put existing operations into the state’s data center policy discussion.

 

Why That Matters

Data center developers understandably spend significant time focused on getting a project approved, including local land-use approvals, environmental permits, utility issues, construction, and finally operation. The new Virginia framework is a reminder that approval may not end the regulatory inquiry.

 

Backup generation is a good example. A locality reviewing one proposed data center may examine the generators associated with that project. Virginia is now asking a broader question in areas with many data centers: what is the cumulative effect of backup generation across multiple operating facilities? Similar questions could arise around noise, grid reliability, water use, and other operating impacts.

 

Important questions remain. What standards will agencies recommend? Which can be imposed under existing law? Which will require legislation? And other considerations, which will only become clear at a later point in time.

 

For now, the important point is that Virginia’s data center policy is beginning to look beyond projects seeking approval. Accordingly, for data center owners and operators, getting a project built may no longer be the end of the regulatory story.

Author

Jared Burden
jburden@greenehurlocker.com
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