Spanberger bans new state NDAs on data centers

On September 18, 2026, Virginia Governor Abigail Spanberger signed an executive order prohibiting new nondisclosure agreements on commercial data center projects for executive branch bodies and officials under her supervision. Effective upon signing, the ban targets agreements that prevent the disclosure of substantial information about these projects.

An NDA is a nondisclosure agreement. In data center development, it can limit the information available about public incentives, required resources or local impacts. Removing this obstacle aims to give local residents and governments more information to discuss projects and influence development planning.

Existing agreements will be honored. The executive order provides for extraordinary exceptions, particularly for national security, and leaves local government NDAs outside this ban.

Certain programs closed at 25 MW and above

The Virginia Economic Development Partnership, the state's economic development agency, must immediately exclude new projects with an anticipated peak electricity demand of at least 25 MW from the Virginia Business Ready Sites Program. The executive order also excludes them from expedited permitting programs and similar discretionary programs.

This threshold refers to the maximum anticipated power demand, expressed in megawatts. The exclusion applies to the specified programs, without eliminating all public incentives or all approvals. The executive order does not establish any general construction moratorium.

Expanded local oversight awaits legislation

In her framework announced on September 18, Spanberger proposes banning local government NDAs and ending by-right local approvals for data centers using more than 25 MW during the legislative session beginning in January 2027. These measures have yet to be adopted. The proposed threshold is strictly above 25 MW, while exclusion from state programs begins at 25 MW.

Virginia Mercury reports that several counties already require a conditional use permit, a public hearing and a local vote. The proposal aims to expand local oversight, while these procedures already exist in parts of Virginia.

The Piedmont Environmental Council considers the framework inadequate for existing facilities and projects already underway. The organization is calling for a moratorium. The Chesapeake Climate Action Network, which also supports a pause, likewise criticizes the inadequate protections, Virginia Mercury reports.

Documents expected within 120 and 180 days

The executive order requires publication of an initial community guide within 120 days. For noise rules, it mandates an accelerated schedule, a work plan and consultation. Documents on this work must be submitted to the governor within 180 days, as must findings and recommendations on the cumulative effects of backup generators. These deadlines set the timeframe for the work to be completed, without making new noise limits applicable immediately.

The executive order also creates a government group focused on AI, tasked with ongoing monitoring of risks to employment, privacy and cybersecurity. No annual deadline is imposed for its findings.

More accessible information can strengthen public oversight of digital infrastructure. The outcome will depend on the data actually made public and the exceptions applied. This access alone guarantees neither lower electricity bills nor less noise.

Local residents will be able to consult the guide once it is published. For the documents on noise and generators, the executive order requires only that they be submitted to the governor within 180 days, with no obligation to publish them by that deadline. The expansion of local oversight will depend on the adoption of the legislative proposals announced for 2027.