[Regulatory Update] Virginia Announces Data Center Accountability Framework — Redesigning Siting Conditions for AI Infrastructure

On 18 September 2026, the Governor of Virginia announced the Data Center Accountability Framework and signed Executive Order 22 (EO22) to comprehensively manage the state's rapidly expanding data centre industry, including its environmental impact, its use of power and water resources, and its effects on local communities. The announcement includes both administrative measures to be taken immediately under EO22 and proposals that depend on legislation in the state's 2027 General Assembly session. Immediate measures include a ban on state executive agencies entering into non-disclosure agreements (NDAs) for data centre projects, a toolkit to support information disclosure and community participation, environmental review of on-site power generation facilities, the development of noise regulations and the development of energy investment guidelines. By contrast, tighter local approval processes for large facilities above 25 MW, a review of how infrastructure costs are allocated, and legislation on environmental, grid reliability and labour standards are positioned as legislative items for 2027 and beyond. As the world's largest data centre hub, Virginia's framework signals a move to redesign the siting and operating conditions for AI-driven facility growth, treating data centres not simply as IT investments but as critical industrial infrastructure whose power, water, environmental and infrastructure costs must be managed together.