FOR IMMEDIATE RELEASE
Jefferson Forum calls for a broader discussion of Virginia’s energy needs and fair and predictable rules for all Virginia industries.
Sept 18, 2026 — Today Governor Abigail Spanberger came out with a sweeping new “data center framework” and Executive Order (EO22) that attempted to ameliorate growing concerns with data centers, while laying out a path for data centers to remain and even grow under new guidelines. In the end, she accomplished neither. The Jefferson Forum’s quick response to this announcement follows:
- Spanberger wants data centers to supply power while restricting their options for supplying it. Reliable and affordable energy is at the center of the data center debate. A new Pennsylvania study found that “Depending on the year, between 2 and 19 percent of electricity demand would be unmet between 2031 and 2040” within the PJM region. Her announcement proposes limiting on-site natural-gas generation and continues to push for expensive and weather-dependent renewable energy. Her restrictions require an explanation of what will replace on site gas generation, when it will be available, and at what cost.
- Spanberger is silent on existing dispatchable generation options. If the hope is to have the power supplied by Dominion, why is the Governor’s announcement today lacking support the four natural gas plants currently either in SCC review or held up at the Supreme Court that would add desperately needed 8 gigawatts of stable generation to the grid, none of it dependent on weather as foolishly demanded by the Virginia Clean Economy Act.
- The order immediately creates a permitting disadvantage for an entire industry. EO 22 excludes new projects with anticipated peak demand of at least 25 megawatts (MW) from VEDP’s specified site-readiness and expedited-review assistance. Withholding efficient permitting kills development and kills jobs. Projects from any industry meeting environmental standards should receive timely review.
- Her affordability promises need evidence — and more electricity supply. Assigning infrastructure costs cannot eliminate the price pressure created when electricity demand outpaces supply – nor can costs be so easily allocated. JLARC’s 2024 review found that data centers were paying their allocated cost of service. Targeted safeguards and additional generation are key, not more rhetoric implying the industry has avoided paying its fair share. Remember, any added costs eventually are passed on to customers in the form of higher prices.
- The proposed data center approval changes could replace predictable rules with open-ended political bargaining. Her announced elimination of by-right approval above 25 MW and requirement for community-benefit agreements raise practical questions: What benefits qualify? Who negotiates them? What limits apply? Are projects already underway protected? Public participation is appropriate, but businesses need clear standards and government must honor commitments on which investments were made. Eliminating by right approvals will open the door to greater political deal making and the concomitant political donations perceived necessary to gain such approval.
- Environmental requirements on generators should follow measured impacts and demonstrated benefits. JLARC found that backup generators contributed relatively little regional pollution and that most facilities did not generate noise complaints. That finding supports enforceable, site-specific protection and careful cost-benefit analysis, not treating every facility as equally harmful.
- Buy Virginia proposals are counter to the Governor’s affordability agenda. “Buy Virginia” pressures developers to choose politically preferred suppliers over competitively priced materials and equipment. Restricting competition can increase costs and delay construction. The governor can promote local sourcing, but compelling private developers to purchase Virginia-made products would require a valid legal basis and could face a serious Commerce Clause challenge for discriminating against interstate commerce. States have greater latitude when purchasing goods themselves, but that exception does not give them unlimited authority over private purchasing.
- Buy Union proposals are also counter to affordability. Only an estimated 5.4 percent of Virginia’s wage and salary workers belonged to unions in 2025. Requirements that disadvantage nonunion firms could narrow the bidding pool, restrict access to skilled workers, and increase costs or delays, working against the governor’s affordability objectives. Workforce standards should reward safety, skills, training and performance without making union affiliation a condition to compete.
- The Governor is not the SCC nor the General Assembly. An executive order cannot substitute for the State Corporation Commission’s legally required authorization. Virginia’s Constitution assigns the SCC responsibility for regulating electric-company rates, services and facilities, subject to law. Any change to that authority requires legislation to pass through the General Assembly. The SCC approves generation projects, not the Governor. Any attempt to dictate utility service priorities, cost allocations or generation approvals must respect that authority. The critical question is what legal authority the administration will use to implement its announced natural-gas limits and clean-energy preferences — and whether those measures preserve the SCC’s independent judgment on affordability and reliability.
Media Contacts:
Derrick Max
Vice President of Policy
Phone: 202-494-5368
Email: Dmax@Jeffersonforum.org
LJ Brouillette
Associate Director of Development & Communication
Phone: 717-514-3106
Email: LJ@Jeffersonforum.org