The disclosure and our analysis
Evidence dates
Evidence: Virginia Executive Order 22, signed September 18, 2026; Office of the Governor release, September 18, 2026; WHRO report, September 21, 2026.
What the order does now
Executive Order 22 took effect when it was signed on September 18, 2026. It names the Office of the Chief Energy Officer as the lead for what the governor calls the Virginia Data Center Accountability Framework. [Source 1]
Three provisions apply immediately:
1. **No state fast track for large new projects.** The Virginia Economic Development Partnership (VEDP) "shall not provide assistance" through the Virginia Business Ready Sites Program, any expedited permitting program, or any similar discretionary site readiness or expedited review program for a new data center project with an anticipated peak electrical demand of 25 MW or greater. The 25 MW figure is peak electrical demand. It is not IT load. [Source 1]
2. **No new state nondisclosure agreements.** Executive branch agencies may not enter into or enforce a nondisclosure agreement that blocks disclosure of material information about a proposed commercial data center, its public incentives, resource demands or community impacts. Existing agreements are honored. National security matters are an exception. [Source 1]
3. **Prior orders rescinded.** The order rescinds Executive Order 30 (January 18, 2024) and Executive Directive 5 (September 20, 2023), both issued by former Governor Glenn Youngkin. Policies published under Executive Order 30 stay in effect until replaced. [Source 1]
What the order starts, with deadlines
These are directives to agencies. None of them sets a new rule for data centers yet.
1. **Community toolkit, 120 days.** Model disclosure requests for electricity demand, water, backup generation, emissions, noise and traffic, plus model community benefit agreements. [Source 1]
2. **Backup generation review, 180 days.** The Department of Environmental Quality (DEQ) must review the cumulative impact of diesel and other backup generators at data centers. It must consider retrofits of Tier II generator sets to Tier IV or equivalent controls, batteries, fuel cells and other alternatives, then recommend permitting, monitoring and disclosure changes. [Source 1]
3. **Cooling water scarcity areas, 180 days.** DEQ must expedite rules for designating areas where evaporative cooling could harm other water uses. The order states that the Eastern Virginia Groundwater Management Area "shall be designated" as a cooling water scarcity area. DEQ owes the governor a rulemaking timeline within 180 days. [Source 1]
4. **Noise rules, 180 days.** DEQ must provide an accelerated timeline and workplan for data center noise regulations. [Source 1]
5. **Siting study, 240 days.** Virginia Energy must recommend lower impact siting, including brownfields, edge sites, waste heat reuse and regions with spare infrastructure. [Source 1]
6. **Responsible development rating by end of 2027.** The Chief Energy Officer must propose tiered "VA-LEAD" criteria. Once in place, agencies are to align incentives toward the highest tier. [Source 1]
Power cost and curtailment
The order directs the Chief Energy Officer to press the State Corporation Commission, utilities and PJM to assign costs of PJM's Reliability Backstop Procurement to the data center large loads that cause them. It also seeks equitable cost allocation for PJM's Interim Resource Adequacy Service (IRAS). [Source 1]
It further directs work with the State Corporation Commission and utilities on emergency curtailment procedures for data centers that have not brought their own new capacity under IRAS, once such a proposal is approved by the Federal Energy Regulatory Commission. Curtailment practices are to favor data centers that bring their own clean energy or peak shaving. [Source 1]
What is proposed but not in the order
In her remarks, the governor said the framework also includes proposed legislation for the 2027 General Assembly session. She described ending by-right approval and requiring local permit approval for data centers above 25 MW, cutting backup generator emissions by 60%, limiting on-site natural gas generation, and prioritizing grid access for data centers that source clean energy five years ahead of the Virginia Clean Economy Act schedule. [Source 2]
The executive order text we reviewed does not itself end local by-right approval, set a 60% emissions target or limit on-site gas generation. WHRO reported that the by-right change, the on-site gas limit and local nondisclosure limits are among the proposals that need legislation. [Source 1] [Source 3] Treat those items as proposals until enacted.
WHRO also reported that the Data Center Coalition said it is ready to engage on workable policies while it waits for implementation details. [Source 3]
Buyer analysis
This is our analysis.
**Timelines for new Virginia capacity.** Losing state site readiness and expedited review help does not stop a project. It removes one way developers shortened schedules. Buyers relying on a Virginia campus that is not yet permitted should ask the provider which approvals remain and whether any depended on a state expedited program.
**Backup generation.** Many Virginia colocation sites rely on diesel standby generators. DEQ's review could lead to retrofit, runtime or reporting changes. Ask providers how many generators serve your hall, their emissions tier, any permit runtime limits, and who pays if retrofits are required. Check whether such costs can pass through under your contract.
**Curtailment exposure.** The IRAS curtailment directive depends on a FERC approval that has not happened. If it does, sites without their own new capacity could face curtailment procedures. Ask whether your provider has brought new capacity, how it would respond to a curtailment call, and how your service credits and force majeure terms treat it.
**Cooling water.** If you are evaluating sites in the Eastern Virginia Groundwater Management Area, ask what cooling design and water source the site uses. Air cooled and closed loop designs are less exposed to evaporative water limits.
**Cost allocation.** The order's push to assign PJM backstop procurement costs to data center loads could raise power costs at Virginia sites over time. The order sets a direction, not a tariff. Watch State Corporation Commission dockets before pricing it into a renewal.
