UpTrajectory Review

Governor Abigail Spanberger has signed Executive Order 22, a direct challenge to the data center industry that has made Virginia its global headquarters. The order prohibits state officials from signing nondisclosure agreements for data center projects, mandates expedited noise regulations, and requires a review of backup-generation operations. It also establishes an AI task force to evaluate risks to residents. This is a significant shift in a state where data centers have enjoyed near-unimpeded expansion, particularly in Northern Virginia's 'Data Center Alley,' which handles roughly 70 percent of the world's internet traffic.

For small business owners and residents in Virginia, this order matters because data center development has long outpaced community input. The NDAs were particularly problematic—they prevented local officials and residents from even knowing what was being proposed in their own backyards. If you operate a business near a proposed facility, you may now have access to information that was previously sealed, allowing you to assess noise, power, and water impacts on your operations. The noise regulations and backup-generation review could also address quality-of-life complaints that have fallen on deaf ears for years.

What is genuinely new here is the political calculus. Spanberger is not an anti-tech governor; she is a former CIA officer and moderate Democrat who understands the economic stakes. Her willingness to challenge the data center industry signals that even pro-business politicians now see electoral risk in unchecked AI infrastructure growth. We are skeptical, however, that an executive order goes far enough. It empowers local communities to have 'a larger say,' but it does not mandate local approval or impose moratoriums. The industry has deep pockets and sophisticated lobbying operations; expect them to exploit every ambiguity in this order.

Second-order effects will ripple beyond Virginia. Other states watching this will see whether challenging Big Tech carries political costs or rewards. For data center operators, Virginia's shift may accelerate their expansion into other states—Texas, Ohio, and Georgia are actively courting them. For Virginia residents, the immediate benefit is transparency, but the long-term risk is that data centers simply relocate, taking tax revenue and jobs with them while leaving behind the same infrastructure strains in new communities. Small businesses that serve data center workers or contractors may also feel the pinch if projects slow.

Watch the AI task force's composition and timeline closely. If it is stacked with industry insiders, the 'risk evaluation' will be a formality. Also monitor whether the Virginia General Assembly converts any of these executive actions into statute, which would survive a future governor's pen. For now, business owners and residents should use the NDA ban to demand information on pending projects in their jurisdictions. Attend local planning meetings, request project documents, and make your concerns part of the public record while this window of transparency is open.

“Executive Order 22 bans executive branch officials from signing nondisclosure agreements for data center projects, requires expedited noise regulations, and requires a review of backup-generation operations used by data centers, among other requirements.” — The Verge

Takeaway: Use Virginia's new NDA ban to demand transparency on local data center projects and make your concerns part of the public record now.