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Virginia Gov. Abigail Spanberger’s data center plan is facing criticism that one of its key provisions may work against itself: Limits on on-site natural gas generation could make it harder, not easier, for large data centers to support Virginia’s already-stressed electric grid.
The stakes are high because Virginia is already struggling to keep up with rapidly growing data-center electricity demand, especially in Northern Virginia, where demand is outpacing the expansion of transmission lines and substations. Restricting on-site natural gas generation could make it harder for large data centers to add dependable power at a time when the state is trying to stabilize the grid while also shifting toward cleaner energy sources.
“Everyone recognizes the need for changes in how Virginia engages with data centers. But the Governor’s proposal is internally contradictory and raises serious questions about whether it can actually work,” Virginia House Minority Leader Terry Kilgore told Fox News Digital.
Spanberger’s Data Center Accountability Framework calls for data centers to help stabilize the electric grid while limiting the amount of electricity they can generate from on-site natural gas.
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Kilgore, R-Gate City, noted that the plan states data centers should source their “own clean power” while at the same time seeking to “limit the amount of electricity data centers can generate from … natural gas.”
The plan also calls for accelerated clean energy development and prioritizes grid access for data centers that invest in “clean energy” or “further limit on-site natural gas generation.”
“And if they fail to meet the governor’s preferred energy standards, they could face higher taxes,” Kilgore said.
“What reliable, dispatchable source of power is supposed to fill the gap? That’s not a political question: it’s how the grid works.”
A Spanberger spokesperson told Fox News Digital that the governor’s plan is the “most comprehensive and wide-ranging” in the country and that it aims to protect both Virginia residents and the commonwealth’s “natural beauty.”
“The Governor’s plan also ends secrecy around data centers by banning non-disclosure agreements and strengthening local approval. While Governor Spanberger is pushing to hold data centers accountable — an action polling shows is overwhelming supported by Democrats and Republicans — the Trump Administration has continued to dismiss the very real concerns Virginians have about data centers’ energy, water, and land usage,” the spokesperson said.
Spanberger’s plan can still allow data centers to construct on-site power, as the framework only restricts the use of that power.
She also signed a bill by Del. Rip Sullivan, D-Great Falls, that sharply increased Virginia’s goals for energy storage, including a target of 1,600 MW of storage capacity at homes and businesses.
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Republicans said they found some common ground with Spanberger on the issue, citing public unease about the explosion in data center construction and stress on resources.
“I am glad the Governor is finally talking about high power bills and data centers. Virginians already are,” Senate Minority Leader Ryan McDougle, R-Hanover, said in a statement obtained by Fox News Digital. “This should not be a partisan issue.”
But he also echoed Kilgore’s concern about the plan’s energy-generation dynamics amid looming zero-emissions requirements.
“Virginians — Democrats, Republicans, and Independents — will tell you the same thing. Their power bills went up. The laws raising electric bills — the tax on carbon, the Virginia Clean Economy Act, solar mandates, and more — should be repealed, and the companies building data centers should pay their own costs,” McDougle said.
At the same time, some top Democrats criticized their governor’s plan.
“The governor is finally feeling the heat but still ignoring the fire,” Senate President Pro-Tem L. Louise Lucas told Richmond’s ABC affiliate.
Lucas, of Portsmouth, said the framework wrongly ignored the need to end tax exemptions for the centers.
The debate comes as Virginia is already in the midst of a state-mandated transition away from carbon-emitting electricity generation under the Virginia Clean Economy Act.
Under the law, the state’s major utilities generally must retire their remaining in-state generating units that emit carbon by burning fuel by the end of 2045. The law also allows utilities to seek relief from those requirements if compliance would threaten the reliability or security of electric service.
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Spanberger’s new framework would push qualifying data centers further in that direction, limiting on-site natural gas generation while prioritizing grid access for facilities that invest in clean energy, reduce backup-generator emissions and further restrict their reliance on natural gas.
Kilgore’s argument surfaced new tension: Restricting one source of on-site power before sufficient dependable alternatives are available could create the very reliability challenge Spanberger’s framework says it is intended to prevent.
The issue is particularly acute in Northern Virginia, where data-center electricity demand is growing faster than the transmission lines and substations needed to serve it can be expanded, according to Loudoun County.
In Northern Virginia’s so-called data center alley, officials are already troubleshooting how to stabilize the grid as an explosion in data center construction puts massive sites among densely populated subdivisions.
There, Loudoun County leaders say the typical data center requires a continuous supply of 30 to 200 MW — enough to otherwise power 200,000 average homes.
The county’s explanation of data center development considerations also specifically lists “natural gas reciprocating engines” as one of the avenues for onsite power, appearing to contradict the push by the governor away from the fuel source.
Fox News Digital reached out to Rep. Suhas Subramanyam, D-Va., for additional comment on the matter because he represents the county in Congress and has been a top voice in the data center debate.
Earlier this month, Subramanyam introduced the National Data Center Plan, which would similarly require data centers to pay for their own energy, analyze their effects on the community, environment and national security before beginning construction.
The debate leaves the central dispute over Spanberger’s data-center plan unresolved: whether clean generation, battery storage and flexible demand can provide enough dependable power to accommodate Virginia’s rapidly growing data-center load as the state simultaneously restricts on-site natural gas generation.
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