AGP Executive Report

Data Centers in the Spotlight: Virginia’s new data center “accountability” push is drawing pushback from the Virginia Chamber, which warns added permitting and confidentiality limits could hurt investment competitiveness, even as Gov. Abigail Spanberger’s framework and AI task force aim to curb energy-cost impacts. Energy & Infrastructure: The Army Corps of Engineers will begin next month dredging the Lewes–Rehoboth Canal, a near-$10M contract that will move sediment to placement sites and likely narrow the channel through March 2027. Agriculture Emergency: Gov. Spanberger declared a state of emergency over Virginia’s hay shortage tied to drought, with Rep. Morgan Griffith backing the move as farmers’ access to feed tightens. Workforce & Education: A Virginia Boys and Men Advisory Commission report says boys are falling behind in early education and later workforce engagement, calling for targeted policy interventions. Environment & Fisheries: Chesapeake Bay blue crab surveys show a rebound, estimating 349 million crabs—up 46% year over year—after years of low numbers. Local Politics: Fredericksburg council member Jannan Holmes says she’ll run for the House of Delegates’ 65th District seat next year.

Data Centers & AI Policy: Gov. Abigail Spanberger rolled out Virginia’s Data Center Accountability Framework and launched an AI task force, aiming to give communities more transparency and say while tightening standards on energy use, environmental impacts, and risks like privacy and workforce disruption. Local Backlash, Mixed Signals: A grassroots “Data Center Revolt” bus tour in Alexandria drew only a small crowd, underscoring how loud opposition can be while turnout stays thin. Defense Tech (Virginia-linked): Leidos, a Reston-based contractor, won an $85M ceiling contract for aircraft design software under the Air Force’s VOLARE program, with work running through 2036. Military Readiness (Portsmouth): The Navy awarded Kato Engineering a $49.3M sustainment deal for EMALS energy storage subsystem support, including parts work in Portsmouth. Industrial Manufacturing (Virginia): IperionX received a second Army task order to expand titanium powder-to-part manufacturing at its Virginia facility, pushing domestic supply capacity. Community & Infrastructure: Henrico County’s public works teams are advancing fall traffic-safety and utility modernization projects across multiple districts.

Data Centers in the Spotlight: Virginia Gov. Abigail Spanberger rolled out a “Data Center Accountability Framework” and Executive Order 22, tightening environmental standards (energy efficiency, water use, noise), requiring local approval for projects over 25 megawatts, banning non-disclosure agreements between state agencies and developers, and creating an AI task force—sparking pushback from industry groups and opponents who argue the rules don’t go far enough. Local Permitting & Community Impact: Roanoke County highlighted how NDAs can block neighbors from learning plans for potential data center sites, while Effingham County planners said existing zoning and conditional-use rules may be enough—no separate data center ordinance needed. Energy Demand Reality Check: A broader national debate is framing AI power needs as a political issue, with governors tightening conditions as residents worry about electricity costs and grid strain. Virginia Agriculture Tech: Virginia Tech launched an online system for soil testing submissions and tracking, replacing paper forms and adding credit card payments. Consumer Safety: Abbott baby formula faces major payouts after alleged safety lapses, while Virginia poison control warned about mislabeled kratom/cat’s claw products. Transportation & Infrastructure: Hampton Roads broke ground on the final I-64 express lane segment in Norfolk, with construction expected to run into late 2029.

Aviation & Infrastructure: The FAA says President Trump’s planned triumphal arch near Arlington Cemetery won’t interfere with flight paths into Reagan National, though it still requires notification before construction. Roadbuilding: Montgomery County will start an $8.3M intersection upgrade at Prices Fork and Peppers Ferry Roads late Sept., with lane closures/flagging expected through 2027. Workforce & Education: Eastern Shore Community College opened a Virginia Career Works center in Melfa to connect job seekers, employers, and students with counseling, résumés, mock interviews, and internships. Agriculture: Gov. Spanberger declared a hay shortage state of emergency, using over-width transport waivers and price-gouging protections to move feed as drought impacts reach a 500,000-ton shortfall. Data Centers & AI Policy: Gov. Spanberger rolled out a Data Center Accountability Framework, including banning state NDAs for projects over 25 MW, tightening local approval, and creating an AI task force amid backlash over energy costs and environmental impacts. Consumer Finance Enforcement: DC and 40 states reached a $694M settlement with Credit Acceptance over predatory auto loans, requiring disclosures and added consumer protections. Virginia Industry Watch: Bechtel notified officials that about 200 Reston roles could be affected after splitting with TerraPower, though it expects few, if any, layoffs.

Data Centers & Power/Water: A federal judge in Virginia rejected DOJ’s push to break up Google’s ad tech, but still ordered behavioral changes—another reminder that tech infrastructure keeps getting regulated. Local Governance: Hampton and Chesapeake city council races are heating up around data-center moratoriums and rules, with candidates split on how to balance growth, affordability, and infrastructure strain. Energy & Agriculture: Gov. Spanberger declared a state of emergency as Virginia’s hay shortage worsens, with drought-driven feed costs climbing and emergency measures aimed at stabilizing supplies. Workforce & Industry: GO Virginia awarded $332,900 for manufacturing workforce training expansion in the Shenandoah Valley, targeting industrial maintenance, precision machining, automation, and robotics. Defense/Shipbuilding: Huntington Ingalls won a Navy contract for long-lead materials for the USS William J. Clinton carrier program, keeping Newport News on the nuclear-carrier build track. Business & Logistics: Estes Express Lines plans nearly $56M to expand cross-border and offshore freight capacity. Community & Business Openings: Mellow Mushroom announced its Oct. 26 Danville grand opening. Elections: Early in-person voting begins in Virginia for the Nov. 3 midterms, including a Frederick County sales tax referendum for school construction.

Utility & Grid Pressure: Virginia’s data-center boom is straining power systems, with Dominion projecting fivefold load growth by 2038 and a study warning typical households could see higher electricity costs. Energy Policy & Oversight: Lt. Gov. Ghazala Hashmi’s “Energy Costs Listening Tour” is pushing for more scrutiny and legislative oversight of the Dominion–NextEra merger as opponents warn of higher bills and shutoffs. Consumer Protection (Auto Lending): Virginia is part of a multistate push that secured a $694M settlement with subprime lender Credit Acceptance Corporation, including cash and debt relief plus requirements to improve disclosures and limit dealer “packing” of add-ons. Public Health & Research: Stanford-led work reports an existing anti-seizure drug, levetiracetam, can slow diffuse midline glioma growth in children, with plans for clinical trials. Industry Growth (Semiconductors): Gradiant won $300M in new water-treatment contracts for U.S. semiconductor fabs, including Virginia sites, targeting reuse and zero-liquid-discharge systems. Agriculture Emergency: Virginia declared a state of emergency over drought-driven hay shortages, signaling pressure on livestock producers. Local Governance: A Malad, Idaho road project dispute continues as residents question costs and transparency.

Data Centers & Power Costs: The U.S. House passed the Ratepayer Protection Act, pushing states to require large data-center operators to cover grid-upgrade and electricity-cost impacts, with Virginia’s electricity bill pressure cited as data-center driven. AI Energy Management: Emerald AI, Google and Nvidia launched the AI Energy Management Alliance to turn data centers into grid “assets” that can flex demand and improve reliability. Virginia Policy & Enforcement: Virginia’s AG launched a Firearms Accountability & Industry Responsibility Unit, while Virginia also fined a Microsoft data center for emissions violations. Local Housing: Falls Church ranked Urban Atlantic’s plan first for Virginia Village affordable redevelopment, aiming for up to 200 discounted units. Public Health & Design: Clarke County advanced draft plans for a health and human services building to consolidate social services and health departments. Tech for Safety: Virginia Tech and Zoox tested sound-based communication tones to help pedestrians judge autonomous-vehicle intent. Trade & Security: CBP in Norfolk seized $292,000 in radiators and dehumidifiers tied to stolen identities. Agriculture Under Strain: Gov. Spanberger declared a state of emergency over drought-driven hay shortages.

Data Center Policy: Virginia’s new data center law took effect July 1, requiring studies and disclosures but not setting hard limits like noise or water caps, a key distinction as Loudoun and other localities weigh new projects. Transportation Funding: Virginia faces a $1.7B highway maintenance gap over six years after money shifted from upkeep to construction, threatening cuts to safety and local “Smart Scale” priorities. Agriculture Under Drought: Gov. Abigail Spanberger declared a state of emergency to speed hay transport statewide, citing a 500,000-ton shortfall and unlocking emergency funding and anti-price-gouging protections. Energy Storage & Power Deals: Apex Clean Energy signed a Meta-linked solar PPA in Texas, while FlexGen and Lightshift expanded battery storage deployments across Massachusetts, Virginia, and Vermont. AI Concerns: A new poll finds most Americans worry AI-powered data centers will raise electricity costs and strain local water supplies. Local Government & Growth: Carroll County supervisors moved to halt a countywide zoning ordinance, while Warren County renewed a tourism partnership with Front Royal. Public Safety/Health: Inova and Mount Sinai are centralizing AI governance as health systems scale up AI tools, and Virginia’s AG launched a unit to enforce a new firearm industry law.

Infrastructure & Growth: Roanoke County and Salem opened new third lanes on I-81 between Exits 137–141, part of a $179M VDOT project meant to cut bottlenecks for 75,000+ daily drivers. Public Works: Berryville cleared a key step toward $15M water treatment plant upgrades after VDH issued a construction permit, shifting the facility toward membrane treatment and other system improvements. Industry & Investment: Radian Forge (Portsmouth) secured $2.5M seed funding to expand large-format wire arc additive manufacturing for naval and maritime components, aiming to reduce long lead times. Energy & Permitting: Waynesboro residents pressed DEQ at a second hearing over Northrop Grumman’s operating permit; the company says emissions will stay under its capped limits. Local Economy: Bedford County hit a record $89.7M in 2025 visitor spending, supporting 604 jobs and $3.2M in local tax revenue. Tech & Policy: Virginia’s data-center debate keeps heating up as lawmakers and officials argue over whether to regulate growth or pursue a national strategy. Business Watch: Costco announced 10 new store openings in the next two months, including a Newport News location.

AI & Data Centers: President Trump dismissed AI safety calls as a “hoax,” while new reporting highlights how data-center projects that stall can still leave utilities and communities holding the bill through “phantom” power requests. Energy & Utilities: Dominion and NextEra’s proposed Virginia merger continues to draw scrutiny as the companies sweeten benefits and bill credits; separately, Washington, Va. leaders warn sewer rates may rise again as upgrades strain budgets. Local Infrastructure: VDOT scheduled a public meeting Oct. 1 on Route 460 and Route 220 alternate work in Roanoke County, including intersection redesigns to improve traffic flow and safety. Virginia Business & Growth: DXD Capital opened a new 890-unit Class-A, climate-controlled self-storage facility in Richmond. Environment & Agriculture: Chesapeake Bay underwater grass beds expanded for a fifth straight year, with the biggest gains in Virginia’s high-salinity waters. Workforce & Education: VITA’s 2026 Virginia Datathon runs Oct. 8–16 on building an affordable Virginia using public data. Public Health & Policy: A new federal push would end SNAP restaurant meal purchases, tightening access for some low-income households. Community Watch: Residents in Accomack County are launching a home-based child care capacity program to address a growing shortage, especially in the north.

AI Policy Clash: President Trump dismissed AI safety “guardrails” and said the U.S. already has tools to police the industry, as lawmakers and AI leaders push for slower, safer development. Grid Reliability for Data Centers: MISO filed with FERC to tighten reliability requirements for “large loads” over 50 MW, including computational IT loads, after FERC flagged gaps in how grids plan for big consumers. Virginia Data Center Pressure: Loudoun supervisors will discuss a possible data center moratorium, while PJM proposes ride-through rules after a major Northern Virginia data center load disconnected during a disturbance. Defense Supply Chain: The Pentagon is investing $450M in The Elmet Group to expand domestic tungsten production and cut China reliance, tied to missile, aircraft, and submarine programs. Local Industry & Permitting: Waynesboro residents pressed city officials over Northrop Grumman’s planned facility, saying they lacked input and want stronger pollution protections. Energy Costs Watch: Gas prices stayed volatile in Virginia, with multiple counties reporting diesel and E15 lows around early September. Health Care: Children’s National earned top national honors again in U.S. News & World Report’s children’s hospital rankings, including highest in the DMV.

Energy & Grid Reliability: MISO filed with FERC to tighten reliability expectations for “large loads,” including data-center computational demand over 25 MW, aiming to improve grid visibility and planning as regulators push new interconnection rules. Fusion Investment: Hyundai Motor joined Bill Gates-backed Commonwealth Fusion Systems in a $1B funding round, signaling more industrial muscle for planned commercial fusion plants. Local Power Access: A Virginia-focused push argues states should use highway rights of way to speed permitting for transmission lines, easing congestion costs as demand rises. Data Centers & Politics: Virginia’s data-center backlash continues to spill into merger and local-control fights, with residents and officials pressing for limits as power and pricing concerns grow. Food & Dining: Lynchburg’s Fratelli Italian Kitchen reopened with a wood-fired grill, 72-hour fermented dough, and a rebuilt wine program emphasizing Virginia agriculture. Housing & Cleanup: Prince William County and Lake Gaston listings highlight ongoing home-market activity, while Colonial Heights posted a voluntary remediation notice for a former dry cleaner site. Public Safety: Pittsylvania County advanced plans for a Fire and Rescue Memorial, funded via donations and grants.

Energy & Grid Regulation: MISO filed with FERC to set new reliability rules for data centers and other “large loads” over 50 MW, aiming to improve grid visibility and planning as AI-driven demand grows. Local Energy Costs: Virginia drivers are seeing diesel and gasoline prices stay high, with multiple week-ending Sept. 5 reports showing premium and diesel costs above recent averages. Data Centers & Community Pressure: Virginia’s data-center debate keeps heating up, with more attention on how mergers and new projects could affect bills and shutoff notices, while local opposition pushes for more control. Healthcare Industry: GE HealthCare is reportedly considering a deal to buy Dulles-based Sofie Biosciences for up to $1B, boosting its cancer-imaging chemicals and diagnostics push. Business & Manufacturing: Matrix Service swung back to profit in fiscal 2026, citing stronger LNG and storage work, and is weighing next steps like a potential buyback. Public Safety: A fatal I-81 crash in Frederick County involved an oxygen-tank explosion after a chain-reaction collision, with reckless driving charges pending.

Defense & Manufacturing: Alien Control Systems opened a 191,000-square-foot plant in Austin to scale counter-drone production of its Bullfrog system, adding engineering, manufacturing, quality, testing, and supply-chain jobs. Energy & Grid Reliability: MISO filed with FERC to set new reliability requirements for data centers and other large electricity users, including “computational loads” above 25 MW of IT demand, aiming to improve grid visibility and planning. Local Data Center Pressure: Harrisonburg and Rockingham County leaders said data centers would need special-use permits and careful placement to protect water capacity and electrical grid limits. Fuel Costs in Virginia: Diesel pushed above $6 a gallon in parts of Virginia, with Richmond and nearby areas among the highest reported prices, raising pressure on trucking and consumer goods. Solar Access: New Jersey legalized plug-in “balcony solar” systems under 1,200 watts, letting households generate power without utility interconnection steps. Public Works Watch: The Lincoln Memorial Reflecting Pool repair bill reportedly topped $15 million, with additional six-figure charges tied to valve and equipment repairs. Community & Culture: Suffolk is rolling out 5-foot fiberglass peanut statues for public art, joining Norfolk and Chesapeake’s earlier sculpture initiatives.

Data & Power for Virginia’s AI Buildout: Emerald AI’s $150M push aims to keep NVIDIA/Digital Realty’s “Flexible AI Factory” usable when the grid is stressed, with a nearly 100-megawatt Manassas research site targeted to come online later this year. Grid Reliability Rules: MISO has asked FERC to set new reliability expectations for data centers and other large electricity users, including “computational loads” above 25 MW, after FERC flagged gaps in how grid operators plan for big demand. Local Housing/Community Funding: Magnolia commissioners held a CDBG hearing for $950,000 focused on structural rehab or replacement for owner-occupied, low-to-moderate income households, including eligible work in the town’s ETJ. Virginia Tech Materials Recycling: Researchers say they can convert hard-to-recycle PVC into high-performance synthetic oil, stripping out chlorine to produce lubricant-grade output. Energy Costs at the Pump: GasBuddy reports show scattered low-price points across Virginia for E85 and midgrade/premium regular—useful for drivers tracking week-ending Sept. 5 prices. Public Safety & Compliance: North Hatfield residents raised complaints about a landscaping business’s lighting and permit compliance, prompting a planning board discussion.

Data Centers & Water: Amazon has dropped a bid to tap a depleted Virginia aquifer for a data center after backlash, underscoring how power and water strain are reshaping the state’s AI buildout. Local Governance: In Roanoke Valley, a regional industrial authority moved forward on a potential land sale at Wood Haven Technology Park, but residents say the vote lacks clarity and fear the property could be headed for a data center. Grid Reliability: MISO filed with FERC to tighten reliability expectations for large electricity users, including “computational loads” tied to IT equipment—aimed at improving grid visibility as data demand grows. Telecom Transition: Virginia’s utility regulator is pushing back on Verizon’s plan to end legacy copper service, warning that 5% of mobile customers still rely on wireline services. Food Safety: Virginia restaurants and food establishments must now disclose nine major allergens (including sesame) under updated state rules that took effect Sept. 10. Public Sector/Health Policy: Virginia AG Raoul joined a coalition urging a federal appeals court to uphold a ruling blocking an ACA rule that would have made coverage harder to maintain.