AGP Executive Report

Data Center Fight in Richmond: Virginia’s budget talks are stuck again as lawmakers clash publicly over whether data centers should pay more for energy use and environmental impacts, with Spanberger pushing proposals tied to ratepayer and sustainability concerns. Energy Infrastructure & Jobs: Virginia Transformer’s planned Muscle Shoals plant underscores how transformer shortages are reshaping grid buildouts, with utilities and data centers all competing for the same equipment. Rural Health Pressure: A new state look finds roughly 1 in 5 rural Virginia hospitals at risk of closure, adding strain to communities already facing long travel times for care. Food Safety: CDC is investigating a multistate listeria outbreak linked to recalled soft cheese sold in Virginia and other states. Legal/Tax: The Virginia Supreme Court reversed a license tax assessment on mineral lands, ruling counties must properly value gas reserves when taxing. Logistics Crime: Eight people were charged in an interstate scheme impersonating shipping carriers, with alleged thefts hitting logistics sites in Virginia.

Data Centers & Power Demand: The U.S. Department of Energy ordered Orlando Utilities Commission to keep a coal-fired plant running longer, citing rising electricity needs from data centers—Virginia is flagged as a major hotspot for planned builds. State Budget Watch: Gov. Spanberger says Virginia’s budget deal is moving and a shutdown will be avoided, with the biggest fight still centered on whether to end a sales tax exemption for data centers. Legal & Privacy: The Supreme Court heard arguments in Chatrie v. United States over geofence warrants and cellphone location privacy—an issue with major implications for law enforcement and tech. Energy & Costs: GasBuddy reports show spotty but generally lower prices in parts of Virginia (including Radford’s regular at $4.12 and Virginia Beach’s E85 at $4.35 for the week ending May 30), while diesel and premium prices remain higher statewide. Defense & Shipbuilding: A shooting aboard the future USS John F. Kennedy at Newport News Shipyard left one sailor dead and another in custody; the carrier is still on track for a March 2027 delivery. Local Business: Raytheon is set to invest $100 million in Portsmouth, adding 150 jobs, while BASH Boxing is closing all Northern Virginia studios by June 21.

Data Centers & Power: A new Business Insider tracker shows 1,416 data centers built or approved nationwide through 2025, with Virginia still a historic hub as developers chase fresh sites. Local Impact & Backlash: A Loudoun County data-center boom continues to spark fights over water, noise, and electricity costs, while national politics increasingly tip toward voter anger. Virginia Energy & Industry: Rocky Forge wind construction is finally underway in Botetourt County after years of delays and opposition, marking a major step for Apex Clean Energy’s long-planned project. Tech, Finance & Jobs: Virginia’s unemployment story may get a boost from defense spending tied to the Iran war, with Northern Virginia headquarters and broader manufacturing announcements expected to ripple through the labor market. Education & Public Funding: Richmond Public Schools has delayed a new Woodville Elementary School due to a $41M construction funding gap, with lawmakers considering a local sales-tax option. Higher Ed: Virginia Tech secured a record $75M gift, with most funds aimed at athletics through its “Invest to Win” push. Business & Manufacturing: TruckMountForums acquired Bane-Clene, uniting a Virginia-based cleaning community with an Indianapolis maker of electric truckmounts and chemicals. Tourism: Virginia Tourism is intensifying outreach in India, citing strong visitor spending and growth potential beyond Luray Caverns. Sports & Community: Norfolk’s Harborfest and Juneteenth celebrations run June 19-23 along the waterfront, with events and fireworks planned.

Legal Fight Over Federal Land Use: A federal lawsuit filed by two Virginia residents seeks to stop UFC Freedom 250 on the White House South Lawn, calling the June 14 event “deeply corrupt” and arguing it violates National Park Service rules, lacked congressional consent for the event structures, and skipped environmental review. Energy & Cost Watch: GasBuddy reports show spotty but notable price dips across Virginia in the week ending May 30, including diesel lows in Mecklenburg ($4.82) and premium lows in Charlotte ($5.09) and Westmoreland ($4.95), alongside regular lows like Henry County ($3.87). Local Business & Manufacturing: Virginia streetwear label 80HD Designs launched a patriotic collection timed to the U.S. 250th anniversary, leaning on heavyweight fabrics and construction aimed at premium buyers. AI Policy Politics: OpenAI CEO Sam Altman met with Sen. Bernie Sanders to discuss public ownership in AI, echoing broader political momentum around letting Americans share in AI-company gains. Data Center Pressure: A Virginia-focused debate continues as communities weigh water, noise, and electricity impacts from data center growth, with lawmakers and advocates pushing for stronger protections.

Space & Defense: NASA’s Wallops team is preparing Katalyst’s LINK spacecraft to reboost the SWIFT observatory after solar-driven atmospheric drag lowered its orbit, with a similar Hubble servicing idea on the table if costs can be cut. Higher Ed & Workforce: Gov. Spanberger announced new higher-education board appointments, while Virginia’s Board of Visitors advanced plans for a School of Data Science and Entrepreneurship and a FY27 capital plan. Energy & Infrastructure: Virginia’s first onshore wind farm, Rocky Forge in Botetourt County, is now under construction after a decade of delays, with a power deal tied to a Botetourt Google data center. AI Power Crunch: Leaders are pausing or scrutinizing data-center tax incentives over electricity and water strain, and Virginia lawmakers are weighing how AI-driven demand should be managed. Local Development: A council in Grand Junction narrowly reduced a parks impact fee for developers, a reminder that fee design can reshape growth costs. Cannabis Policy: Virginia lawmakers continue negotiating after Gov. Spanberger vetoed adult-use retail cannabis sales, leaving Danville’s medical market and hemp-derived products in limbo.

AI Policy & Industry: OpenAI CEO Sam Altman met Sen. Bernie Sanders after Sanders pushed a plan for the public to hold 50% stakes in AI companies, with Altman backing the broader idea even as he questioned the threshold—another sign AI wealth and governance are colliding fast in Washington. Defense & Shipbuilding: The U.S. Navy says a nuclear submarine rotation program will bring American sailors to HMAS Stirling in Western Australia, with the project aimed to be fully running by 2027—relevant to Virginia’s submarine industrial base and workforce planning. Energy & Costs (Virginia): GasBuddy price reports show diesel and gasoline volatility across Virginia counties, with some of the lowest diesel and E85 prices in the May 30 week appearing in places like Westmoreland ($5.29 diesel) and Franklin ($3.78 E85). Finance & Growth: Benchmark Community Bank promoted Chris Bailey to senior vice president/program manager for its wealth management division, highlighting continued hiring and leadership moves in Virginia’s financial services sector. Culture & Collections: The Virginia Museum of Fine Arts received a nearly 2,000-image gift spanning almost 200 years, feeding new dedicated photography galleries opening in 2027.

Healthcare Policy & Food Security: Charlottesville-area doctors and nurses rallied on the Downtown Mall against federal cuts they say will slash Medicaid, CDC work, USAID and SNAP, warning of tens of thousands of projected deaths. SNAP Legal Fight: A federal judge blocked the Trump administration from enforcing new SNAP funding conditions while a lawsuit by 19 Democratic-led states plays out. Workforce & Training: Danville opened a new Maritime Training Center tied to the Accelerated Training in Defense Manufacturing program, aiming to rapidly build submarine-industry skills. Defense Industry: The U.S. cleared nearly $3B in foreign military sales to the UK, Denmark and Kuwait, including counter-drone systems; Boeing in Arlington is a principal contractor. Data Centers in Virginia: Sen. Mark Warner pushed upcoming legislation to stop data centers from driving up energy costs for consumers and straining the grid. Homefront Industry: Northern Virginia HVAC firms warn refrigerant-related supply shortages could leave homeowners waiting weeks for parts this summer.

Data Centers & Power Policy: Virginia’s data-center boom keeps colliding with grid and ratepayer concerns, with new reporting tying the surge to rising utility costs and environmental scrutiny, while regional policy moves (like new large-load rate classes in other states) show how regulators are trying to make data-center growth pay its share. Local Governance & Housing: Danville updated zoning to comply with Virginia’s manufactured-housing law, limiting how localities can restrict homes based on construction type—an important shift for affordability and placement options. Energy Infrastructure: Valley Link released revised transmission route options for its 115-mile, 765-kV line across Central Virginia after thousands of public comments, refining corridors and reducing impacts on nearby homes. Public Works: VDOT will hold a Route 58 widening “Pardon Our Dust” meeting in Patrick County, with construction stretching toward summer 2031 and bridge replacements included. Transportation Safety: A CBS investigation into a deadly Virginia bus crash points to “chameleon carrier” patterns—companies reshuffling names and operators to avoid scrutiny—raising fresh questions for federal oversight. Health & Industry: FDA approved ensitrelvir (Xocova) as the first oral COVID-19 postexposure prophylaxis option for eligible adults and adolescents. Defense & Shipbuilding: A House Armed Services committee push highlights fears that Trump’s planned battleship schedule could strain U.S. nuclear shipyards and delay submarines tied to AUKUS. Business & Legal: CoStar’s antitrust case saw a pause tied to pending transfer motions, keeping the dispute in motion but delaying the next steps.

Data Center Policy Clash: Virginia’s budget stalemate is tied to a promised sales and use tax break for data centers through 2035, with House Speaker Don Scott warning that removing it would break faith with the “golden goose,” while Senate Democrats push to redirect the exemption toward teacher and child care funding. Local Zoning Pushback: Virginia Beach is weighing zoning changes that would restrict “hyperscale” data centers, arguing the city lacks land and resources to support them. Community Sentiment: A Winchester-area survey found strong opposition to data centers, with nearly 90% of respondents saying they would not support new facilities. Grid Strain From AI: Across the region, officials are warning that AI-driven data center demand is stressing electricity supplies and raising prices, with federal regulators even floating PJM governance reforms. Solar Access Update: Maryland and Virginia are opening the door to plug-in balcony solar, easing rooftop barriers for renters and others. Workforce & Tech: Virginia Tech announced a record $75 million gift, with most funding aimed at athletics, while a Virginia-based robotics team celebrated FIRST Signing Day for engineering-bound seniors. Safety Watch: A deadly Virginia bus crash is prompting renewed questions about driver history, company practices, and whether commercial buses should have stronger safety tech.

Solar Jobs in the Valley: MSolar Manufacturing will invest $23.7M to build a Mount Jackson solar panel factory, creating 150 jobs and making key components like solar glass and heterojunction cells. Submarine Industrial Push: Austal USA opened phase one of a new module manufacturing facility tied to Navy submarine production, aiming to expand shipbuilding capacity. Data Center Fight in Virginia: Lawmakers are still split on data center tax incentives as budget talks stall, while Prince William residents protest new eastern proposals over water and local impacts. Air Quality Scrutiny: DEQ issued air pollution violations tied to generator emissions during commissioning at Amazon’s Spotsylvania data center campus. Local Planning Resistance: Frederick County’s planning commission recommended denying a large Clear Brook data center campus, citing uncertainty about impacts. Hospital Weapons Law: Gov. Spanberger signed a measure making it a Class 1 misdemeanor to knowingly bring weapons into many Virginia hospitals. Fuel Watch: GasBuddy reports show scattered “lowest price” deals across Virginia counties and cities, with midgrade and premium pricing still volatile statewide. Regional Crime Crackdown: An FBI/NYPD/Manhattan DA operation dismantled a multi-state retail theft ring targeting shipments worth nearly $5M, including cigarettes, meat, and copper. Business & Legal: A class action was filed in federal court over AeroVironment investor claims tied to satellite communications competition.

Housing Policy: Congress nears a major bipartisan housing bill backed by Virginia lawmakers, including incentives to convert underused commercial sites and curb large investors’ grip on single-family homes. Agriculture & Food Processing: USDA leaders met Virginia farmers and meat producers in Doswell, pushing grants to ease bottlenecks at USDA-approved processors and reduce costly shipping for local cattle and poultry. Energy & Industry: A new European “tech sovereignty” push raises “kill switch” fears, targeting advanced chips, AI, and cloud services—an issue that could ripple into Virginia’s tech and grid-reliability planning. Environment & Waste: A bankrupt Chesterfield County landfill is generating tens of thousands of gallons of toxic leachate daily, with residents and experts warning of a potential spill into creeks feeding the James River and Chesapeake Bay. Data Centers & Power: Virginia’s debate over data center growth keeps heating up, with lawmakers and communities weighing electricity costs, water impacts, and local opposition. Workforce & Defense Manufacturing: Navy leaders convened in Danville to tackle workforce demand in the submarine industrial base.

Data Center Backlash (Virginia & beyond): Sen. Mark Warner backed the “Power for the People Act,” targeting how data centers affect electricity prices and grid upgrade costs in Virginia, where new proposals keep popping up. Workforce & Defense Manufacturing (Danville): A Danville forum highlighted Accelerated Training in Defense Manufacturing and the Navy Additive Manufacturing Center of Excellence, aiming to fill submarine industrial base jobs. Education Funding (Southwest Virginia): ARC awarded Southwest Virginia Community College $1.82M to expand career and technical education in advanced manufacturing and skilled trades. Housing Policy (Virginia): Gov. Spanberger signed a package to ease manufactured housing rules, including by-right zoning statewide where site-built homes are allowed. Health & Regulation (Chantilly): Granules Pharmaceuticals’ Chantilly facility received a USFDA VAI classification after an inspection that issued four Form 483 observations. Campus Life (Virginia Tech): Virginia Tech’s Board of Visitors voted to preserve living-learning communities and approved new residence halls. Local Governance (Richmond): Richmond School Board approved additional budget cuts to close a $4M deficit, including closing Richmond Virtual Academy and reducing certain educator hourly rates. Community & Culture (Norfolk): Norfolk Public Library announced its Juneteenth celebration and related branch events.

Food Safety: FDA and CDC reopened a salmonella probe tied to imported “super greens” supplements after additional illnesses in new states; recalls began in January and the total now tops 100 cases across dozens of states, with more brands added to the affected list. Energy & Data Centers: Dominion’s Loudoun Reliability Loop faces fresh local pushback over the Golden-Mars transmission line meant to power Northern Virginia data centers, with route details still contested. Public Health Monitoring: A proposed CDC wastewater surveillance funding cut could slash early-warning capacity as a new COVID-19 variant spreads, raising alarms for outbreak tracking. Virginia Cannabis: Gov. Spanberger’s veto keeps Virginia’s adult-use retail cannabis market in limbo, leaving businesses and regulators stuck on licensing and enforcement rules. Defense & Shipbuilding: AUKUS scrutiny grows as Australia’s plan shifts toward receiving three in-service Virginia-class submarines from the U.S., fueling debate over cost and capability. Manufacturing/Pharma: Granules’ Chantilly, Va. facility received an FDA Establishment Inspection Report with a Voluntary Action Indicated classification. Corrections: Virginia DOC outlines summer heat mitigation steps for older facilities without air conditioning.

Virginia Budget: Virginia lawmakers are set to return to Richmond to finalize the state budget before the June 30 deadline, with an updated revenue forecast adding $1.5B and negotiations still centered on whether data-center tax breaks should change. Data Centers & Power/Water: The fight is heating up as lawmakers weigh the grid and water strain from rapid data-center growth against the relatively limited permanent job impact of the incentives. Agriculture & Antitrust: A Virginia dairy farm filed a proposed class action alleging fertilizer giants conspired to inflate NPK prices, naming major global suppliers and claiming market control and supply limits. Public Health: The FDA and CDC reopened a salmonella investigation tied to imported moringa leaf supplements after additional illnesses emerged, expanding the total cases across more states. Health Tech/Policy: A study finds women taking GLP-1 weight-loss or diabetes drugs had lower breast cancer risk, though researchers stress it’s observational and needs stronger trials. Local Industry/Workforce: Virginia’s tech and manufacturing ecosystem keeps moving, including a report on a Virginia HQ relocation creating 450 jobs in Arlington. Corrections: The Virginia Department of Corrections outlined summer heat mitigation steps for facilities without air conditioning.

Transmission & Grid Upgrades: Valley Link released reworked routes for its 765-kilovolt, 115-mile line across nine Central Virginia counties, aiming to cut impacts and keep the final path in the State Corporation Commission’s hands. Local Power Infrastructure: Appalachian Power is also planning upgrades tied to Google’s proposed Daleville data center, including replacing 17 miles of transmission line and improving substations, with a public meeting set for Wednesday. Data Center Development Scrutiny: Frederick County’s planning commission will hold a public hearing on the proposed Virginia Technology Park data center campus in Clear Brook, with residents focused on noise and water/electric demand. Healthcare Workforce: Centra (Lynchburg) says it will lay off 90 employees as it restructures amid reimbursement and other industry pressures. COVID Prevention: The FDA approved Shionogi’s oral ensitrelvir (Xocova) for postexposure COVID protection for adults and teens 12+, adding a new 5-day regimen option. Agriculture & Environment: Virginia Tech research finds glyphosate can disrupt honeybee foraging and may affect hive stability over time.

Virginia Budget Standoff: Lawmakers are heading back to Richmond with a June 30 deadline looming, still deadlocked over a proposal to roll back data center tax breaks—supporters say it’s needed as the industry strains state resources, while opponents warn it could chill future investment. Data Center Water & Power Pressure: The same fight is playing out alongside mounting scrutiny of how AI data centers affect Virginia’s utilities and water discharge, with communities and regulators pushing for clearer rules. Electric Rates & Reliability: Appalachian Power (APCo) filed its 2026 base rate review asking for a $61.4M increase, but says securitization savings will cut the hit for customers while funding storm recovery, tree trimming, and reliability upgrades. Local Housing Development: Ranson’s planning commission will review proposals for a 1,002-lot active adult community, including private road and cul-de-sac requests tied to the Bane Farm site. Public Safety & Schools Leadership: Shenandoah County Public Schools Superintendent Melody Sheppard announced her resignation, setting up a transition as the district prepares for the next school year. Transportation & Industry Talent: Virginia Tech’s James Franklin is joining the search for the next athletic director as the university also moves forward on housing and athletics business planning. Healthcare & Antitrust: Arizona AG Kris Mayes sued major insurers and a McLean-based billing data firm over alleged algorithm-driven price-fixing—an issue that echoes broader antitrust pressure in healthcare.