AGP Executive Report

Virginia Data Center Policy Fight: Virginia lawmakers advanced a new two-year budget that includes a fresh tax on data centers’ electrical consumption, while critics warn it’s a costly giveaway without matching climate rules and localities keep debating whether to allow more projects. Grid + Water Pressure: Reports say data centers are straining the grid and drawing scrutiny over power and water use, with regulators pushing faster interconnection rules that could shift costs to ratepayers. Local Government + Infrastructure: Clarksville shelved its Cove Project after bids came in over budget, and the town also moved ahead on utility line work tied to a Microsoft data center. Defense + Tech Manufacturing: Bowman Consulting won $11.2M in USDA aerial mapping awards, and NAPC Defense debuted a new Taser 10 CornerShot configuration at a school safety conference. Space + STEM: A Murray State engineering student was selected for NASA’s RockOn workshop at Wallops. Food + Community: Grocery Outlet launched its 16th annual “Independence from Hunger” drive with Feeding America. Business + Housing Costs: A new report highlights rising apartment fees that renters say are confusing and predatory.

Data Centers & State Budget: Virginia’s budget talks are still stuck on whether a major sales-and-use tax exemption for data center equipment should expire, with lawmakers split and a possible shutdown looming. Local Water & Growth: The Virginia Marine Resources Commission approved Caroline County’s Rappahannock water intake facility despite heavy opposition, saying the intake’s river impact is the key question. Economic Development: Prince William County approved a $1.6M grant for Sandberg Development’s new $43M U.S. headquarters and advanced manufacturing site, aiming to add 32 high-wage jobs. Workforce & Agriculture: ICE raids hit farm workers in central Virginia as dairies push for better access to H-2A visas. Public Health: Clover Hill Dairy expanded a recall to all its cheese brands tied to a Listeria outbreak that has sickened people in Virginia. Cannabis Policy: Virginia lawmakers advanced adult-use recreational marijuana retail sales, sending the compromise to the governor. Transportation: Virginia’s budget also keeps $7M for the Coalfields Expressway.

Virginia Budget Deal: Virginia lawmakers approved a two-year budget that averts a shutdown and settles the long fight over data center taxes, including a new electricity consumption fee of $0.011 per kWh starting July 1, 2026, expected to raise up to $600M annually for the general fund, plus pay raises and housing and cannabis framework language. Adult-Use Cannabis: The budget package also clears the way for a regulated recreational marijuana market, with sales targeted to begin July 1, 2027. Data Center Power Rules: Federal regulators (FERC) ordered grid operators to revise or defend tariffs for large loads like data centers, aiming to stop infrastructure costs from shifting onto residential ratepayers. Helium Supply (Virginia Gas Project): ASP Isotopes said a subsidiary tied to the Virginia Gas Project secured its first five-year take-or-pay helium contract, supporting Phase 1 operations in 2026 and setting up Phase 2 construction later this year. Gun Laws Pushback: Virginia’s new gun restrictions face non-enforcement threats from some local prosecutors, arguing parts of the assault-weapons and carry provisions are unconstitutional. Business/Construction M&A: Arcosa was acquired by CRH for $8.5B, expanding CRH’s aggregates and construction materials footprint.

Virginia Budget Deal: Virginia lawmakers approved a two-year, $205B budget that ends months of gridlock by adding a new energy-consumption tax on data centers—capped at $600M a year for two years—while keeping existing sales tax breaks, sending the compromise to Gov. Abigail Spanberger. Local Power & Grid Pressure: Storms knocked out power for 55,000+ across Northern Virginia, with Fairfax and Burke hit hard, while separate outage reports show widespread disruption across the state. Data Center Backlash Meets Reality: In Campbell County, residents are worried about Valley Link’s new transmission buildout as data centers drive demand; nearby communities cite property-value and neighborhood impacts. Water Rules for Industry: Virginia officials say drought restrictions treat data centers like other customers—no special carve-outs—based on water permits and local authority limits. Port of Virginia Expansion: The Port of Virginia marked completion of a $450M deepening project, enabling the deepest East Coast shipping channel for larger cargo ships. Public Safety & Housing Support: A program offers eviction-related hope and second chances, aiming to keep families housed. Health Watch: Measles cases continue to rise, with Virginia reporting 19 new cases tied to an ongoing Buckingham County outbreak.

Data Center Tax Deal in Virginia: Virginia Democrats agreed to tax data centers’ electricity use in a budget deal, keeping sales tax exemptions while adding a temporary per-kilowatt-hour fee that’s projected to raise about $600M a year. Clean Energy Push: New Virginia laws taking effect next month aim to accelerate solar and battery storage, including clearer utility-scale solar siting rules and new options like balcony solar. Battery Storage Expansion: Lightshift Energy announced battery projects in six Massachusetts towns, highlighting how muni utilities can use storage to cut peak-demand costs—an approach Virginia developers will watch closely. Tech + Cloud Partnerships: CGI and NetApp deepened their alliance to modernize hybrid operations and storage for AI workloads. Mining + Industry Moves: Comstock agreed to sell its legacy mining assets to Mackay Precious Metals for more than $45M, signaling continued reshuffling in Virginia-adjacent mining supply chains. Workforce Pipeline: A Virginia middle-school technical program faces uncertainty as funding runs out, raising concerns about future engineering and construction staffing. Agriculture Monitoring: Virginia officials say New World screwworm risk in the Shenandoah Valley remains minimal.

Data Center Policy Fight: Virginia Senate budget talks keep circling the data center sales tax exemption, with a new proposal preserving the break while adding a tiered impact tax aimed at diesel backup generators—an issue residents say worsens air quality and noise. Local Air & Noise Pressure: Neighbors in Northern Virginia describe taking extreme steps to block low-frequency generator and cooling-system hum, including sealing windows with mattresses, as the dispute moves from public meetings into daily life. Budget & Jobs: A Wilkes County economic incentive deal approved after a hearing—called “Project Pressure”—would bring Bevara High Pressure Processing (HPP) Tolling Services to a former ham-processing building, with $270,648 in annual property tax rebates and 92 full-time jobs by 2032, but speakers worried the name could hide a data center. Climate Accountability: Charlottesville staff told City Council greenhouse gas emissions have risen since 2022, even as the city pushes toward its 2030 and 2050 targets. Agriculture & Livestock Health: The U.S. Department of Agriculture launched an Animal Vaccine Development Program with Central Luzon State University to speed vaccines against animal diseases, supporting livestock productivity. Public Safety & Food Access: Attorney General Jay Jones urged Congress to restore SNAP cuts after enrollment fell sharply, and highlighted legal actions tied to federal policy. Defense Contracting: Air Center Helicopters in Burleson won about $166M in U.S. Navy Military Sealift Command contracts for vertical replenishment services.

Virginia Budget Deal: Lawmakers ended a data-center fight by keeping the industry’s sales-tax exemption but adding an estimated $1.2B in energy taxes to the General Fund over the next two years, as the $207B, two-year budget heads to a Monday vote. Water & Drought Response: Gov. Spanberger urged voluntary water conservation statewide while Rivanna Water and Sewer Authority reported local reservoirs near full, and Louisa County moved to stricter limits for certain well systems. Local Infrastructure Planning: Bridgewater residents got a public hearing on a potential federal grant for water and sewer upgrades in the Fountainhead subdivision, with drainage questions still in play. Tech & Power Strain Backlash: Multiple reports keep spotlighting generator noise and community impacts from Virginia data centers, adding to the pressure on regulators and budgets. Agrivoltaics Push: Virginia’s first agrivoltaics law is being framed as a way to help farms stay viable while supporting the grid. Space & Industry: An Arizona startup is racing to save NASA’s Swift telescope as atmospheric drag accelerates.

Data Center Policy Fight: Virginia lawmakers ended a three-month budget deadlock by keeping data center tax breaks while adding an estimated $1.2B in energy taxes to the General Fund over the next two years, setting up a Monday vote on the $207B plan. Local Community Impact: Residents near Vantage Data Centers in Sterling say generators run nonstop, creating constant high-pitched noise that disrupts sleep and raises property-value worries. Water & Sewer Upgrades: Bridgewater is moving toward a federal grant application that could fund water and sewer replacements in the Fountainhead subdivision, with drainage questions still on the table. Public Safety/Infrastructure: Farmville’s transportation plan review highlights ongoing needs for pedestrian safety, bike facilities, and phased project updates with VDOT input. Space & Virginia Industry: NASA’s Swift Boost mission will launch later this month, with work completed at Wallops Flight Facility in Virginia to ready the rescue spacecraft. Agriculture & Food: Clover Hill Dairy expanded a listeria recall to all cheese products after a death and multiple hospitalizations. Legal/Finance: A final defendant was sentenced in a near-$32M counterfeit coupon scheme run from a Virginia Beach home.

Food Safety: Clover Hill Dairy expanded its recall of soft cheeses after a listeria outbreak tied to one death and multiple hospitalizations, with FDA/CDC investigation updates now covering all cheese products. Manufacturing & Automation: THRYVE Automation launched as a unified brand from Jewett Automation, FTS, and S&J Precision, rolling out end-to-end automation aimed at manufacturers facing labor and AI infrastructure pressures. Tech & Infrastructure: AWS added multi-region replication to Amazon Cognito, letting apps keep authenticating users during regional outages without custom failover builds. Energy & Policy (Virginia): Virginia lawmakers advanced a legal retail cannabis framework for 2027 and also moved agrivoltaics into state code, giving farmers a clearer path to co-locate crops and solar. Local Economy/Community: ReLeaf Cville is expanding its Green Team Program to place more students into paid, hands-on urban forestry and climate resilience work. Transportation: VDOT scheduled an overnight I-64 west traffic shift near Hampton Roads Center Parkway as part of the Hampton Roads Express Lanes project.

Cannabis Policy: Gov. Abigail Spanberger, Sen. Lashrecse Aird, and Del. Paul Krizek announced a budget-process deal to create Virginia’s legal adult-use retail cannabis market, with sales set to begin July 1, 2027—aimed at consumer protections, testing standards, and a clearer path for small businesses and farmers. AI + Power Grid: Wood Mackenzie warns the AI data center buildout is outpacing grid development, raising technical, regulatory, and economic risk for projects and consumers; Northern Virginia is cited as having extremely tight available capacity. Water + Public Works: The Lincoln Memorial Reflecting Pool renovation is back in the spotlight as algae returned and “nano bubble” filtration work tied to a Trump donor’s company faces scrutiny, adding to a reported $14.7M price tag. Workforce + Education: Virginia’s Excel Center in the Roanoke Valley highlights adult education demand, with Labor Secretary Jessica Looman touring the program that offers pathways to high school completion plus support services. Drought Response: Gov. Spanberger urged voluntary water conservation as drought conditions worsen across Virginia. Local Development: Albemarle County moved to expand solar/battery rules ahead of a July 1 state deadline, showing how quickly localities are adjusting to new energy policy.

Virginia Housing & Real Estate: The National Association of REALTORS says pending home sales rose 3.8% month-over-month and 4.8% year-over-year in May, with gains across the Northeast, Midwest, South and West—an early sign of pent-up demand. Port & Shipping: Virginia’s Port of Virginia unveiled a deeper Norfolk harbor shipping channel, now the deepest on the U.S. East Coast, aimed at letting larger cargo ships transit with full loads. Data Centers & Water: Reporting on Virginia’s data-center buildout highlights how local governments have allocated at least 19.6 million gallons a day to Amazon for cooling—raising questions as the industry expands. Local Governance & Environment: Accomack County voted to remove Chesapeake Bay Preservation Act seaside requirements while adding state resiliency standards, shifting the rules for development along the coast. Food Safety: Clover Hill Dairy expanded a listeria-related cheese recall across multiple states, including Virginia, after links to illness and a death. Business & Tech: A Virginia-based firm is tied to the ongoing controversy over the Lincoln Memorial Reflecting Pool’s failed blue coating, with peeling material appearing days after a costly renovation.

Data Centers & Power Grid: NVIDIA backed FERC’s push to speed large-load grid connections, targeting utilities’ slow upgrade timelines as AI data centers and other heavy users pile into queues. Energy & Environment: Virginia’s Sterilization Services of Virginia in Henrico exceeded its ethylene oxide emissions limit after a roof check-valve failure, triggering about $50,000 in fines and tighter operating requirements. Housing & Consumer Protection: Zillow is hit with a federal antitrust suit and consumer fraud claims tied to alleged competition-killing deals and undisclosed referral practices that could raise costs for buyers and renters. Food Safety: Clover Hill Dairy expanded a multi-state cheese recall to its entire line over possible Listeria contamination, with reported illness and a death linked to the outbreak. Local Industry & Growth: Comstock appointed David Hirsh, a former Blackstone and Citigroup real estate leader, to its board. Public Works & Infrastructure: Virginia’s busiest general aviation airport, Washington Manassas (HEF), is poised to gain commercial service pending FAA certification. Business Operations: Precision Roll Grinders promoted Larry Butkovich to COO to oversee day-to-day operations across its manufacturing footprint. Community & Sustainability: Repair cafes are gaining traction in Virginia, aiming to keep broken items in use and cut landfill waste. Transportation: VDOT issued weekly traffic alerts for multiple districts, including I-95 work near Aquia/Garrisonville and Hampton Roads bridge-tunnel lane changes.

Renewables & Land Use: Gov. Spanberger signed Virginia’s first agrivoltaics law, defining how solar can coexist with active farming and keep land in production. Local Solar Rules: Accomack County moved to update zoning to match new state requirements for ground-mounted solar and expanded by-right battery storage near approved solar. Invasive Plant Oversight: A statewide survey found invasive species still being sold widely in Virginia retail garden centers, pushing for tighter rules on commercial viability. Animal Health Watch: Virginia’s state veterinarian issued guidance on New World screwworm after confirmed cases in Texas and New Mexico, emphasizing surveillance and sterile insect controls. Healthcare Access Tech: Virginia Tech students rolled out a Spanish-English translation tool at a Roanoke free dental clinic to improve patient-provider communication. Data Center Pressure: A new report says Virginia schools lost over $250M from data center tax breaks, while climate-risk modeling warns many data centers face flooding, wildfire, and heat exposure. Business & Workforce: A Gloucester man opened a precision aerial data business after drone training, pointing to growing demand for site analysis. Policy & Markets: Virginia advanced a revamped retail cannabis plan aimed at launching sales in July 2027 with capped retail licenses and lower initial taxes.

Energy & Grid Planning: Gov. Abigail Spanberger kicked off statewide public input for the 2026 Virginia Energy Plan, aiming to tackle high bills, rising demand, and grid reliability. Agriculture Meets Renewables: Spanberger signed bills defining “agrivoltaics,” setting a farmer-first framework for dual-use solar on working land. Manufacturing Jobs: Austrian skincare and nutrition firm RINGANA will invest $85M in Roanoke over five years, creating 435 jobs for its first U.S. HQ, production, and distribution. Defense & Innovation: The U.S. Army will host an industry day June 23 in Arlington for its Low-Cost Interceptor push, bringing together primes and startups on air and missile defense. AI/Data Centers Politics: Virginia Democrats are split over data center tax breaks, with lawmakers pressing for changes as the budget deadline looms. Cannabis Market: Spanberger and legislators agreed to launch a regulated adult-use retail cannabis market in July 2027, after a veto and budget negotiations. Local Business & Tourism: Buena Vista opened a new visitor center inside the Virginia Innovation Accelerator, and Abingdon named winners of its 2026 “Best of Abingdon” awards.

Defense & AI: Virginia-based Enabled Intelligence added 500,000 hours of Ukraine combat drone footage to train military AI, aiming to speed up real-world aerial recognition for contractors and the Pentagon. Data Centers & State Budget: Virginia’s data center fight is now a Democrat-on-Democrat showdown as lawmakers debate whether to keep major subsidies during looming budget negotiations, with Gov. Spanberger facing shutdown pressure. Energy Grid: AEP hinted it may reassess its membership in PJM, reflecting growing regulator and ratepayer frustration over grid expansion and load connections tied to data-center demand. Cannabis Market: Spanberger, Sen. Lashrecse Aird and Del. Paul Krizek reached a budget deal to launch a regulated adult-use retail cannabis market starting July 1, 2027, with licensing and enforcement to be built out first. Courts & Consumer Protection: A federal judge ruled nonparty executives can’t force arbitration against Virginia in a solar consumer deception case, limiting arbitration reach for state claims. Local Industry: Amazon is set to build a distribution center in New Kent County, adding to Virginia’s logistics growth. Health Facilities: Salem VA Health Care System received FY2026 non-recurring maintenance funding for HVAC, windows, fire systems, and workspace upgrades.

Cannabis Policy: Gov. Abigail Spanberger and lawmakers struck a deal to launch Virginia’s legal, regulated adult-use retail cannabis market on July 1, 2027, with up to 350 retail licenses and the possession limit rising from 1 ounce to 2 ounces. Energy & Utilities: A Reuters look at the U.S. grid’s reliability crunch says grid upgrades could top $1 trillion this decade, with power CEOs sitting on nearly $1 billion in stock-based pay as demand surges from data centers and AI. Regulatory Showdown: Virginia lawmakers are scrutinizing NextEra’s $66.8B acquisition of Dominion Energy, while the state’s review timeline and budget politics add pressure ahead of a possible shutdown. Budget Standoff: With June 30 looming, the House and Senate released competing budgets, still deadlocked over whether to end the data center sales tax exemption. Infrastructure Disruption: VDOT scheduled overnight full closures on I-464 north in Chesapeake for flyover ramp and bridge work. Local Business Growth: New River Electrical opened a Richmond office to expand Central Virginia infrastructure contracting. Public Safety: DOJ announced charges against five men in an alleged plot targeting the White House UFC Freedom 250 event. Workforce & Housing: Albemarle County supervisors will consider using remaining affordable housing funds for an employer-assisted housing pilot for county staff.