AGP Executive Report

Data Center Debate: Virginia lawmakers are preparing bills for January that could pause new data center approvals, including a proposed three-year statewide moratorium. The debate is intensifying as Google considers a Roanoke County project and concerns grow over power use, pollution and local impacts. Business Expansion: M.C. Dean plans to invest $412.5 million in two Caroline County manufacturing facilities, with the project expected to create 1,950 jobs. Fuel Costs: Gov. Abigail Spanberger authorized temporary on-road use of dyed diesel to ease pressure on farmers, loggers and haulers facing high fuel prices. Power Infrastructure: Virginia was awarded up to $50 million in federal funding for grid upgrades, as electricity demand climbs. Business Climate: Virginia’s AAA bond rating was affirmed by all three major ratings agencies, a sign of continued confidence in the state’s finances.

Data Centers: Google was confirmed as the company behind a proposed Roanoke County project, as Virginia lawmakers weigh a pause on new approvals and Rep. Eugene Vindman pushes to keep data center power costs off household bills. Power Grid: Virginia could receive up to $50 million in federal funding to rebuild Appalachian Power’s New London–Otter transmission line, aimed at easing bottlenecks and meeting rising demand. Business Climate: The Richmond Fed reports Central Virginia small businesses are optimistic, though confidence is uneven. Tourism and Gaming: Virginia casinos generated more than $97.5 million in September. Workforce: A renewed five-year federal grant will fund Virginia Tech’s Talent Search program, supporting 891 students a year with college and career guidance.

Data Center Debate: Google is considering a data center at Roanoke County’s Wood Haven Technology Park as Virginia lawmakers weigh proposals to pause or restrict new projects. The push for a moratorium comes amid concerns over power demand and local oversight; one state regulator said it lacked authority to stop a data center’s day-long generator run. Energy and Utilities: A proposed 23% electric-rate increase for parts of Southwest Virginia is headed to regulators, while the proposed $67 billion Dominion–NextEra merger faces scrutiny over potential customer costs. Development and Jobs: A $100 million Henrico project will add 279 apartments, and M.C. Dean plans to open modular power-systems manufacturing facilities in Virginia.**

Data Center Pressure: Frederick County supervisors voted unanimously to remove data centers as an allowed use, while a state senator has proposed a three-year moratorium. A federal emergency order letting PJM use backup generators underscores concerns that electricity demand is outpacing new supply. Cannabis Taxes: Fairfax County is moving ahead with Virginia’s maximum 3.5% local tax on recreational marijuana sales as the state prepares to launch its retail market. Business Expansion: M.C. Dean plans a $412 million Virginia expansion, with two factories expected to add 1,950 jobs. Energy Deal: Dominion Energy’s proposed $67 billion merger with NextEra faces scrutiny over potential utility-bill impacts as regulators review the deal. Mining Technology: Lynchburg-based Innovative Wireless Technologies is leading a $25 million project in a $73 million federal initiative; Virginia Tech is expected to receive $4.6 million to help test advanced mining systems.

Manufacturing & Jobs: M.C. Dean plans a $412.5 million manufacturing expansion in Caroline County, while a Norfolk maritime repair company is set to add 40 jobs. Data Centers & Power: A Virginia senator has proposed a three-year statewide data center moratorium, and Rep. Ben Cline says developers should cover their own costs. Dominion’s Cumberland Energy Center proposal is not yet ready for approval, as debate grows over power demand and who pays. Infrastructure: Virginia’s Commonwealth Transportation Board secured $89.7 million in federal loans for I-81 upgrades, a key freight corridor. Business Climate: Fairfax County is looking to cut red tape for local businesses, as companies and developers face scrutiny over permitting delays and rising costs.

Jobs and Investment: M.C. Dean plans a $412.5 million manufacturing expansion in Caroline County, expected to create 1,950 jobs. State Finances: Virginia’s AAA bond rating was affirmed by all three major ratings agencies, underscoring the state’s strong credit standing. Data Centers: Opposition is mounting over power costs and local impacts: Stafford County postponed a project hearing after staff recommended denial, and a proposed $750 million western Virginia center fell through. Transportation: Virginia secured $89.7 million in federal loans for I-81 upgrades aimed at easing freight bottlenecks. Business Leadership: Skyline National Bank named Peter Pequeno II executive vice president and chief strategy officer, with responsibilities spanning strategy, acquisitions and AI initiatives.

State Finances: Virginia’s AAA bond ratings were affirmed by all three major agencies, a sign of the state’s strong credit and disciplined budgeting. Jobs and Investment: M.C. Dean proposed a $412.5 million Caroline County expansion expected to create 1,950 jobs. Data Centers: A new state framework tightens disclosure rules for proposed projects, while a $750 million data center plan in Dublin fell through after developers missed a land-purchase deadline. Local Revenue: Fairfax County supervisors are considering a 3.5% tax on recreational marijuana sales, which are set to begin in Virginia in July 2027. Infrastructure: Hurt received $8.3 million in federal disaster funding to help rebuild its water treatment plant and support future development.

Data Centers & Power: Stafford County postponed a data-center hearing after staff recommended denying most applications, underscoring growing local resistance as electricity demand and utility costs become campaign issues. Major Investment: M.C. Dean plans to invest $412.5 million in Caroline County, creating 1,950 jobs. State Finances: Virginia’s AAA bond rating was reaffirmed by all three major agencies. Virginia Brands Abroad: Virginia-based Five Guys is expanding in China, opening its first Beijing locations as U.S. fast-food chains court younger consumers. Defense Jobs: A Norfolk maritime repair company plans to add 40 jobs, while Raytheon’s Portsmouth operation won a Navy research contract for radar upgrades.

State Finances: Virginia kept its top AAA bond ratings from all three major agencies, a sign of fiscal strength that can help the state borrow at lower cost. A separate review found state general-fund spending varied widely by locality, reflecting funding formulas and differences in residents’ needs. Power and Data Centers: A federal emergency order directed PJM to dispatch generation and authorize backup power through Oct. 16 amid tight reserves, with the Dominion zone among those facing pressure. Data centers are also drawing scrutiny: a report says Virginia’s tax exemptions cost the state $1.6 billion, while the state ranks first in readiness for AI data centers. Business and Jobs: A Norfolk maritime repair company plans to add 40 jobs, while Virginia Beach-based Haynes Furniture and The Dump are closing after nearly 130 years. Construction also reached a milestone at Live! Casino & Hotel Virginia in Petersburg, a major entertainment project expected to bring new business to the region.

Virginia Innovation: Virginia Tech’s Smart Airspace project tested electric and autonomous aircraft in Southwest Virginia, while a Central Virginia Better Business Bureau partnership is bringing license-tracking technology to businesses. Development & Energy: Henrico supervisors are set to consider six development proposals and nearly $10 million in construction contracts. Meanwhile, residents are challenging data center growth, and the proposed Dominion-NextEra merger faces scrutiny over utility rates. Virginia’s transformer industry is booming as electricity demand climbs. Jobs & Industry: A Norfolk maritime repair company plans to add 40 jobs. Virginia also released $67 million in energy funds to help about 1,000 homes lower bills. Business Shifts: Haynes Furniture and The Dump are closing after nearly 130 years, a major blow to the region’s retail landscape. In Occoquan, former corporate marketer Ben Pagel has turned a side business in collectible books into a new bookstore.

Data Center Oversight: Virginia DEQ cited Google after sediment from construction at its Chesterfield data center reached a stream and wetlands. Google says it has addressed most violations and is strengthening runoff controls. Energy and Utilities: Gov. Spanberger is backing an expansion of community solar, which can help renters and others without suitable rooftops cut power bills. Meanwhile, Fairfax County residents raised concerns about higher bills at a hearing on Dominion Energy’s proposed merger with NextEra; supporters pointed to investment and job opportunities. Development: Affordable housing projects are moving ahead with $97.8 million in financing for a Newport News development and a construction milestone for Alexandria’s $120 million Samuel Madden Homes redevelopment. Business Growth: Electricity demand is fueling a boom in Virginia’s power-transformer industry, while a company has opted not to finalize a New River Valley commerce-park contract that included a proposed data center. Retail: South Korean fried-chicken chain BHC has filed plans for a Chantilly restaurant, its second Northern Virginia location.

Defense Manufacturing: Anduril’s planned $3.7 billion Maryland shipyard and a Navy contract worth up to $2.9 billion could benefit Virginia’s Newport News Shipbuilding, which will receive components for Virginia-class submarines. The facility is expected to begin operating by 2030. Energy & Utilities: A packed Virginia State Corporation Commission hearing highlighted concerns over Dominion Energy’s proposed $67 billion merger with NextEra, including the potential effect on customer bills. In Fairfax, residents also raised concerns about data centers and electricity costs. Retail: Haynes Furniture and The Dump are closing after nearly 130 years, ending a long-running Virginia retail business. Petersburg Development: Live! Casino & Hotel Virginia marked a major construction milestone, with new restaurants announced as the project advances. Local Investment: Virginia communities including Waynesboro, Mount Jackson and Woodstock received Main Street grants for downtown improvements.

Defense Industry: Reston-based General Dynamics named President Danny Deep its next CEO, effective Jan. 1, 2027. Phebe Novakovic will become executive chairman; the contractor reported $52.6 billion in 2025 revenue. Data Center Growth: AI facilities are running into grid connection delays and cooling limits. In Virginia, concerns over data center demand and possible higher utility bills are adding pressure to the debate over Dominion Energy’s proposed merger with NextEra. Small Business: Former teacher Elisabeth Biswas opened Orchard & Ink, an independent bookstore in Virginia Beach, turning a long-held business idea into a new shop selling books, gifts and cider. Rural Health: Centra Southside Community Hospital is among maternity units that have closed as hospitals brace for Medicaid funding cuts, raising concerns about access to childbirth care in rural communities. Retail Rules: A bill awaiting President Trump’s signature would let retailers round cash purchases to the nearest five cents when exact change isn’t available, easing penny shortages.

Utility Merger: Lt. Gov. Ghazala Hashmi opposes Dominion Energy’s proposed $67 billion merger with NextEra, citing residents’ concerns about rising electric bills and insufficient protections. The debate is sharpening as Virginia communities also push back against data centers’ power demands and local impacts. Regional Economy: Hampton Roads is growing, but a new ODU report finds the region’s workforce has shrunk and consumer confidence has fallen. Virginia Business: Richmond-based Hardywood has made its first major acquisition, buying Charlottesville rival Starr Hill Brewery. Defense Industry: Anduril plans a $6.6 billion investment in a Maryland shipyard to expand production of components for Virginia-class submarines, a major boost to the broader regional defense supply chain.

Defense Hiring: Reston-based Blue Sky Innovators plans to grow its workforce from about 120 to more than 150 by the end of 2027 as it expands its secure facility for defense and intelligence clients. Energy and Data Centers: A large crowd raised concerns about electricity bills and data-center demand at a public hearing on Dominion Energy’s proposed $67 billion merger with NextEra Energy; Virginia’s lieutenant governor opposes the deal. Retail Closures: Virginia Beach-based Haynes Furniture and The Dump will close all stores after 128 years as owner E.J. Strelitz retires. Business Expansion: A Norfolk maritime repair company plans to add 40 jobs, while Richmond brewer Hardywood has acquired Crozet-based Starr Hill in a major Virginia beer deal.

Retail: Virginia Beach’s Haynes Furniture and The Dump will close all stores after 128 years, ending a family business as executive chairman E.J. Strelitz retires. Data Centers: A company is eyeing a possible data center in Roanoke County, while Loudoun officials say Amazon needs county approval for a proposed campus at the VSTC site. Energy: A proposed $67 billion Dominion-NextEra merger drew questions and opposition at a Virginia hearing, including concerns about customer rates. Brewing: Richmond-based Hardywood has acquired Crozet’s Starr Hill, consolidating two of Virginia’s best-known craft breweries. Infrastructure: More Peninsula residents are set to gain high-speed internet through a network extension. Development: Petersburg’s $1.4 billion Live! Casino and Hotel Virginia marked a construction milestone and announced new restaurants.