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byline: Kate Andrews

Va. lands back on top in CNBC survey

After downplaying his Democratic predecessor’s consecutive wins in CNBC’s America’s Top States for Business study, Gov. Glenn Youngkin found himself as Virginia’s top cheerleader on CNBC July 11, playing the commonwealth regained its crown as No. 1.

With this year’s win, the state has been named the nation’s top state for business a record six times, although it was the
first No. 1 ranking during Youngkin’s tenure. Last year, the Old Dominion scored second place behind North Carolina, but this year the Tar Heel State slid back to the No. 2 slot.

“How exciting and what an honor it is to have CNBC here recognizing Virginia as the top state for business,” Youngkin said in a live interview on the financial news cable network. “I think we work incredibly well together. Economic development is a team sport, and our administration has taken huge strides over the last 2 1/2 years to address some real areas of importance.”

Those include readying more sites for economic development, the governor pointed out. The 2024 CNBC rankings weighted infrastructure greatest this year, with the network noting that Virginia has a “wealth of shovel-ready sites the state offers for companies that want to build fast.” Virginia ranked third in the nation for infrastructure, in addition to retaining first place for education. Home to the world’s greatest concentration of data centers, the commonwealth also ranked fourth for artificial intelligence.

The CNBC win came during a busy week for Youngkin, who announced that LS GreenLink USA, a subsidiary of a South Korean cable manufacturer, plans to build a $681 million subsea cable manufacturing plant in Chesapeake that’s expected to create 338 jobs. The facility would produce cables used for offshore wind farms — the first such facility in the United States. The next day, the governor was on hand for a Dominion Energy announcement that the Fortune 500 utility issued a request for proposals for developing a small modular reactor at Louisa County’s North Anna nuclear power plant in the next decade.

Economic development has been one area where Republicans and Democrats can find some common ground, even when there are disputes over corporate tax cuts desired by the governor, or when projects are opposed by Democratic legislators, such as the failed Alexandria sports arena touted by Youngkin.

While Virginia still has a way to go to attract as many $1 billion-plus megaprojects as other states, clearly the governor’s focus — and funding — for site preparation has created momentum both in terms of business interest and media recognition.   

Appeals court reverses $2B judgment for Appian

The corporate espionage civil case between rivals Appian and Pegasystems is heading back to court, the Virginia Court of Appeals ruled Tuesday. The three-judge panel ordered a new trial, saying that Appian was improperly relieved of the burden of proving that Pega financially benefited from misappropriating Appian’s trade secrets.

In May 2022, McLean cloud computing firm Appian won a record-setting $2.03 billion award against Massachusetts-based Pega in Fairfax County Circuit Court, based on allegations that Pega used multiple methods to spy on its rival over eight years, from 2012 through May 2020. In a statement, Appian said it plans to appeal Tuesday’s decision to the Virginia Supreme Court.

In the original lawsuit, Appian claimed that Pegasystems hired Youyong Zou, an employee of a government contractor using Appian software, to provide Pega with access to the backend of that software. Pega says, however, that the software was available to Appian users.

Appian included Zou, a software architect, in the lawsuit, and he was ordered to pay Appian $5,000.

In the 2020 complaint, Appian claimed that it lost 201 customers and claimed $479 million in “unjust enrichment of Pega” between 2012 and 2020, but Pegasystems’ attorneys argued that the information gained by the company was not actually “trade secrets” because some of it was sourced to publicly available materials, according to the trial transcript.

Tuesday’s appeals court opinion authored by Judge Frank K. Friedman rejected Pega’s claim that “Appian failed to establish misappropriation of any trade secret as a matter of law. However, we agree with Pega that the trial court erred in granting [a jury instruction], which relieved Appian of its proper burden to prove causation between the alleged misappropriation and any damages.”

Moreover, the opinion reads, Appian was allowed to use Pega’s total sales during the eight-year period to prove unjust enrichment — but the trial court improperly blocked Pega “from showing that many of Pega’s total sales were in areas in which Appian did not even compete with Pega.”

The trial court also “abused its discretion” by not permitting Pega to attempt to authenticate software evidence during the trial. Instead, the circuit court judge excluded software because it was on “a different laptop than provided in discovery.” Finally, the appeals decision says that the trial court “should refrain from instructing the jury that the number of people with access to Appian’s platform is ‘not relevant.'”

The opinion concludes with an order for a new trial consistent with the appeals court’s ruling.

“We will appeal the ruling to the Supreme Court of Virginia and will seek to reinstate the verdict,” Appian said in a statement Tuesday. “We remain confident that the evidence of misappropriation and our right to corresponding damages will be properly addressed by Virginia courts.”

A Pega spokesperson said in response to the decision, “We are extremely pleased by today’s decision throwing out an award we believe was never rational. As the unanimous decision stated, ‘The trial court committed a series of errors that require us to reverse the judgment as to Appian’s trade secret claims.’ This ruling supports our view that the verdict was a result of a flawed trial on many fronts, including that we were prevented from showing that our software never adopted any Appian supposed trade secrets.

“As we’ve said from the beginning, the overturned judgment had the structural integrity of a skyscraper of cards, so it is no surprise it has collapsed. We applaud the court for seeing through Appian’s tactics to prevent the jury from hearing critical facts in this case.”

Liberty, Falwell Jr. reach global settlement

Liberty University and Jerry Falwell Jr. have reached a global resolution agreement that settles all three lawsuits between the Lynchburg private Christian university and Falwell, Liberty’s former president and chancellor who was forced to resign in 2020 in disgrace.

In a joint statement released Friday afternoon, Liberty and Falwell said that Liberty’s board of trustees agreed to pay Falwell “authorized retirement and severance under the various disputed agreements and in keeping with the law,” although it did not disclose an amount.

Falwell, in a federal lawsuit filed in March 2023, sued the university and the board’s executive committee for $8.58 million in retirement payments. He filed a second federal lawsuit in July 2023 demanding $5 million for what Falwell said was the university’s misuse of the image of his father, Baptist televangelist Jerry Falwell Sr., who founded Liberty in 1971. The settlement announced Friday also sets “the conditions under which the university will make use of Dr. Jerry Falwell Sr.’s name, image and likeness,” according to the joint statement.

Liberty, in Lynchburg Circuit Court, sued Falwell for $10 million in April 2021, claiming he had breached his contract and fiduciary duty, stemming from 2019 contract negotiations that yielded Falwell a salary increase and larger severance package. Liberty’s complaint claimed that Falwell did not disclose to the university’s board during those negotiations that a young Miami man was threatening to make public his yearslong sexual affair with Becki Falwell, Jerry Falwell Jr.’s wife.

Although Giancarlo Granda, the man the Falwells met at a Miami hotel in 2012 when Granda was 20, has denied trying to extort or blackmail the couple, his version of events — backed up by text messages and photos — came out in August 2020 in a Reuters interview, after which Falwell resigned. Granda claimed in the interview that Falwell knew about Granda’s affair with Becki Falwell from the start and watched the two have sex.

While Falwell has vehemently denied watching his wife and Granda, he has acknowledged his wife’s affair put the couple at risk of exposure, and he admitted trying to appease Granda with trips to New York and Virginia. Falwell also was involved in an investment in a Miami hostel that Granda managed, although Trey Falwell, Jerry and Becki’s son, was listed as the investor.

Liberty’s complaint included a photo of Granda meeting Donald Trump during the future president’s 2012 visit to Liberty University, as well as photos of Granda with the Falwells on a tour of the U.S. Capitol, in the Florida Keys and at their farm in Virginia. These, the lawsuit claimed, “were among the acts of appeasement that the Falwells used over the years to maintain Granda’s cooperative silence.”

Falwell, Liberty’s lawsuit claimed, “began to fashion a well-resourced exit strategy” in the 2019 contract negotiations, as his relationship with Granda began to deteriorate. For his part, Falwell said that the university’s board “made yet another attempt to defame me and discredit my record.”

At the time of his resignation, Falwell had served 13 years as Liberty’s president and chancellor, having become the school’s head after his father died in 2007; the younger Falwell had received praise for saving the school years earlier by bringing it out of debt. By the time he resigned, Liberty had one of the nation’s largest online college enrollments and a multibillion-dollar endowment. The school also was central to national Republican politicians seeking Christian evangelists’ endorsements, and Falwell made headlines when he endorsed Trump for president in 2016, a surprise given the candidate’s multiple divorces and other scandals.

Liberty’s lawsuit against Falwell claimed that the “Falwells knew they shared a unity of interests with Granda. They had an important goal in common: silence about the Falwells’ salacious acts. The Falwell[s] needed silence from Granda in order to safeguard their personal reputation, Jerry Jr.’s professional standing, and his employment with America’s leading evangelical university.”

Falwell, meanwhile, alleged that the university and various board members — including Jerry Prevo, who chaired the Liberty board and stepped in as interim president and chancellor following Falwell’s resignation — had defamed him in public statements. He also claimed in a filing in a federal lawsuit that his brother, Liberty Chancellor Jonathan Falwell, had gone back on recusing himself from the second federal lawsuit, in which Jerry Falwell Jr. claimed that the university was improperly using the likeness, signature and name of their late father.

The global settlement, though, appears to bring the years of accusations and ugliness to a close, according to the two parties’ statement Friday:

“Both the university’s Board of Trustees and Jerry Falwell Jr. sincerely regret the lengthy and painful litigation process, and each take responsibility for their part in the disputes. Falwell acknowledges and apologizes for the errors in judgement and mistakes made during his time of leadership. The Board of Trustees acknowledge and apologize for the errors and mistakes made on their part as well. The trustees and Falwell are committed to move forward in a spirit of forgiveness and with the hope of reconciliation in a Christ-honoring manner.”

In an email to the university community Friday, Liberty President Dondi E. Costin wrote that “about three years ago a prohibition was put in place that prevented employees from communicating with our former president and his wife about Liberty business or operations. That restriction is now lifted for employees of Liberty University and its affiliates. You are free to communicate with Jerry and Becki, including about Liberty University, just as you would with other alumni and members of the public.”

The couple are also “now free to be on Liberty property, attend our events and join us in the stands as they support their alma mater,” Costin wrote. “The time has come for our former president and his wife to be welcomed back to our campus.”

Costin added that the principals have “taken responsibility for their respective parts in the disputes and have apologized to each other.”

Both the joint statement and Costin’s letter say that the parties will not comment further on the matter.

Connecticut firm sues former Diamond District partners for $40M

A Connecticut-based developer, Republic Projects, has filed a $40 million lawsuit against its former partners in Richmond’s $2.44 billion Diamond District project, a city-backed mixed-use development that includes a replacement for the 40-year-old Diamond baseball stadium.

Republic Projects, the plaintiff in the lawsuit filed July 19 in Richmond Circuit Court, claims that Richmond-based Thalhimer Realty Partners (a Cushman & Wakefield | Thalhimer subsidiary) and Chicago-based Loop Capital cut Republic out of the development deal sometime between June and December 2023 and created their own development partnership, Diamond District Partners, behind Republic’s back.

Richmond City Council originally selected RVA Diamond Partners LLC, a joint venture including Republic, Thalhimer Realty Partners, Loop Capital Holdings and San Diego venue developer JMI Sports, as the developer for the Diamond District project.

Republic Projects is suing Thalhimer, Loop Capital, the Richmond-based Diamond District Partners limited liability company and four individuals, including Thalhimer principal Jason Guillot, who is the Diamond District’s lead developer and often deals directly with the City of Richmond on the project. The other defendants are Loop Capital Chairman and CEO James Reynolds Jr., based in Chicago, and Loop advisers Susan Cronin and Gregory Peck, who are based in Sherman Oaks, California.

The lawsuit claims that although the city government initially chose the RVA Diamond Partners joint venture, the defendants later “formed a different partnership between themselves … [and] separately began negotiating with the city for a development agreement.”

Known as Diamond District Partners, the new development team reached an agreement with the city “in or about April 2024,” the complaint says. “The terms of that development agreement are very different, and far more favorable to defendants than the development agreement which was approved by the city council on April 24, 2022.”

The suit also claims that the Diamond District Partners includes “approximately 20 of the 33 members” of the earlier RVA Diamond Partners entity, including Thalhimer, Loop Capital, Pennrose, Capstone Development and multiple Virginia-based partners: KEi Architects, 510 Architects, Poole & Poole Architects, Whiting-Turner Contracting, Breeden Construction, Capital Results, J&G Workforce, Richmond artist Sir James Thornhill, and the Richmond Black Restaurant Experience.

Republic claims in the suit that it paid for the 2022 site plan proposal designed by Skidmore, Owings & Merrill, and that Diamond District Partners submitted a plan in 2024 that “copies heavily” from the earlier plan.

The plaintiff argues that all defendants owe Republic “a duty of loyalty. … A partnership continues until it has been dissolved, wound up and then terminated,” and accuses the defendants of improper competition and improper exclusion from the new partnership. “Republic is entitled to receive its share of the net profits realized under the Diamond District Partners’ development agreement with the city,” the lawsuit continues, and requests a judgment of $40 million in damages, the costs of the lawsuit and other relief deemed proper by the court.

Guillot did not respond immediately to a request for comment Wednesday, and according to his email’s auto-reply message is currently out of the office. The other defendants in the lawsuit also were not able to be reached for comment immediately.

The 67-acre, $2.44 billion Diamond District project’s first phase is expected to cost $627.6 million, and includes a 9,000-capacity, $90 million-plus baseball stadium and a hotel with at least 180 rooms from a high-end brand, such as Hilton or Westin. The project also will include more than 3,000 rental and for-sale residential units, 935,000 square feet of office space, 195,000 square feet of retail and community space, and another hotel. 

In May, Richmond City Council approved a change in the financing of the development to keep the stadium on deadline, after lengthy delays following the March 2023 approval of the site plan. 

Davenport & Co., the city’s financial adviser, recommended issuing $170 million worth of general obligation bonds to finance the Diamond District’s stadium and first-phase infrastructure work, rather than community development authority bonds, as planned.

That would put the city on the hook for paying off the bonds if projected revenue falls short, although the new structure would also have economic benefits, including a lower interest rate that is expected to reduce costs by $215 million over the next 30 years. Also, if the bonds were issued by July 1, the state would have chipped in $24 million through its sales tax incentive program, but Richmond missed that deadline.

 

Batten donates $100M to expand W&M marine, coastal research

Jane Batten, the matriarch of a Hampton Roads family known for its philanthropy, has pledged $100 million to William & Mary to boost coastal and marine science research towards finding global solutions for flooding and sea-level rise, the Williamsburg university announced Wednesday. The newly named Batten School of Coastal & Marine Sciences will expand the Virginia Institute of Marine Science (VIMS) and allow it to hire more scientists whose research could have a worldwide impact, officials say.

Batten’s donation is the largest in the 331-year-old university’s history, and W&M officials say the nine-figure gift is “by a factor of four” the largest donation ever made to any research institution focused on marine and coastal science. The donation will be used to build out VIMS’ site on the York River in Gloucester Point, and hire more researchers who can examine the impact of sea-level rise, storm intensity, flooding and other climate-fueled impacts on coastal communities.

The university’s existing School of Marine Science, renamed for Batten as of Wednesday, is located at VIMS’ facility, and although the Batten School’s construction plans and timeline have not yet been set, the school will remain at the VIMS site across from Yorktown on the York River, the university said in its announcement.

According to W&M, Batten’s gift will also go toward the creation of a bachelor’s degree in coastal and marine sciences, in addition to existing graduate and doctoral degrees offered at VIMS. The State Council for Higher Education in Virginia (SCHEV) must approve the new undergraduate major. The university also plans to expand interdisciplinary courses on marine and coastal sciences that non-major students can participate in.

W&M also hopes to raise $100 million more through private, state and federal sources to complement Batten’s donation. According to President Katherine Rowe, about $50 million of Batten’s gift will go toward campus infrastructure, including new learning and research spaces, but the university is still determining whether to renovate existing structures, construct new buildings or pursue a combination of both.

“This gift propels us forward toward great promise and progress,” Batten said in a statement. “I am confident that this will spark significant change, building resilience in coastal communities in the commonwealth and across the globe for generations to come.

“I’m calling on fellow philanthropists, government leaders, alumni and friends to join me in taking action,” she added. “I’ve always believed that philanthropy is not just something you should do, it is something that is a privilege to do. I’m privileged to be able to give to something that will be a game-changer for the world.”

Jane Batten. Courtesy William & Mary’s Batten School of Coastal & Marine Sciences

A Virginia Beach resident, Batten is a former W&M board member, as was her late husband, Frank Batten, who was chairman and CEO of Landmark Communications and a co-founder of The Weather Channel. The Batten family — including the couple’s children, Dorothy and Frank Batten Jr. — have made significant donations to William & Mary, the Slover Library in Norfolk, Hollins University, Old Dominion University, the University of Virginia and other state institutions over the years.

VIMS, a state agency charged with conducting research and providing scientific data on Virginia’s waterways to the commonwealth, was started in 1940 and was integrated with William & Mary in 1979. Over the past decades, VIMS has researched how to maintain and grow Virginia’s oyster and blue crab populations, monitor and forecast sea-level rise, and identify causes and risks of water pollution, among other subjects of study. In 2021, W&M started its Vision 2026 water initiative, in which the university pledged to study solutions to build coastal resilience not just in Virginia but worldwide.

Rowe noted in an interview with Virginia Business that just in the commonwealth, approximately 5 million people live on coastlines, and “many more than that are affected by the watershed at the Chesapeake Bay. In the U.S., that’s 128 million, and globally, 3.2 billion human beings.

“It became really clear to me that there is no institution better positioned to address the environmental threats, the economic challenges that are faced in the world’s coastlines and oceans, and it was starting at that point 30 or more years ago,” Rowe added. “William & Mary and VIMS have been at the vanguard of that kind of impactful research for a long, long time. So we see the Batten School as powering at a much higher level the kinds of ‘science for solutions’ that William & Mary has been producing for decades, and to do that for Virginia, and more broadly to do that globally.”

Derek Aday, VIMS’ director and dean of the Batten School, said that the donation has “transformed every aspect of our mission generationally. This is not like naming a building that eventually is torn down. This will affect our research, our teaching, our advisory service for generations to come.”

Both Aday and Rowe say they hope there will be other philanthropists who follow Batten’s lead and contribute funding to the issue of global warming, coastal resilience and other key environmental factors the world faces.

“There will be imitators,” Aday said, “as there should be. This is the leading edge.”

Reports: Novo Nordisk in talks to buy Petersburg Ampac plant

Two South Korean media outlets have reported that the South Korean owner of Ampac Fine Chemicals may sell its manufacturing plant in Petersburg to Novo Nordisk, the Danish global pharmaceutical company.

Sources told The Korea Economic Daily that the Seoul-based manufacturing conglomerate SK Group, which purchased Ampac in 2018 for a reported $576 million, is in “final-stage talks” to sell the 600,000-square-foot plant for $216 million to Novo Nordisk, with the deal possibly completed by the end of August, according to a June 25 article.

The Korea Herald reported June 26 that the potential sale could be part of a push on the Danish drugmaker’s part to increase production of its popular weight-loss drugs Wegovy and Ozempic. In late June, Novo Nordisk announced plans to invest $4.1 billion to build a second manufacturing facility in Clayton, North Carolina, adding 1,000 jobs.

A U.S. spokesperson for Novo Nordisk said Wednesday that the company has not yet announced any plans in Petersburg.

“SK Pharmteco does not discuss potential business transactions, whether rumored or confirmed,” Audrey Greenberg, the company’s chief marketing and communications officer, said in a statement Thursday. “However, we are constantly exploring strategic opportunities to strengthen our leading position as a CDMO. Our commitment lies in expanding our capabilities in small molecule APIs, cell and gene therapies, and analytical services. By doing so, we aim to offer our clients a broader range of solutions and, ultimately, improve patients’ lives worldwide.”

SK Pharmteco is SK Group’s contract drug-making subsidiary, with contract development and manufacturing organization (CDMO) plants in California, Texas and Virginia. In 2018, SK Holdings purchased California-based Ampac Fine Chemicals, then owned by H.I.G. Capital, a private equity firm. H.I.G. had owned the company since 2014 and was responsible for acquiring the Petersburg plant reportedly under consideration for sale to Novo Nordisk. In 2019, SK Group consolidated Ampac Fine Chemicals with its biotech divisions in South Korea and Ireland to form SK Pharmteco.

Ampac, founded in 1945, arrived in Petersburg in 2019, restarting a former pharmaceutical plant that had been closed for five years. Between 2020 and 2022, Ampac doubled production capacity and tripled its employee base to 150 workers. Currently, the company has three production buildings and 16 manufacturing lines making active pharmaceutical ingredients in Petersburg.

Ampac’s presence was a draw for other pharmaceutical companies — notably Phlow and Civica Rx — now with facilities in Petersburg. Civica, a Utah-based nonprofit generic drugmaker, is set to begin producing medications for general and local anesthesia, pain management and antibacterial therapies created with ingredients produced by Ampac and Phlow by late 2024. The three companies, along with Virginia Commonwealth University’s Medicines for All Institute, are partners on a federally funded $354 million contract to reduce U.S. dependence on foreign supply chains and promote domestic medication production. The contract, awarded in May 2020, finished its initial four-year phase in May, and is now in the first of six potential one-year renewal options.

In 2022, the 16-partner Alliance for Building Better Medicine, which includes the three pharma companies, won a $52.9 million Build Back Better Regional Challenge grant from the U.S. Commerce Department’s Economic Development Administration to address the national need for domestically produced drugs. In October 2023, the EDA designated the Richmond-Petersburg metropolitan statistical area an Advanced Pharmaceutical Manufacturing Tech Hub, qualifying it to apply for additional funding, but the region missed out on $502 million in federal grants announced in July.

Framatome Inc. taps new CEO and president

Starting Aug. 8, Anthony “Tony” Robinson will take over as the next CEO and president of Framatome Inc., the North American subsidiary of the French nuclear equipment, services and fuel producer.

A former executive for Framatome and BWX Technologies, Robinson replaces Katherine Williams, who retired after 20 years working for the Lynchburg-based nuclear reactor and fuel manufacturer. She became CEO and president in July 2023, succeeding Gary Mignogna, the company’s leader for 45 years.

Robinson, who has about 35 years of experience in North America’s nuclear energy field, was previously employed at Framatome and its predecessor, Areva, for about 25 years, including overseeing installed base products and engineering, customer accounts and building of new nuclear facilities across North America.

Most recently, Robinson was senior vice president and chief nuclear officer of Structural Integrity Associates, a North Carolina company providing engineering services for the energy industry. He also was vice president of the U.S. nuclear energy group at BWXT in Lynchburg. A registered engineer in Ohio, Robinson has a bachelor’s degree in mechanical engineering from the University of Akron and is a board member for the Central Virginia YMCA in Lynchburg.

“We are happy to welcome a proven leader and seasoned engineer as CEO of Framatome Inc.,” Bernard Fontana, CEO of the French parent company, said in a statement. “The promising growth of the North American nuclear industry, fueled by public and private support for clean energy, positions Tony to lead Framatome North America with excellence, ensuring seamless operations and continued support for our customers.”

In April, Framatome broke ground on a $49.4 million expansion at its Mill Ridge Road facility in Lynchburg, where Operational Center of Excellence employees service and maintain nuclear reactors in North America, and develop ideas for small nuclear reactors. The expansion is expected to add 515 jobs in Lynchburg, where it employs approximately 1,350 people.

Framatome has had a presence in Lynchburg since 1989, and it moved its North American headquarters from Charlotte, North Carolina, to Lynchburg in 2018.

 

SCC names next chief administrative officer

Joseph F. Damico has been named the Virginia State Corporation Commission’s next chief administrative officer, replacing Samuel A. Nixon Jr., who is retiring this month.

A longtime public servant, Damico was most recently deputy director of the Richmond Department of Public Works and was director of the state Department of General Services, according to the Friday SCC announcement. Damico will be responsible for budget, human resources, computer technology, data security, public relations, procurement and facilities management divisions at the commission, which oversees Virginia’s utilities, insurance firms, state-chartered financial institutions, a health benefit exchange and securities, among other institutions.

At DGS, Damico was responsible for management and maintenance of the Virginia Capitol Square’s grounds and buildings in Richmond, including the construction and renovation of the new General Assembly building and repairs to the state Capitol. During his six-year tenure as director, the agency had more than 700 employees and an annual operations budget of $270 million, in addition to a $500 million capital budget.

Nixon retires after nine years with the SCC; he was previously the state’s chief information officer and director of the Virginia Information Technologies Agency. From 1994 to 2010, Nixon was a Republican state delegate who represented Chesterfield County.

Virginia is CNBC’s Top State for Business for record sixth time

Virginia regained its crown as the No. 1 state in CNBC’s annual America’s Top States for Business rankings released Thursday, winning the top spot for a record sixth time.

The cable business news network once again praised Virginia for having “the nation’s best education system and policies that give companies room — both literally and figuratively — to grow.” In particular, the Old Dominion ranked first place in the nation for education, third for infrastructure and fourth for artificial intelligence, with CNBC noting that the commonwealth is home to the world’s largest concentration of data centers, through which more than 70% of the world’s internet traffic travels.

“But where Virginia’s infrastructure really shines is in the wealth of shovel-ready sites the state offers for companies that want to build fast,” the network said. “The state’s economic development arm has certified dozens of sites across the commonwealth, promising that all utilities and infrastructure can be in place within 18 months.”

Virginia ranked fifth for business friendliness, with CNBC noting that the commonwealth wasn’t “friendly enough” to land a pet project of Virginia Gov. Glenn Youngkin, a failed proposal to build a $2 billion arena in Alexandria for the Washington Capitals and Wizards. (Democratic state Sen. Louise Lucas, chairman of the Senate Finance and Appropriations Committee and a key opponent of the deal, tweeted Thursday, “We wouldn’t be the number one state for business if we had wasted billions of taxpayer dollars on a vanity arena project. You’re welcome Wannabe VP Pick for Tyrannical Trump.”)

CNBC also pointed out that though the commonwealth was ranked No. 9 in the nation for workforce, it has a problem with outmigration, with “too many workers moving out [and] not enough moving in.” And it noted that while the commonwealth is rich in data centers, that’s caused a strain on the state’s power grid.

Virginia scored 1,595 out of a possible 2,500 points in the network’s Top States study, finishing in the top 50% or better in each of 10 major categories. The commonwealth came in second to North Carolina in 2023, but this year, the two states switched positions, with North Carolina ranking second. In 2022, Virginia ranked third overall.

In 2021, Virginia took the top spot in the annual rankings of business-friendly states for a second, consecutive time. Virginia also won the top ranking in 2019, 2011, 2009 and 2007, the first year CNBC began ranking the states. CNBC did not rank the states in 2020 due to the pandemic.

“How exciting and what an honor it is to have CNBC here recognizing Virginia as the top state for business,” Virginia Gov. Glenn Youngkin said during a live interview from Virginia Beach on CNBC’s “Squawk Box” Thursday. “I think we work incredibly well together. Economic development is a team sport, and our administration has taken huge strides over the last 2 1/2 years to address some real areas of importance. Talent is always top of the list, and our talent accelerator is now rated the top talent accelerator in America.

“Business-ready sites and infrastructure continue to be a top need for businesses, and we’ve allocated $550 million over the last three years to make sure that we have shovel-ready sites. And then, finally, of course, power — our all-American, all-of-the above power plan is taking big strides. Yesterday, we announced a big step for a potential siting of a small modular reactor in Virginia to be the first.”

Youngkin added that he believes $5 billion in tax cuts in the first two years of his term were key to Virginia’s success in attracting and retaining companies. “We made Virginia’s business climate even better by streamlining regulations and cutting the red tape,” the governor said, adding that the state has 240,000 more people employed than it did before his term began in January 2022. He also noted that former members of the military — including 700,000 veterans living in Virginia — are “one of the things that make Virginia great.”

Asked if Virginia is in play this year in the presidential election, Youngkin said he believes it is, even though President Joe Biden won Virginia by 10 points over former President Donald Trump in 2020. “The next year,” the governor said, “we’re able to win it by two.” Youngkin bypassed a question about whether he believed he was still a possible Trump vice presidential candidate pick, but said he is “very enthusiastic about the prospects for President Trump and whoever he chooses as his running mate.”

Highlighting the state’s divided government, House of Delegates Speaker Don Scott lauded Youngkin and Democratic legislators Sen. Louise Lucas and Del. Luke Torian, who chair the two legislative bodies’ finance committees. “We invested in our future — our children. Virginia is back on top,” Scott tweeted. “We raised minimum wages and gave teachers pay raises! More importantly, we protected reproductive freedom and bodily autonomy.”

CNBC based this year’s rankings on 128 metrics — up from 86 last year — across 10 categories: workforce; infrastructure; cost of doing business; economy; life, health and inclusion; technology and innovation; business friendliness; education; access to capital; and cost of living. Infrastructure was the most heavily weighted category this year.

“With six wins — and three in the last five years — Virginia is our most decorated state. It’s easy to see why,” CNBC special correspondent Scott Cohn said. “In both Republican and Democratic administrations, the state has shown how much it cares about business, and how carefully it can listen to companies. Plus, year after year, Virginia offers the training, talent, and the infrastructure for success.”

According to CNBC, Texas, Georgia and Florida rounded out the top five spots in this year’s rankings.

“Being named America’s Top State for Business is a testament to the incredible progress being made throughout the Commonwealth, not least by the many thousands of businesses who call Virginia home,” Virginia Economic Development Partnership President and CEO Jason El Koubi said in a statement. “This recognition is years in the making, and I am incredibly grateful to all of our state, regional and local partners that contributed to this distinction.”

Barry DuVal, president and CEO of the Virginia Chamber of Commerce and a former state secretary of commerce and trade, issued a statement as well: “Virginia’s ranking as the Top State for Business reaffirms our conviction that Virginia is the premier state for business. It highlights our strong education system, availability of business-ready sites and Virginia’s commitment to economic development and a culture of innovation and entrepreneurship. This recognition also supports our strategic approach to grow Virginia’s position as the leading state for business through our targeted policy recommendations in Blueprint Virginia 2030.”

Another former state secretary of commerce and trade, Todd Haymore, now managing director of Hunton Andrews Kurth’s Global Economic Development, Commerce, and Government Relations Group, said, “Over 25 years in public and private sector economic development, I’ve learned that the fundamentals like education, workforce, infrastructure and site readiness are what really matter, and that is where Virginia shines. Virginia is back in the top spot because we invest in the fundamentals, maintain a bipartisan commitment to pro-growth and pro-business policies, and because we have really smart, talented people working to create jobs and opportunity, from the governor’s office to the legislature, and from VEDP all the way down to the local level.”

Virginia’s category rankings in the 2024 CNBC Top States for Business were as follows:
  • First place — Education
  • Third — Infrastructure
  • Fifth — Business friendliness
  • Eighth — Access to capital
  • Ninth — Workforce
  • 10th — Economy
  • 15th — Technology and innovation
  • 19th — Cost of living
  • 19th — Quality of life
  • 24th — Cost of doing business

Virginia Business Deputy Editor Kate Andrews contributed to this article.

Dominion Energy issues RFP for small modular reactor at North Anna

At an event with Virginia Gov. Glenn Youngkin and other state officials at its North Anna nuclear power plant in Louisa County, Dominion Energy announced plans Wednesday to potentially develop a small modular reactor (SMR) at North Anna.

Dominion officials said they were issuing a request for proposals for the SMR from nuclear technology companies, stressing that it was not a commitment to build an SMR at North Anna, but the first step in evaluating the feasibility of doing so.

The terms of the RFP are being kept private, according to Dominion, but a group of SMR manufacturers have been notified of the request.

“For over 50 years, nuclear power has been the most reliable workhorse of Virginia’s electric fleet, generating 40% of our power and with zero carbon emissions,” said Dominion Energy Chair, President and CEO Robert M. Blue. “As Virginia’s need for reliable and clean power grows, SMRs could play a pivotal role in an ‘all-of-the-above’ approach to our energy future. Along with offshore wind, solar and battery storage, SMRs have the potential to be an important part of Virginia’s growing clean energy mix.”

In a statement, Youngkin said, “The commonwealth’s potential to unleash and foster a rich energy economy is limitless. To meet the power demands of the future, it is imperative we continue to explore emerging technologies that will provide Virginians access to the reliable, affordable and clean energy they deserve. In alignment with our all-American, all-of-the-above energy plan, small nuclear reactors will play a critical role in harnessing this potential and positioning Virginia to be a leading nuclear innovation hub.”

Gov. Glenn Youngkin signed a bill July 10, 2024, at the North Anna nuclear power plant in Louisa County, joined by Lt. Gov. Winsome Earle-Sears, Virginia lawmakers and representatives of Dominion Energy. Photo by Kate Andrews | Virginia Business
Gov. Glenn Youngkin signed a bill July 10, 2024, at the North Anna nuclear power plant in Louisa County, joined by Lt. Gov. Winsome Earle-Sears, Virginia lawmakers and representatives of Dominion Energy. Photo by Kate Andrews | Virginia Business

Under a tent by the 50-year-old North Anna nuclear power station, Youngkin signed SB 454, a state Senate bill with bipartisan support that permits Dominion to petition the State Corporation Commission at any time by the end of 2029 for the approval of a rate adjustment clause to recover development costs for an SMR.

Legislators in Southwest Virginia and Youngkin have been bullish on the prospect of building a SMR in Virginia as part of the Virginia Clean Economy Act passed in 2020, which requires the state’s two major electric utilities — Dominion and Appalachian Power — to shift to carbon-free, renewable energy sources such as wind and solar power for electricity generation in the next 26 years. Youngkin has pushed for VCEA to allow natural gas and nuclear energy to be part of the state’s energy production; in 2022, he announced a goal to build an SMR in Southwest Virginia in the next decade.

Located between Richmond and Charlottesville, North Anna is far from Southwest Virginia, but Del. Terry Kilgore, R-Gate City, was still enthusiastic about Wednesday’s announcement, which he attended. “We’re going to get there with Southwest. We realized we may be second or third down the line.”

Kilgore said he hopes the state’s first SMR — a smaller, less expensive version of a large nuclear power plant, producing up to 300 megawatts per unit, about one-third of the capacity of conventional nuclear reactors — will take less than 10 years to develop and build. However, as of 2023, only China and Russia had successfully built operational SMRs.

Asked if he had any views on non-U.S.-based companies bidding for Dominion’s RFP, Youngkin said Wednesday he expects the utility “will have a wide-open technology request for proposals, and then they will work to make sure that they have the very best. I have to say … that U.S. companies are at the forefront right now of providing the technology and small modular reactors, and that’s who I’d expect to win.” He added that Virginia nuclear companies sometimes are part of joint projects in developing SMRs.

“The process of designing and building an SMR is a multipurpose team,” he added. “I believe that there will be Virginia companies deeply involved. I also expect companies that will be building these reactors in the future will very much want to locate here in Virginia.”

Blue noted in the presentation that he is “unabashedly” a cheerleader for nuclear energy, which produces about 90% of the zero-carbon energy Dominion produces annually, as well as 40% of all energy produced by the utility, at its North Anna and Surry nuclear plants.

He said that Dominion hopes to develop the state’s first SMR at North Anna in the 2030s, and added that the law signed Wednesday caps SMR development cost recovery to no more than $1.40 per month for a typical residential customer.