A standard virtual warehouse policy is one of the two scaling policies available for multi-cluster warehouses in Snowflake. The other policy is economic. A standard policy aims to prevent or minimize queuing by starting additional clusters as soon as the current cluster is fully loaded, regardless of the number of queries in the queue. This policy can improve query performance and concurrency, but it may also consume more credits than an economic policy, which tries to conserve credits by keeping the running clusters fully loaded before starting additional clusters. The scaling policy can be set when creating or modifying a warehouse, and it can be changed at any time.
Reference:
Snowflake Documentation: Multi-cluster Warehouses
Snowflake Documentation: Scaling Policy for Multi-cluster Warehouses