Virginians Question Power-Hungry Data Centers’ Expansion

Newton’s third law indicates that every action produces an equal and opposite reaction. In Virginia politics, that is showing up in the push-and-pull over data centers.

The state is already peppered with data centers, and developers are rolling out plans to build more. In almost every location, local residents quickly rally to oppose their expansion.

“Virginia hosts the largest data center market in the world and is home to 35% of all known hyperscale data centers worldwide,” according to the Virginia Economic Development Partnership. “Virginia offers an exemption from retail sales and use tax for qualifying computer equipment purchased by data centers that meet statutory investment and employment requirements.”

A debate over whether to keep that tax break, which is in place through 2032, held up approval of the state budget for months. In the end, lawmakers and the governor agreed to maintain the break, but they will increase taxes on the energy that data centers consume to raise revenues.

A recent report from the Virginia State Corporation Commission, which regulates utilities in the state, provides a preview of the scope of the problem. Electric utility Dominion Energy has approved 111 new data center projects that it said will be connected to the grid by the end of 2031. It also has 200 more projects in the approval process. If all these data centers were connected, they could draw 70 gigawatts of electricity, enough to power more than 60 million homes.

Amid the concerns over power needs, protests against the spread of data centers are becoming more frequent. Last week, dozens of citizens converged on the Virginia Capitol grounds to demand a pause on permits for data centers. “If you won’t pass the guard rails we need, then you must put an immediate pause on all state data center permitting,” activist Sarah Ahmed of the Virginia League of Conservation Voters told WTVR. “Until then, we are watching and we are organizing.”

Kathryn Hatam traveled from Botetourt County to attend the rally. Google wants to build a massive facility in the county, where it would be the sixth largest in the country and could use 2 million gallons of water daily. That raises concerns. “Our Spring Hollow Reservoir, which is a smaller reservoir that serves the greater area, is 19 feet below pond level,” because of the state’s ongoing drought, Hatam told WTVR.

In Goochland County, land-acquisition company Tract has filed a pre-application for a conditional use permit that would allow it to build the Tuckahoe Technology Park along Route 6. Last November, the county approved a Tech Overlay District that allows the construction of massive data centers in the region. Tract plans to hold a community meeting next Thursday at Goochland High School, where it is likely to hear complaints from nearby residents.

In May, county and local officials agreed to a massive project at the Berry Hill megasite. Stack Infrastructure, the company developing the site, expects it to be a $100 billion investment that will eventually create 2,500 high-paying jobs. Matt Rowe, economic development director for Pittsylvania County, said the project “would represent one of the most lucrative single economic development projects in the U.S. for the host locale.”

In Loudoun County, a builder plans to build a taller-than-usual data center. “The three-story design provided a balance between real estate utilization, construction cost, and future growth flexibility,” the company writes. “Most of the multi-story data centers within ‘Data Center Alley’ are limited to 2-stories due to the prevalence of air-cooled systems and the lift limitations of refrigerant-based systems. Though multiple cooling architectures were considered, an innovative solution was ultimately developed to efficiently serve a three-story data center.”

This week, Franklin County residents demanded details about “Project Flash,” which may involve building data centers. County leaders haven’t provided any details about the development. “As the people, we should have the right to know when they’re going to make these decisions,” Danae Crosby told WSLS.

Prince William County is losing a pair of proposed projects: the Dulles Cloud South data center and the 1,760-acre Digital Gateway. Supervisors voted against allowing rezoning for Dulles Cloud South, while legal challenges blocked Digital Gateway. The county already contains more than 40 data centers, and more may be in the works.

Both of Virginia’s U.S. senators told WDBJ this year that they are concerned about data centers. However, neither support a federal moratorium on the facilities.

“I think that they need to make sure that they’re not overusing water. I need to make sure that their backup generators are not adding to pollution in the region,” Democrat Mark Warner, who is running for reelection, told the TV station in March.

Virginia’s data center policy will be handled at the state and local level for the foreseeable future.