U.Va.’s planned data center expands $30 million amid statewide debate over energy use
The University of Virginia is expanding its Fontaine Research Park data center by $30 million to accommodate growing AI and high-performance computing demands, bringing the total project cost to $102 million. This expansion occurs amidst broader statewide debates and new regulations in Virginia concerning data center energy and water consumption, as well as local zoning changes and moratorium considerations in several counties.
The University of Virginia is proceeding with a significant expansion of its research data center at Fontaine Research Park, adding roughly $30 million to the project's budget for a total of $102 million. This expansion, driven by increasing demand for artificial intelligence and high-performance computing, will accommodate U.Va. Health Information Technology within the facility's third floor, increasing its size to 53,000 square feet and capacity to 17 megawatts. Construction is anticipated to commence in 2027 and conclude by early 2029.
The project unfolds as Virginia grapples with the rapid growth of the data center industry and its extensive demands on land, electricity, and water infrastructure. The state's General Assembly recently enacted a data center electricity consumption tax, and the State Corporation Commission approved new electricity rates requiring data centers to fund certain transmission infrastructure. Additionally, the Virginia Department of Environmental Quality is developing criteria for "cooling water scarcity areas" that will mandate air cooling or recycled water use for new data centers in Eastern Virginia, and Senate Bill 553 now requires water users to report consumption by data centers.
Several Virginia counties are also revising their approaches to data center development. Prince William County's Board of Supervisors recently rejected a large data center campus and is revising its zoning to require special use permits for new projects. Loudoun County is considering a pause on new data center development to revise its zoning, and Henrico County tightened its regulations in June due to rising electricity costs. It remains uncertain how these evolving state and local policies will specifically impact the University of Virginia's new research facility.