Localities weigh financial benefit, environmental impact of data centers
Localities in Virginia are grappling with the economic benefits and environmental impacts of data center development, particularly in Louisa County where Amazon is constructing two major campuses. Residents are reporting negative impacts from construction, leading to calls for a pause in development and reforms to the approval process. Meanwhile, county officials are embracing data centers as a means to shift the tax burden and fund infrastructure.
Louisa County, Virginia, is experiencing significant data center development, with Amazon constructing two major campuses, including the Northeast Creek Technology District near Lake Anna. Local resident Austin Newsom has reported substantial personal and professional disruptions due to the construction, citing dust, mud, and water discoloration, and a lack of communication from county officials or Amazon prior to the work.
The Piedmont Environmental Council (PEC) is advocating for a statewide pause in Virginia to reform the data center project approval and construction processes, citing concerns about power infrastructure planning. Concurrently, Louisa County's Board of Supervisors has proactively zoned land as a Technology Overlay District to attract data center development, aiming to shift the tax burden from residents to commercial entities and fund infrastructure like a new elementary school. Supervisors Duane Adams and Toni Williams highlighted a 15% decrease in the personal property tax rate as a direct benefit of this strategy.
Environmental concerns extend beyond construction, with worries about data centers' long-term power and water consumption. Greene County has halted its Tech Flex District plans due to inadequate long-term water supply. Dominion Power is constructing new transmission lines to power 26 data centers in Culpeper and Louisa, while Tenaska is building a 1.5-gigawatt power plant in Fluvanna. The Southern Environmental Law Center predicts adverse air quality impacts from these developments. In Albemarle County, proposed updates to existing ordinances were stalled due to public pushback against larger data center installations and a desire to await state-level regulations.