One data center project pulled and another delayed in Hanover, as supervisors reinstitute equipment tax

Hanover County, Virginia, has experienced a busy period of data center related actions, including the withdrawal of one major project, the deferral of another, and the reinstatement of the county's equipment tax for data centers. New York-based LS Power officially withdrew its zoning request for a campus of three to four data center buildings on 200 acres at 10165 Old Ridge Road last month. The reasons for the withdrawal remain unclear, and LS Power did not respond to inquiries.

Separately, the Hanover Board of Supervisors voted unanimously to reinstate the county’s data center equipment tax rate at 45 cents per $100 of assessed value. This move reversed an earlier decision to eliminate the rate from the upcoming fiscal year 2027 spending plan, which had aimed to potentially introduce a new rate of up to $3 per $100. Supervisor Sue Dibble suggested that the board's finance committee should further examine a potential rate increase, noting that a higher rate than neighboring localities could impact the type of data center companies attracted to Hanover. She compared Hanover's rate to Henrico's ($2.60 per $100) and Chesterfield's (24 cents per $100).

In other developments, the Hanover Planning Commission unanimously deferred consideration of WestDulles Properties' Iron Horse data project until next month. WestDulles Properties is seeking zoning approval for data center facilities on 78 acres, part of a larger 180-acre campus near the Hanover-Ashland line. This is the latest iteration of a project proposal, following a similar plan rejected by Hanover supervisors last year. Additionally, the supervisors recently denied a data center development proposed by Tract on a 430-acre site on Mountain Road, though Tract is proceeding with a 1,200-acre campus near Ashland that received zoning approval in 2024.