What to know about the data center planned in Appomattox County

What to know about the data center planned in Appomattox County

News ClipNewsAdvance.com·Appomattox County, VA·9/3/2026

The Appomattox County Board of Supervisors approved a performance agreement with AVAIO Digital for a proposed $3 billion data center, despite the project being permitted by right and not requiring board approval. The development, called "Project Hercules," faces community opposition due to concerns about electricity costs, water use, noise, and air pollution, while an air quality permit application is pending with the Virginia DEQ.

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Gov: Appomattox County Board of Supervisors, Appomattox County Economic Development Authority, Virginia Department of Environmental Quality, Campbell County, Amherst County, Lynchburg

The Appomattox County Board of Supervisors approved a performance agreement with AVAIO Digital for a proposed $3 billion data center known as "Project Hercules." The vote for the performance agreement was held on Monday, with Supervisor Trevor Hipps casting the sole dissenting vote. This agreement allows AVAIO Digital to receive annual payments based on tax revenue generated by the project once the county begins collecting those taxes.

The project, which will span nearly 450 acres at 267 Industrial Park Lane, did not require a special permit, public hearing, or board approval because data centers were already permitted by right at the site. Board Chairman John Hinkle stated that supervisors lacked the authority to halt the project and instead focused on negotiating operating protections for the county. Dominion Energy is slated to provide electricity, with the facility projected to be operational by 2027.

While supporters, including Supervisor Nathan Simpson, highlight the potential for substantial tax revenue and high-paying jobs, residents and opponents have voiced significant concerns. These include the impact on electricity costs, water usage, noise, and air pollution. Critics also claim that county officials failed to adequately inform and involve the public in the project's early stages.

Currently, an AVAIO subsidiary has applied to the Virginia Department of Environmental Quality (DEQ) for an air quality permit for the site's backup generators. A public comment period for this permit is scheduled to begin on September 11, with a DEQ decision expected by mid-December. The article notes that neighboring Campbell and Amherst counties, as well as the city of Lynchburg, have already revised their zoning regulations to mandate additional approvals for future data center developments.