Chesterfield County halts new data centers and weighs cutting car tax rate nearly in half
Chesterfield County has halted all new data center development by amending its zoning ordinance, requiring conditional use permits and public hearings. This decision, aimed at reducing the residential tax burden, builds on three previously approved Google data center projects that are expected to generate substantial tax revenue. The county is now considering using this future revenue to significantly cut the car tax rate for residents.
Chesterfield County, Virginia, has implemented a halt on new data center development, following a decision by the Board of Supervisors to amend the zoning ordinance. This change eliminates the ability to build data centers by right, instead requiring developers to obtain a conditional use permit and undergo public hearings before the board. According to Deputy County Administrator Jesse Smith, the board has made it clear that they are not supporting any additional data centers beyond the existing three operational campuses and three approved Google data center projects.
Deputy County Administrator Matt Harris explained that the county's initial pursuit of data centers was a direct response to longstanding pressure to reduce the tax burden on residents. The three approved Google projects, which are now locked in and cannot be blocked, are projected to generate substantial revenue, potentially more than double the amount currently paid by the county's top taxpayer, Dominion Energy. Google estimates $300 million to $500 million per building once the campuses are fully operational in approximately ten years.
Harris also addressed concerns about Chesterfield turning into "Loudoun part two," emphasizing that the scale of data center development in Chesterfield will not come close to that of Loudoun County. The Board of Supervisors recently considered an ordinance to nearly halve the car tax rate, from $3.25 to $1.79, funded by the expected revenue from the approved Google data centers. However, the vote was deferred to the next meeting on September 23, with many members agreeing on the need for more public awareness and input from community meetings.