Localities race to attract data centers despite residents' concerns

Virginia localities are grappling with the rapid expansion of data centers, which are proposed near sensitive historical sites, farmlands, and cemeteries, straining local governments' ability to regulate industrial land use. This growth is tripling energy demands on Dominion Energy's grid, necessitating extensive infrastructure overhauls for power and water supply, and raising concerns about noise, pollution, and zoning challenges. While localities possess tools to mitigate these impacts, economist João Ferreira of the University of Virginia Weldon Cooper Center noted that the lure of increased tax revenues often tempts governments to relax regulations, leading to a "race to the bottom" where data centers choose financially convenient locations. Environmental advocates and land preservationists, including the Piedmont Environmental Council led by Christopher Miller, are advocating for a moratorium on new data center proposals, citing Virginia's already high concentration of such facilities. Miller emphasizes the vast land footprint required for data centers, which extends significantly beyond the buildings themselves to accommodate necessary infrastructure. Dominion Energy has reported "unprecedented" growth, processing applications for 70 gigawatts of electricity primarily for new data centers, which would nearly triple its peak energy load and cost billions in infrastructure upgrades, according to Mark Christie of William & Mary Law School. Christie suggests the General Assembly must address tax subsidies for data centers and generation policies. State budget negotiations are stalled over a Senate proposal to end data centers' sales and use tax exemption, which saved them $928 million in 2023, with House lawmakers and Governor Abigail Spanberger aiming to preserve the exemption while ensuring fair energy contributions. Without a statewide plan, communities are fighting in courtrooms and rezoning hearings. The American Battlefield Trust and local landowners successfully sued Prince William County, leading to the Virginia Court of Appeals striking down a rezoning for the Prince William Digital Gateway, a massive proposed data center campus near Manassas National Battlefield Park. The Prince William County Board of Supervisors subsequently decided not to appeal, marking a significant victory for opponents. Similar legal action by the American Battlefield Trust and landowners aims to halt the Wilderness Crossing development in Orange County, which includes a data center complex near Civil War battlefields. In Culpeper County, community resistance in Brandy Station led to the withdrawal of data center proposals near the new Culpeper Battlefields State Park after the planning commission recommended denial. The Coalition to Save Culpeper continues to advocate for mitigating impacts, while revelations of private coordination between town planners and developers, often involving non-disclosure agreements, highlight a lack of transparency and public participation in the approval process across Virginia. University of Mary Washington professor Eric Bonds's research corroborates the common use of NDAs, leading to growing voter backlash against politicians who approve projects without community involvement.