Danville sets ground rules for potential data center projects amid rising interest

Danville, Virginia, is moving to establish strict ground rules for future data center projects, anticipating potential development interest. City Manager Ken Larking noted that while previous data center deals haven't materialized, the city is now proactively defining where and how such facilities could operate within its limits. The Danville Planning Commission has already approved a proposal outlining several restrictions, including a minimum 150-acre site requirement, a ban on locating data centers in industrial parks, and a 500-foot buffer from residential areas. All equipment would also be mandated to operate indoors, adhering to local noise ordinances. While data centers promise significant tax revenue—potentially millions with a proposed 1.25-cent tax rate—Larking highlighted substantial infrastructure challenges. Only one location near the Goodyear site meets the proposed criteria, but even this site would likely necessitate a new power substation and address a current two-to-three-year timeline to develop sufficient water capacity for cooling. City leaders emphasize that immediate data center development is not expected, but these rules are critical for future guidance. The Danville City Council is scheduled to vote on incorporating these new rules into the city code at its May 5 meeting.