Henrico rolls up red carpet for data centers
Henrico County, Virginia, has significantly restricted new data center development by amending its zoning ordinance, moving away from its previous pro-development stance. This decision follows years of welcoming data centers and addresses resident concerns regarding electricity demands, noise, and environmental impacts. The county is now focusing its economic development efforts on pharmaceutical and advanced manufacturing sectors.
Henrico County, Virginia, a significant data center hub in the greater Richmond region, has implemented new zoning restrictions that make it considerably more difficult to build new data centers. The county Board of Supervisors amended a zoning ordinance in June 2025, eliminating by-right development for data centers in industrial, business, and office districts, a stark reversal from its previous policy of actively encouraging their construction.
This policy shift comes after residents voiced concerns about data centers' high electricity demands, potential impacts on utility costs, noise from backup generators, and possible air and groundwater contamination. Prior to the change, companies like QTS Data Centers received major rezoning approvals, with QTS cleared to build 17 data centers across two sites. Since the ordinance change, only Centra Logistics has applied for a provisional-use permit for a data center project, which was subsequently denied, leading Centra to propose a warehouse and distribution center instead.
The revised ordinance now mandates public hearings for new data center projects and includes a minimum 500-foot setback and buffer from residential properties, along with operating limits on backup generators to mitigate noise and emissions. Henrico County Economic Development Authority Executive Director Cari Tretina indicated the county's economic development priorities have shifted to attracting pharmaceutical manufacturers, advanced manufacturing in aeronautics and astronautics, and finance and insurance businesses.