Data center industry professionals deliver informational session

The Southern Virginia Regional Alliance organized an informational seminar in Danville, Virginia, on May 6, to educate regional economic developers, business leaders, and local officials on data center development. The event, held at the Institute for Advanced Learning and Research, brought together industry professionals to discuss the opportunities and challenges of bringing data centers to the Pittsylvania County/Danville region and other rural areas of Virginia. While Northern Virginia is already a major data center hub, experts like Vince Barnett of the Virginia Economic Development Partnership noted the state's capacity and developer interest in expanding into southern, more rural areas. Keynote speaker Elizabeth Rafferty, director of government affairs with Hunton Andrews Kurth, LLP and part of the Data Center Coalition, highlighted Virginia's role in the digital economy, citing data centers as a significant economic driver due to federal infrastructure proximity, reliable energy access, and predictable policy. However, expansion into rural areas, as seen with a past Balico, LLC proposal in Pittsylvania County, often faces community opposition over concerns about public health, water consumption, utility rates, noise, and environmental impacts. Speakers, including Mecklenburg County Administrator Alex Gottschalk and David Manley of the Industrial Development Authority of Wythe County, presented case studies of economic benefits, with Mecklenburg County attributing 45% of its real estate assessment base to data centers. They emphasized the importance of local governments developing strategic plans for utilizing potential revenues and being intentional about site selection. The session also addressed public concerns regarding utility costs and water usage, with experts noting industry efforts to ensure data centers pay their fair share and innovate with water-efficient cooling methods and renewable energy. Discussions also touched upon the state legislative environment, with Rafferty noting significant policy conversations in the Virginia General Assembly, including debates over sales tax exemptions for data centers. The article mentions Loudoun County's past zoning issues as a cautionary tale, prompting changes, and Pittsylvania County's Regional Industrial Facilities Authority authorizing a new zoning level. Experts urged local leaders to work closely with utility companies and vet projects thoroughly, acknowledging the industry's need for confidentiality while also calling for improved transparency in communication with communities.