Pittsylvania data center project approved with more investment and jobs than previously announced — as long as tax breaks remain in place
Officials in Danville and Pittsylvania approved an AI data center project by Stack Infrastructure at the Berry Hill megasite, outlining a $100 billion investment and 2,500 new jobs over 30 years. The project's viability is contingent on Virginia's data center tax exemption remaining in place, which is currently a subject of heated debate in the General Assembly. Local residents expressed concerns about water usage and other environmental impacts, while officials highlighted the economic benefits and the region's capacity to support the development.
Officials from Danville and Pittsylvania County, Virginia, have unanimously approved a local performance agreement with Stack Infrastructure for a massive AI data center project at the Berry Hill megasite. The agreement details a $100 billion investment and the creation of 2,500 jobs with average salaries exceeding $80,500 over a 30-year period, significantly higher than initial projections.
However, the project's success is heavily reliant on the continuation of Virginia's data center sales and use tax exemption, which is set to expire in 2035 but faces a proposal in the General Assembly to end it prematurely in 2027. This debate has created a deadlock between the House and Senate over the state budget. Matt Rowe, Pittsylvania County's economic development director, emphasized that the project is dependent on the state honoring existing commitments and warned that an early termination of the tax exemption could severely disadvantage the development. Kevin Hughes, chief external affairs officer for Stack Americas, echoed this, calling the exemption "critical to the creation of the Virginia market."
The agreement also includes stipulations for job creation requirements and local tax payments, with Stack expected to pay a minimum of $48.5 million annually once all 2,990 acres are purchased. The Pittsylvania County Board of Supervisors is expected to establish a static tax rate for data center equipment. While local officials view the project as a "game-changer" for the region, potentially leading to lower taxes and affordable housing, community members raised concerns about water usage, other environmental impacts, and transparency during the public meeting.