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Virginia Becomes the Data Center Capital of the World

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A massive data center located in Virginia surrounded by greenery

Virginia, October 26, 2025

Virginia has positioned itself as the global leader in data centers, attracting major tech companies with its advantageous location and business-friendly policies. This transformation turns rural areas into modern digital hubs, boosting economic growth. However, the rapid expansion raises pressing environmental issues over energy use and conservation. Inside Climate News investigates this remarkable change, highlighting both the economic benefits and the environmental challenges that come with it.

Henrico County, Virginia

As of January 10, 2025, Henrico County requires all data center construction to obtain a provisional use permit (PUP), including projects in the White Oak Technology Park. This applies retroactively to projects that have been rezoned but have not yet received final site plan approval or begun construction.

Previously, large facilities within certain industrial or office zones could proceed without board-level approval. These new requirements apply retroactively to projects that have been rezoned but have not yet received final site plan approval or begun construction. County officials indicated that previously approved and permitted projects already under development may not be subject to all new conditions, depending on their stage in the review pipeline.

This regulatory shift reflects a growing trend across Virginia, where local communities are increasingly scrutinizing data center developments due to concerns over noise, water usage, aesthetics, and long-term sustainability. While Virginia lacks formal statewide legislation specifically regulating data center location, siting, noise, water usage, or energy impact, localities are taking proactive measures to manage the industry’s growth. Henrico County’s decision is part of a broader pattern of jurisdictions reevaluating their data center policies to balance economic development with community well-being.

Background Context

Data centers are facilities that house computer systems and associated components, such as telecommunications and storage systems. They are essential for the operation of cloud computing, data storage, and various internet services. The surge in data center construction in Virginia is driven by the state’s strategic location near major internet hubs and favorable business policies, making it an attractive destination for tech giants. However, this rapid expansion has raised environmental and community concerns, leading to increased regulatory scrutiny and opposition from local residents.

Recent Developments in Virginia’s Data Center Industry

  • Prince William County Digital Gateway Project Halted
    A proposed 2,100-acre corridor for 37 data centers in Prince William County was invalidated by a county judge due to procedural errors in the rezoning process. The ruling has cast uncertainty over the project’s future, with potential appeals pending.
  • Fairfax County Tightens Data Center Regulations
    Fairfax County has implemented stricter zoning ordinances for data centers, including requirements for equipment enclosures, setbacks from residential areas, and architectural standards, aiming to mitigate visual and noise impacts.
  • Amazon Withdraws Louisa County Data Center Proposal
    Amazon Web Services withdrew its application for a 7.2 million square foot data center in Louisa County following strong community opposition, highlighting the growing resistance to large-scale data center projects in rural areas.
  • Henrico County’s $1 Billion Data Center Campus
    Iron Mountain has acquired a 66-acre site in Henrico County to develop a major data center campus, expected to cost over $1 billion and generate significant tax revenue for the county.
  • Stack Infrastructure’s $10 Billion Data Center in Fredericksburg
    Stack Infrastructure and Silver Companies are planning a $10 billion data center in Fredericksburg, Virginia, with the Fredericksburg City Council approving a 250-acre Technology Overlay District to facilitate the development.

Conclusion

Henrico County’s decision to require provisional use permits for data center construction signifies a broader trend in Virginia toward more stringent regulation of the data center industry. While these developments may impact the pace of data center expansion, they also reflect a growing emphasis on balancing technological growth with environmental sustainability and community interests.

FAQ

What are the new regulations in Henrico County regarding data centers?

As of January 10, 2025, Henrico County requires all data center construction to obtain a PUP, including projects in the White Oak Technology Park. This applies retroactively to projects that have been rezoned but have not yet received final site plan approval or begun construction.

Why is Henrico County implementing these new regulations?

The county is responding to growing concerns over noise, water usage, aesthetics, and long-term sustainability associated with rapid data center expansion. The new regulations aim to balance economic development with community well-being.

How does this decision fit into broader trends in Virginia?

Henrico County’s decision is part of a statewide pattern where local communities are scrutinizing data center developments due to environmental and community concerns, leading to increased regulatory scrutiny and opposition from residents.

What is the significance of data centers in Virginia’s economy?

Data centers are crucial for cloud computing, data storage, and various internet services. Virginia’s strategic location near major internet hubs and favorable business policies have made it an attractive destination for tech giants, contributing significantly to the state’s economy.

What are the potential impacts of these new regulations on data center development?

The new regulations may slow the pace of data center expansion in Henrico County and potentially in other parts of Virginia. However, they also reflect a growing emphasis on balancing technological growth with environmental sustainability and community interests.

Key Features of Henrico County’s Data Center Regulations

Feature Description
Provisional Use Permit (PUP) Requirement All data center construction must obtain a PUP, including projects in the White Oak Technology Park. Applies retroactively to projects that have been rezoned but have not yet received final site plan approval or begun construction.
Regulatory Context Reflects a statewide trend of local communities scrutinizing data center developments due to environmental and community concerns, leading to increased regulatory scrutiny and opposition from residents.
Economic and Community Balance Aims to balance economic development with community well-being by addressing concerns over noise, water usage, aesthetics, and long-term sustainability associated with rapid data center expansion.



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VIRGINIA STAFF WRITER
Author: VIRGINIA STAFF WRITER

The VIRGINIA STAFF WRITER represents the experienced team at constructionvanews.com, your go-to source for actionable local news and information in Virginia and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the Virginia Build Expo, major infrastructure projects, and advancements in construction technology showcases. Our coverage extends to key organizations like the Associated Builders and Contractors of Virginia and the Home Builders Association of Virginia, plus leading businesses in construction and legal services that power the local economy such as CMiC Global and Williams Mullen. As part of the broader network, including constructioncanews.com, constructionnynews.com, and constructiontxnews.com, we provide comprehensive, credible insights into the dynamic construction landscape across multiple states.

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