Virginia, October 19, 2025
Virginia is experiencing a significant boom in its tech sector, particularly with the rise of data center developments. This growth is largely driven by one dominant company, which is managing the majority of these construction projects. The surge in digital infrastructure builds is setting the state on a path to becoming a national leader in this rapidly evolving industry, highlighting the importance of technology in the modern economy.
Sterling, Virginia
Virginia’s data center industry is experiencing unprecedented growth, solidifying the state’s position as a national leader in digital infrastructure.
Record Number of Data Center Permits Issued
In the first nine months of 2025, Virginia issued permits for 54 new data centers, marking a 16% increase from the previous year. Amazon led this expansion with 28 new planned facilities, aiming to meet the growing demand for computing and data storage.
Major Investments in Data Center Infrastructure
Several significant projects are underway to bolster Virginia’s data center capacity:
- EdgeCore Digital Infrastructure is investing approximately $17 billion to develop a 3.9 million-square-foot data center campus in Louisa County. This facility will support over 1.1 gigawatts of power, catering to hyperscale clients.
- Amazon has filed permits for an 11-building data center campus in Caroline County, spanning 1,143 acres. The project aims to establish a capacity of at least 770 megawatts by 2027, contributing to Amazon’s broader initiative to invest $35 billion in Virginia’s data center development by 2040.
- PowerHouse Data Centers is developing the PowerHouse Pacific Data Center in Sterling, Virginia. The 265-megawatt facility, covering 1.2 million square feet, is expected to be completed by late 2026 to early 2027.
Strategic Acquisitions and Partnerships
To support the growing demand for data centers, strategic acquisitions are being pursued:
- Blackstone Energy Transition Partners has agreed to acquire the 774-megawatt Potomac Energy Center in Loudoun County for approximately $1 billion. This acquisition highlights the importance of power plants located near data centers to meet the increasing energy needs.
- Dominion Energy has issued a Request for Proposals to evaluate the feasibility of developing a small modular reactor (SMR) at its North Anna site. SMRs are considered more cost-effective and quicker to deploy than traditional large-scale nuclear reactors, potentially replacing coal plants and catering to localized energy needs.
Regulatory Developments
Local governments are implementing measures to manage data center growth:
- Henrico County has mandated that all data center construction now requires a provisional use permit. This regulation applies retroactively to previously approved projects not yet completed, aiming to provide more oversight and community input.
- Prince William County approved the Digital Gateway project, which plans to create up to 37 data centers over 2,000 acres near the Manassas National Battlefield. Despite community opposition due to environmental concerns, the project was approved, emphasizing the balance between development and preservation.
Community Engagement and Concerns
Community response to data center developments varies:
- Louisa County residents opposed Amazon’s proposal for a 7.2 million-square-foot data center, leading the company to withdraw the application. Concerns included potential noise pollution, loss of agricultural land, and rapid development.
- Alexandria has approved an electricity transmission line and towers to serve a proposed data center, reflecting the city’s commitment to supporting technological infrastructure while addressing energy needs.
Conclusion
Virginia’s data center sector is experiencing rapid expansion, driven by substantial investments and strategic initiatives. While this growth offers economic opportunities, it also presents challenges related to energy infrastructure, environmental impact, and community engagement. Ongoing dialogue and thoughtful planning are essential to ensure sustainable development in the state’s digital infrastructure.
Frequently Asked Questions
What is the significance of the 54 new data center permits issued in Virginia in 2025?
The issuance of 54 new data center permits in the first nine months of 2025 represents a 16% increase from the previous year, highlighting Virginia’s growing role in supporting the digital economy. ([indexbox.io](https://www.indexbox.io/blog/record-data-center-permits-hit-virginia-in-2025/?utm_source=openai))
What are the key features of EdgeCore Digital Infrastructure’s data center campus in Louisa County?
EdgeCore Digital Infrastructure is investing approximately $17 billion to develop a 3.9 million-square-foot data center campus in Louisa County, capable of supporting over 1.1 gigawatts of power, catering to hyperscale clients. ([virginiabusiness.com](https://virginiabusiness.com/17b-louisa-county-data-center-edgecore/?utm_source=openai))
How is Dominion Energy addressing the growing energy demands of data centers in Virginia?
Dominion Energy has issued a Request for Proposals to evaluate the feasibility of developing a small modular reactor (SMR) at its North Anna site, aiming to provide cost-effective and quick-to-deploy energy solutions for data centers. ([reuters.com](https://www.reuters.com/business/energy/dominion-energy-calls-proposals-develop-smrs-2024-07-10/?utm_source=openai))
What regulatory changes have been implemented in Henrico County regarding data center construction?
Henrico County now requires all data center construction to obtain a provisional use permit, applying retroactively to previously approved projects not yet completed, to enhance oversight and community involvement. ([datacenterfrontier.com](https://www.datacenterfrontier.com/hyperscale/article/55296394/henrico-county-virginia-moves-to-slow-data-center-growth?utm_source=openai))
What were the community concerns regarding Amazon’s proposed data center in Louisa County?
Residents opposed Amazon’s proposal for a 7.2 million-square-foot data center due to potential noise pollution, loss of agricultural land, and rapid development, leading the company to withdraw the application. ([virginiamercury.com](https://virginiamercury.com/2025/07/28/amazon-pulls-louisa-county-data-center-proposal-after-strong-resistance/?utm_source=openai))
Key Features of Virginia’s Data Center Expansion
| Feature | Details |
|---|---|
| Number of New Data Center Permits Issued in 2025 | 54 |
| Amazon’s Planned Data Centers in Virginia | 28 |
| EdgeCore’s Investment in Louisa County | $17 billion |
| Size of EdgeCore’s Data Center Campus | 3.9 million square feet |
| Dominion Energy’s Proposed SMR Location | North Anna site |
| Regulatory Change in Henrico County | Provisional use permit requirement for data centers |
Deeper Dive: News & Info About This Topic
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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.
