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Virginia’s Economy Shows Resilience Amid Pessimism

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A skyline representing Virginia's economy with technology and manufacturing elements.

Virginia, October 23, 2025

Virginia’s economy is displaying remarkable strength and resilience, countering the negative forecasts about its future. Key driving sectors, notably technology and manufacturing, are fostering consistent growth which positions the state favorably in the national market. This positive economic trend reveals not just stability but the potential for further development, showcasing Virginia as a robust contender for business and investment opportunities.

Richmond, Virginia: Surge in Data Center Construction and Infrastructure Developments

Richmond, Virginia – In the past 48 hours, Richmond has witnessed significant advancements in construction and infrastructure, underscoring the city’s rapid growth and modernization efforts.

Across the city, data center capacity has surged, supported by major technology interests, with wider implications for the region’s economy and infrastructure. The following developments highlight Richmond’s rapid evolution in data storage capacity and related infrastructure, along with notable state-level policy changes and regional projects.

Data Center Expansion

Richmond’s data center capacity has surged from 100 MW to over 800 MW in the first half of 2025, making it the fastest-growing U.S. data center market. This growth is driven by major tech companies, notably Amazon, which has filed permits for 28 new data centers in Virginia, bringing its total to 205 facilities in the state, a 15% increase from 2024. Of these new centers, 48 are classified as “hyperscale,” each consuming 40 MW or more. The data center sector significantly impacts Virginia’s economy, with estimates showing 74,000 jobs, $5.5 billion in labor income, and $9.1 billion in GDP generated annually. While the benefits are substantial, the rapid expansion has raised environmental and community concerns. Projects like the Prince William Digital Gateway, a $24.7 billion development, have faced delays due to local opposition and legal challenges.

Infrastructure Developments

The Virginia Department of Transportation (VDOT) has released a weekly travel advisory outlining potential disruptions during this period. Motorists are encouraged to check the latest updates on traffic and road work through the 511Virginia website or by using the free 511Virginia mobile app. These resources provide personalized traffic alerts and access to traffic cameras. VDOT also shares updates on social media. Drivers can follow the Richmond District on X at @VaDOTRVA for timely information.

Off-Site Construction Standards Adoption

Virginia has become the first state to adopt the International Code Council and Modular Building Institute’s 1200 and 1205 standards for off-site construction. This adoption aims to create uniformity in the off-site construction process, reflecting the state’s commitment to modernizing construction practices.

Upcoming Projects

Construction is underway for the Eastern Shore of Virginia Rail Trail, a dedicated, paved bicycle and pedestrian rail trail currently under construction on the Eastern Shore of Virginia. When completed, it will cross Northampton and Accomack Counties, running 49.1 miles from Cape Charles to Hallwood along the right of way of the abandoned Bay Coast Railroad. Construction on the first 3.5 miles of the trail, running from downtown Cape Charles to U.S. Route 13 and Cheriton, began in April 2025 and is expected to complete by Fall 2026.

Conclusion

Richmond’s recent construction and infrastructure developments highlight the city’s rapid growth and modernization efforts, positioning it as a key player in Virginia’s economic and technological landscape.

Frequently Asked Questions

What is driving the surge in data center construction in Virginia?

The surge is primarily driven by major tech companies, notably Amazon, which has filed permits for 28 new data centers in Virginia, bringing its total to 205 facilities in the state, a 15% increase from 2024.

How does Virginia’s data center capacity compare to other U.S. markets?

Richmond’s data center capacity has surged from 100 MW to over 800 MW in the first half of 2025, making it the fastest-growing U.S. data center market.

What are the economic impacts of data centers in Virginia?

Data centers contribute significantly to Virginia’s economy, with the industry estimated to contribute 74,000 jobs, $5.5 billion in labor income, and $9.1 billion in GDP to the state annually.

What environmental and community concerns are associated with data center expansion?

The rapid expansion has raised environmental and community concerns, with projects like the Prince William Digital Gateway facing delays due to local opposition and legal challenges.

What is the Eastern Shore of Virginia Rail Trail?

The Eastern Shore of Virginia Rail Trail is a dedicated, paved bicycle and pedestrian rail trail currently under construction on the Eastern Shore of Virginia. When completed, it will cross Northampton and Accomack Counties, running 49.1 miles from Cape Charles to Hallwood along the right of way of the abandoned Bay Coast Railroad. Construction on the first 3.5 miles of the trail, running from downtown Cape Charles to U.S. Route 13 and Cheriton, began in April 2025 and is expected to complete by Fall 2026.

What are the new off-site construction standards adopted in Virginia?

Virginia has become the first state to adopt the International Code Council and Modular Building Institute’s 1200 and 1205 standards for off-site construction. This adoption aims to create uniformity in the off-site construction process, reflecting the state’s commitment to modernizing construction practices.

Key Features of Recent Construction Developments in Richmond, Virginia

Feature Details
Data Center Expansion Richmond’s data center capacity has surged from 100 MW to over 800 MW in the first half of 2025, making it the fastest-growing U.S. data center market.
Off-Site Construction Standards Virginia has become the first state to adopt the International Code Council and Modular Building Institute’s 1200 and 1205 standards for off-site construction.
Eastern Shore Rail Trail Construction is underway for the Eastern Shore of Virginia Rail Trail, a dedicated, paved bicycle and pedestrian rail trail currently under construction on the Eastern Shore of Virginia.

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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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