RICHMOND — Former Sen. Chap Petersen, D-Fairfax, remembers being "the lone wolf" in opposing a lucrative state tax exemption for the data center industry in the Virginia Senate.
Former state Sen. Chap Petersen, D-Fairfax, left, is seen with Sen. Creigh Deeds, D-Bath, on Jan. 26, 2023. Petersen says the data center industry is in retreat after the Virginia Court of Appeals threw out rezoning decisions for the Prince William Digital Gateway this week.
Proponents say data centers bring localities enormous revenues and opportunities. Opponents raise concerns about their big demands for power and compatibility with neighborhoods.
Data center developers are now eyeing the Richmond area. While counties welcome the sites' tax revenues, residents' concerns have prompted developers to withdraw some proposals and Henrico imposed further oversight.
The state's telecommunications infrastructure, tax breaks, workforce and officials' welcoming attitude have helped make Virginia the world's data center capital.
The 451 now running in Virginia, home to the largest concentration of data centers in the world, currently use 3,583 megawatts, or enough electricity to power nearly 896,000 homes.
The state's data center boom is the subtext to increasingly intense politicking over longtime Virginia issues — climate change, electricity rates and the powers of local governments.
President Donald Trump has issued a series of executive orders removing barriers to expanding the electric grid's ability to serve data centers necessary to advance artificial intelligence and other power-hungry technologies.
Former state Sen. Chap Petersen, D-Fairfax, left, is seen with Sen. Creigh Deeds, D-Bath, on Jan. 26, 2023. Petersen says the data center industry is in retreat after the Virginia Court of Appeals threw out rezoning decisions for the Prince William Digital Gateway this week.
