Virginia is home to the largest data center market in the world with a high concentration in the northern part of the state.
But recently two have announced for Wythe County and a third is being considered for Pulaski County.
One of the problems is that under current planning ordinances data centers can locate without permission in general industrial areas. Thus, localities like Christiansburg and Montgomery County are quickly establishing ordinances which would require the companies to apply for special use permits. This would alert both the local government and its residents about such plans.
This past week, Christiansburg town council held a public hearing on the proposed change.
Only two people spoke to the matter with Cory Hamilton saying data centers are negative for communities.
“We have to stop it from building in Christiansburg before it even begins,” she said.
Council passed the new ordinance by a 5-0 vote.
Residents did express concern that a proposed height exception in the Falling Industrial Park for a tower stretching over five stories was associated with a planned data center.
Local economic development officials have said it is not a data center.
One speaker at the council meeting, Travis Story, pointed out the state’s definition is different than what many localities like Virginia are referring to.
The state says a data center is a large industrial facility or building used primarily to store, process, manage and transmit digital data. It houses concentrated networks of computers, servers and telecommunications gear, alongside heavy support infrastructure like cooling systems and backup generators.
These sites are distinguished by specialized computer equipment alongside dedicated structural fixtures like electrical substations, chillers and fuel storage tanks.
To maintain its market lead, Virginia has in the past provided tax exemptions to many of those companies that located in the Commonwealth.
Virginia hosts over 600 data centers, and the industry is undergoing several shifts. Major ones by the State Corporation Commission will direct data centers to pay directly for their own power grid upgrades, such as dedicated substations to keep the massive infrastructure costs from inflating residents’ electric bills.
The issue of the large usage of electricity and then water for cooling the data centers on a regular basis has been the biggest concern of citizens. The third concern has dealt with the noise of the data centers.
Wythe and Pulaski counties had data centers announced earlier this year. A massive 1,000-acre proposal from Charlotte-based TAC Data Center targets active farmland just southeast of I-81 near the Pulaski County line. It envisions nine to 11 buildings requiring over 1,000 megawatts of power capacity.
In addition, the New River Valley Commerce Park Initiative officials have been evaluating a potential $750 million agreement for a regional data center project. The industrial zoning currently in place in that park allows the developer to construct a massive data center complex without needing additional special approvals.
The members of the NRV Commerce Park’s Authority include Pulaski and Montgomery counties along with the City of Radford.
In other matters, Christiansburg town council appointed Brad St. Clair as the joint appointed member to the New River Valley Emergency Communications Regional Authority to fulfill the remainder of Kevin Faust’s term expiring on March 31, 2027. This appointment will be effective Sept. 1, 2026.
