Data center development not slowing down in Virginia, Maryland
Virginia has the highest concentration of data centers in the country, and with the debate over development in Prince William Country, many are wondering: Is my neighborhood next?
The short answer is: If you live in Virginia, don't expect the data center development boom to slow down anytime soon. And Marylanders could be next.
In Virginia, it started as a draw for high-speed connectivity due in part to the placement of the Pentagon. But the reasons to build have only grown since.
"One is unparalleled connectivity," says CBRE Vice Chairman Rob Faktorow. "The second is reliable and environmentally clean energy and the third is a mutually beneficial incentive program in the state of Virginia."
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According to a recent state audit, Virginia taxpayers provided more than $1 billion through the data center exemption in 2022.
But not everyone agrees with Faktorow that the energy is reliable and environmentally clean. Ivy Main with Virginia's Sierra Club says data centers are ramping up demand on utilities and that will end up costing more in the long run.
"They talk a big game about sustainability but if you look at how much solar is in Virginia, it doesn't begin the cover the demand of the data centers," says Main.
Maryland has not been as competitive historically, but they're trying to change that with new tax incentives passed in 2020.
"Maryland is at more of an advantage than we ever have been because of the legislation that passed in 2020," says Maryland Tech Council CEO Kelly Schulz. "That's what is bringing them here and making them want to expand here. Maryland is also at an advantage because we don't have the highest property usage land rates that they do in some parts of Virginia."