Amazon Web Services to invest $35B in Va. data center campuses

Amazon Web Services plans to invest $35 billion by 2040 to establish multiple data center campuses across Virginia, creating 1,000 jobs, Gov. Glenn Youngkin announced Friday.

Youngkin’s office said in a news release that “numerous localities in the commonwealth are under consideration” for the campuses, and specific sites “will be decided at a later date.”

AWS established its first data centers and operations facilities in Virginia in 2006. AWS has invested $35 billion in Virginia between 2011 and 2020, according to an economic impact study released by the company. It has 8,800 full-time AWS employees, as of Sept. 2021, the study says, but in total supported 13,500 jobs through data center construction and operation. It built a new corporate office in Fairfax County in 2017 and opened the first office in Amazon.com Inc’s new HQ2 East Coast headquarters, in Arlington, in 2019, according to the study.

AWS added 1,400 new full-time positions in 2021 and more than 1,000 contract-based data center roles in areas including security, facility maintenance, electrical and mechanical contracting, according to the study.

“AWS has a significant presence in Virginia, and we are excited that AWS has chosen to continue their growth and expand their footprint across the commonwealth,” Youngkin said in a statement. “Virginia will continue to encourage the development of this new generation of data center campuses across multiple regions of the commonwealth. These areas offer robust utility infrastructure, lower costs, great livability, and highly educated workforces and will benefit from the associated economic development and increased tax base, assisting the schools and providing services to the community.”

The Virginia Economic Development Partnership worked with the General Assembly’s Major Employment and Investment (MEI) Project Approval Commission to secure the AWS expansion for Virginia.

Pending General Assembly approval, the commonwealth is developing a new state Mega Data Center Incentive Program, which AWS would be eligible for. The program would include an up to 15-year extension of data center sales and use tax exemptions on qualifying equipment and enabling software. Also subject to General Assembly approval, AWS would be eligible to receive an MEI custom performance grant of up to $140 million, including site and infrastructure improvements, workforce development and other project-related costs.

The issue of data centers and their locations have become a controversial topic in recent years. Legislation proposed by Del. Danica Roem, D-Manassas, seeks to slow or stop the proposed Digital Gateway in Prince William County, while a joint resolution filed by state Sen. Chap Petersen, D-Fairfax, asks the state’s Department of Energy to study the impacts of data centers on the commonwealth, including how they affect the economy, energy and climate change, WTOP reported. In Fauquier County, residents have fought a proposed 220,000-square-foot AWS data center, citing noise concerns. A public hearing and a vote on the matter is set for Feb. 14, according to the Fauquier Times.

In Loudoun County alone, AWS has 65 data centers in operation or in development.

“It’s always great news to see the commonwealth invest in great businesses and in our most important industries. Amazon Web Services has been actively investing in Loudoun for more than a decade and is one of our largest taxpayers,” Buddy Rizer, executive director for Loudoun County’s economic development department, said in a statement. “Importantly, they are also one of our most active corporate citizens, making major investments in our school system, Northern Virginia Community College and in other important social initiatives in the county. We’re proud to say that Northern Virginia is home to more AWS facilities than anywhere in the world, with more than 65 data centers in operation or in development in Loudoun alone. To see their continued growth in our county and throughout Virginia is great for everyone involved.”