Northern Va. Year-in-Review: Region looks to tech, bioscience for expansion

The proliferation of data centers in Northern Virginia remains a perennial topic, and while they remained a headline among economic development deals for the region in 2024, they were not the only highlight as parts of the region look to tech and biosciences.

Last year started on the coattails of two massive announcements that came in December 2023.

First, the Prince William Board of Supervisors approved the controversial Prince William Digital Gateway, which could result in more than $24 billion in economic investments.

The month also brought news that Monumental Sports and Entertainment CEO Ted Leonsis, owner of the Washington Capitals and Washington Wizards, proposed moving the NHL and NBA teams across the Potomac River to Alexandria’s burgeoning Potomac Yards neighborhood in a $2 billion deal, a project championed by Gov. Glenn Youngkin.

But by late March 2024, the Monumental deal had fallen apart under opposition from state Senate Democrats, and Leonsis announced the teams would stay in Washington, D.C. The Digital Gateway has also been mired in lawsuits as opponents try to block the project, although county circuit judges dismissed the suits, prompting plaintiffs to appeal.

Despite the Monumental deal collapse and the legal battle against the Digital Gateway, economic development officials throughout Northern Virginia say 2024 proved a great year, with much to build on in 2025.

Alexandria

Alexandria’s strategy for growth rests on health care, education and entertainment, says Stephanie Landrum, CEO and president of the city’s economic development partnership. September saw the groundbreaking of Inova Health’s Alexandria Hospital at Landmark, part of a $2 billion redevelopment of the city’s former Landmark Mall. In January, Virginia Tech’s long-awaited $1 billion Innovation Campus opened in Potomac Yards.

“We’re two and one,” Landrum says, referring to the loss of the Monumental development, which would have included a new sports arena and music venue, as well as an expected 600 jobs. Landrum says she’s continued to talk with potential users of the space and hopes a new redevelopment plan can be determined this year.

On a positive note, in December 2024 the city approved a plan to convert the 600,000-square-foot Victory Center building on Eisenhower Avenue from offices to 377 rent-controlled residential units. The building has been vacant for more than two decades and the project is part of a multiphase plan, including additional housing and retail.

Arlington County

Arlington continues to feel the effect of work from home on its office space vacancies, but that didn’t stop CoStar Group, which announced its headquarters move from Washington, D.C., to the county’s Rosslyn neighborhood in February 2024 with the purchase of 1201 Wilson Blvd.

Dubbed a “trophy office” by county economic development director Ryan Touhill, Central Place Tower’s previously public Observation Deck will now be just for CoStar’s use, a privilege the real estate data company is paying the county $13.9 million to secure.

Touhill notes that CoStar will make an investment of about $20 million and add 100 jobs, in addition to a shift of about 550 current employees from Washington. The move is expected to be completed in the first quarter of 2025. In Crystal City, Venture Global LNG spent $143 million to purchase its 20-story Potomac Tower home and will expand its presence from 70,000 square feet to 95,000 square feet, Touhill says.

In December 2024, George Mason University opened its $254 million Fuse tech-hub building that will house both businesses and classes. Industry partners have started to move in, and classes on robotics, artificial intelligence, virtual reality and other tech topics will start this fall.

The hub fits with the county’s plan to continue to build out its tech industry, and it appears to be working. San Diego-based ShieldAI leased 45,000 square feet in National Landing, Touhill notes. Such moves, among many others, he adds, are a positive sign that companies are willing to invest in Arlington.

Fairfax County

Expansions of companies working in AI and space commercialization headlined in Fairfax, with quantum computing beginning to make inroads, says Victor Hoskins, president and CEO of Fairfax’s economic development authority.

In March 2024, Aerospace Corp. moved its California headquarters to Chantilly, where it has more than 750 employees, in addition to 1,000 more in the Washington metro area. Hoskins says Aerospace plans to expand its headquarters by 140,000 square feet.

Other highlights of the year included Trident Systems’ announcement in February 2024 that it would add a $3.7 million manufacturing facility to build space electronics systems for federal customers, a move that will add about 50 employees. Also, HawkEye360 opened its new Herndon headquarters in June, a 13,297-square-foot building on the same campus as its production facility, a move that is expected to create 29 jobs, according to the Virginia Economic Development Partnership.

For fiscal 2024, the county added 9,273 jobs and saw investment in nearly 1.6 million square feet of commercial office space, as well as more than 417,000 square feet of data centers.

Loudoun County

Loudoun counted 168 economic development wins in fiscal 2024, with more than $8 billion in investments and more than 5,000 jobs added or retained, says economic director Buddy Rizer. While data centers continue to be drawn to Loudoun, the county celebrated a diversity of companies investing in expansions.

In March 2024, California-based printed circuit board manufacturer TTM Technologies announced it would spend $13 million to expand its existing operations in Loudoun, adding 43 jobs. February 2024 also saw a headquarters and research and development expansion for Capra Biosciences, which produces bioreactor technologies. The company invested $3 million and will add 20 jobs, according to VEDP.

“It’s the right kind of company that we’re looking to grow, especially in Loudoun, because it leverages a lot of our strengths and kind of expands on our story,” Rizer says. With residential already growing at Rivana at Innovation Station, Rizer also expects a “major” announcement and groundbreaking at the burgeoning development in early 2025.

Prince William County and Manassas

Prince William is “all over the place,” says Trevor Johnson, deputy director for economic development and tourism. “That’s kind of the goal.”
The county is focusing on building on its reputation as a location for life sciences, and diversifying to attract advanced manufacturing, logistics and federal contractors, among others.

Manassas’s biggest win came at the end of the year, when Micron Technology announced its plans to invest $2.17 billion to expand its Manassas semiconductor manufacturing facility, adding 340 jobs. The company plans to move its manufacturing of DRAM chips from Taiwan to Virginia, and it is set to receive up to $275 million in federal funding and about $60 million from the state, subject to approval by the General Assembly and potential federal spending challenges under the new Trump administration.

In September 2024, ATCC, a developer and supplier of biologic materials, announced it would invest $55 million to expand production and add 75 employees in the county’s Innovation Technology Park, a research hub anchored by George Mason University.

Spotsylvania and Stafford counties

At least five new data center developments of about 8 million square feet are underway in Spotsylvania, says Kevin Marshall, business development manager for the county’s economic development and tourism department. Four are being developed by Amazon Web Services, which in March 2024 announced $35 billion in investments in Spotsylvania, Stafford, Lousia and Caroline counties.

Also, in March 2024, Singapore-based TES, a subsidiary of South Korea’s SK Group, opened its new IT asset recycling plant near I-95, a $175 million investment expected to add 100 jobs. The 128,000-square-foot facility used to house a Simmons Bedding mattress factory.

Stafford County, a stronghold for distribution plants, has seen that trend continue. Amazon.com’s 630,000-square-foot cross-dock facility in the Northern Virginia Gateway industrial park began operation in March 2024 and employs about 750 people.

Not to be outdone by its neighbors, Stafford has begun to feel the data center boom, says Liz Barber, the county’s economic development director. The Stafford Technology Campus was approved by the county in September 2024, allowing a 504-acre campus that could provide 5.8 million square feet of data center space across 23 buildings.

“It will go from zero to a lot within probably a three-year period,” Barber says.