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Data mining

Elena Schlossberg has spent the past three-and-a-half years fighting against what some say is soon to become the world’s largest data center complex.

The Haymarket resident estimates she’s participated in at least 100 Zoom calls, town halls and Prince William County meetings to protest the project, while wearing a series of T-shirts voicing her opposition with slogans like “Data centers destroying communities.”

The Prince William Digital Gateway project — which Schlossberg alternately calls the “digital gateway to hell” — is set to transform 2,100 acres alongside the historic Manassas National Battlefield Park into 23 million square feet of data centers after county supervisors approved its rezoning Dec. 13, 2023, after a 27-hour meeting and public hearing that saw as many as 200 people testify for or against the project.

Proponents say the project will support 30,000 construction jobs and could generate $500 million in annual tax revenue during the next 15 to 20 years, money that could go toward schools and public safety. It would nearly quadruple the $101.42 million in tax revenue Prince William’s existing data centers brought in for 2022, a figure that has grown from $6.2 million in 2012.

“My goal was always to bring in commercial tax revenue. We’re a county that tries to keep up with the Joneses,” says outgoing Prince William County Board Chair Ann Wheeler, adding that she was trying to relieve pressure on the county’s residential tax base through her support of data centers, which may have cost her re-election to the body. “It’s really hard to do without the same kind of commercial tax base like Fairfax and Loudoun.”

But critics like Schlossberg view the spread of data centers in Prince William as a noisy, looming catastrophe with unsustainable energy demands and high environmental risks that clash with the county’s Community Energy and Sustainability Master Plan, which aims to cut greenhouse gas emissions by 2030 and become carbon-neutral by 2050.

That opposition has led to lengthy battles before the county’s planning commission and supervisors, including meetings that have stretched overnight and pitted residents against the industry, placing elected officials in the crosshairs. Also adding  to the controversy is the lame-duck board’s approval of Digital Gateway and another development, the 270-acre Devlin Technology Park, near Bristow, in late November 2023, before new members could be seated, leading to complaints that the developments were jammed through.

The previous county board — with Democrats holding five seats to Republicans’ three — was divided mainly along party lines, with Democrats supporting the project and Republicans opposed. Ultimately, the project passed Dec. 13 on a 4-3 vote, with one Democrat, Kenny Boddye, abstaining.

“This is big money, big tech, big business,” says Dr. Steve Pleickhardt, president of the Amberleigh Station Homeowners Association, and a former Republican candidate for delegate. He’s not anti-data centers, he says — he just doesn’t want them near his home, or national parks. “Citizens don’t stand a chance against any of that.”

Attracting data centers

Bordered on the east by the Potomac River and home to Marine Corps Base Quantico and the FBI Academy training and research complex, Prince William has transformed from a farming community into a burgeoning life sciences corridor with the 2022 opening of the Northern Virginia Bioscience Center in the county’s Innovation Technology Park, a 1,500-acre research park anchored by George Mason University’s College of Science.

It’s also become an attractive destination for data center developers, lured by cheaper, more available land and better tax incentives than tech companies can find in other Northern Virginia counties.

Prince William has 42 data centers, totaling 7.78 million square feet, and another 4.5 million square feet were under development as of November 2023. That’s still a fraction of the industry’s presence in Loudoun County, Prince William’s neighbor to the northwest, which is home to the world’s greatest concentration of data centers.

Loudoun has more than 200 data centers comprising more than 26 million square feet, with an additional 4 million square feet under development. It’s home to Data Center Alley, a 6-square-mile area in Ashburn that handles more than 70% of the world’s internet traffic. Loudoun officials estimate data centers will generate about $570 million in personal property taxes in 2024. That’s about half of the local tax base, prompting Loudoun’s Board of Supervisors in November to approve a $70 million-plus revenue stabilization fund for its data centers to cover fluctuations in data center tax revenues in years when revenues are lower than anticipated.

Data centers are a growing, tax-rich business in Virginia, where the industry contributed $54.2 billion to the state’s gross domestic product from 2017 to 2021, according to a September 2023 PricewaterhouseCoopers study. Amazon.com alone invested $52 billion in building data centers in Virginia between 2011 and 2021, and the e-commerce giant expects to spend $35 billion more on data centers in the commonwealth by 2040, fed by increasing demand for cloud-based services like artificial intelligence tools and streaming media.

In Prince William, the county designated 9,500 acres as an overlay district in 2016, allowing data centers to develop in certain parts of the county without a special use permit. In 2022, county supervisors voted to open more than 2,000 acres for data center development use — an ongoing expansion effort prompted in part by a county study that found the overlay district is running out of marketable land.

Prince William’s fiber optic network and other infrastructure, as well as its initial data center tax rate of $1.25 per $100 of assessed value, added to the allure, says Wheeler.

Supervisors voted to raise that rate to $2.15 last spring to generate more revenue to cover county expenses and avoid spikes in real estate tax bills. That increase  doesn’t appear to have impacted developer interest.

Loudoun County’s data center tax rate is $4.15 per $100 of assessed value, but Wheeler says Loudoun is running out of land, and what it does have, it needs for housing. “[Data center developers] started looking close by, and we were here and had the fiber backbone already starting to go in,” Wheeler says.

As of early December 2023, there were at least 23 pending applications covering 14 data centers in Prince William that seek to rezone acreage from agriculture to business or modify building heights, according to the county planning office.

Those applications span data center projects over more than 1,000 acres. Among the largest are University Business Park, which would rezone about 117 acres in the county’s Brentsville District and allow for up to 3.8 million square feet of data centers, and Hunter Property, which would rezone roughly 196 acres in Brentsville.

One pending case deals with amending a zoning ordinance to address possible impacts of data center uses. Another is a review that could include amendments to the overlay district map.

Christina Winn, the county’s executive director of economic development, has previously said the county isn’t targeting data centers but considers the industry key to Prince William’s growth. Winn denied interview requests for this story.

The next “bull’s-eye” for data center development in Prince William is Sanders Lane, a two-lane, 4-mile road located near the Digital Gateway and surrounded by high-power transmission lines, Schlossberg says.

Similar to landowners near the Digital Gateway project, Sanders Lane residents are considering selling their properties to data center developers. A potential buyer for the Sanders Lane property hasn’t been disclosed and no application has been submitted yet.

“The Digital Gateway is just a microcosm of what’s happening in the state of Virginia,” Schlossberg says. “If people don’t wake up, we’re going to be sliced and diced and industrialized for the benefit of the world. And I don’t approve of that.”

Deshundra Jefferson’s opposition to the Prince William Digital Gateway project helped her oust Board Chair Ann Wheeler in the June 2023 Democratic primary. She will replace Wheeler on Jan. 2. Photo by Will Schermerhorn

Fever pitch

Debates over data center development in Prince William reached a fever pitch over the Digital Gateway and show no sign of abating, says Schlossberg, who founded the Coalition to Protect Prince William County in 2014 in response to a proposed transmission line to power an Amazon data center. The nonprofit focuses on smart growth and pushes back on the data center industry. It’s also one of more than 20 environmental and climate advocacy groups — including the Sierra Club and the National Parks Conservation Association — that banded together in December 2023 to ask the state legislature for regulatory oversight on data centers and a reexamination of the facilities’ impact on public health and the environment.

State Sen. Danica Roem, a Prince William Democrat who opposed the Digital Gateway, has said she plans to sponsor legislation that would allow the state more oversight of data centers.

Concerns over land constraints are already happening in Prince William County, too, along with skepticism over having the transmission capacity to meet the energy demand of the fast-growing sector.

Despite being the largest investor in renewable energy, the data center industry’s energy usage surpasses that investment, says Julie Bolthouse, director of land use with the Piedmont Environmental Council, which has organized against the centers in Prince William.

“The innovation on our renewable energy sector is not keeping up with the explosive energy demand that they are requiring,” Bolthouse adds.

Steve Precker, a spokesperson for Dominion Energy, assured planning commissioners during a Nov. 8, 2023, meeting that while the Fortune 500 electric utility can’t predict future impacts to the grid, Dominion would be able to handle the Digital Gateway’s initial buildout. Dominion Energy forecasts that electric demand for data centers in Virginia will more than quadruple from 2.8 gigawatts in 2023 to 13 gigawatts — roughly the equivalent of powering about 3.3 million homes — by 2038.

But Prince William Planning Commissioner Tom Gordy, a Republican who won election to represent the county’s Brentsville District on the Board of Supervisors in November on a platform of restricting data center growth, wasn’t convinced.

“Don’t sit here and tell me we have enough power. We don’t,” Gordy shot back. “We can’t keep doing this. … What is the breaking point for our county? When do we say enough is enough?” 

That exchange was another volley in a yearslong political battle over data center demand that’s divided supervisors along party lines. Prior to that meeting, on Nov. 3, 2023, Digital Gateway’s developers, Dallas-based Compass Datacenters and Overland Park, Kansas-based QTS Data Centers, submitted a fifth round of application documents to the county. Planning staff recommended that the project be denied, complaining that the submission of thousands of pages of documentation less than a week before the planning commission hearing on the project did not leave enough time for review. The planning commission, which plays only an advisory role, also recommended denial.

After a more thorough review of the Digital Gateway, county planning staff still recommended the project’s denial in early December, saying the applications lacked critical information about site layout, elevations or blueprints.

Noting that more than 100 residents had joined to sell their homes for the Digital Gateway, a QTS Data Centers spokesperson said in a statement to Virginia Business that “QTS is grateful to Prince William County … for entrusting us with stewardship of the Prince William Digital Gateway. … QTS will continue to work diligently with county staff, elected officials and residents as it carries out its environmental and responsible development commitments. We are excited for this partnership to strengthen the Prince William community and bring increased local tax revenue and new job opportunities.”

The Digital Gateway controversy ensnared Wheeler, who faced a recall campaign in 2022 over her support for data centers — support that contributed to her ouster in June’s Democratic primary by Deshundra Jefferson, a media relations strategist and former broadcast journalist who opposes the Digital Gateway project. Jefferson will replace Wheeler as board chair Jan. 2.

It also led former Supervisor Pete Candland to resign his position in 2022, citing a conflict of interest because he was one of the homeowners who had agreed to sell their homes to the Digital Gateway developers.

Data centers have consumed so much political energy that residents and county officials say little headspace has been left to consider alternatives, says Supervisor Bob Weir, a Republican who represents the Gainesville district where Digital Gateway is located, and who has repeatedly voted against data centers.

Weir says efforts should instead be put toward supporting small businesses who “get the short shaft every time.” He expects litigation to follow the December Digital Gateway vote, which also poses an additional challenge to the incoming board, which will have to see the proposal through.

Jefferson says she’s heard from residents that tourism could be a welcome industry for the county to develop, but many remain more “fearful about what is in front of them.”

Wheeler sees opposition to data centers as a general resistance to development and growth, including housing, and an example of how misinformation proliferates.

“I just assumed that it would defend itself,” Wheeler explains. “And I was wrong.”  

Associate editor Courtney Mabeus-Brown contributed to this story.


National Museum of the Marine Corps
Photo courtesy Virginia Tourism Corp.

Prince William County at a glance

Founded in 1731 and located about 30 miles southwest from the nation’s capital, Prince William County is the second largest county in Virginia. Home to Quantico — a Marine Corps base and the main training facility for the FBI and DEA — the county known for its Civil War history and historic riverside towns. Prince William is also home to the state’s largest public research university, George Mason.

Population

486,943

Top employers

  • Prince William County Public Schools
  • S. Marine Corps
  • Prince William County government
  • Walmart
  • Amazon.com

Major attractions

Tourist attractions in Prince William include two national parks: Manassas Battlefield, where the first major Civil War battle occurred, and the 15,000-acre Prince William National Forest, which has 37 miles of hiking trails. You can dive into history at the National Museum of the Marine Corps, a 120,000-square-foot building that covers the Marines’ role in World War II, the Vietnam War and others. Farm Brew LIVE at Innovation Park is dubbed Northern Virginia’s “first destination brewery campus.” MurLarkey, a local distillery, is undergoing an $8.1 million investment to establish a 25,000-sqaure-foot building on Farm Brew’s campus.

Top convention hotels

Hilton Garden Inn Manassas 108 rooms, 1,500 square feet of meeting space (opening in 2024 with 43,000 new square feet)

Wyndham Garden Manassas 158 rooms, 5,500 square feet of meeting space

Hilton Garden Inn Haymarket 117 rooms, 2,570 square feet of meeting space

Notable restaurants

Abugida Ethiopian, abugidaethiocuisine.com

The Black Sheep American, theblacksheeprestaurant.com

Bistro L’Hermitage (Woodbridge) French, m.bistrolhermitage.com

The Bone Southern, thebonebbq.com

SEMIFREDDO (Manassas) Italian, semifreddoitaliancuisine.com

Economic Development 2023: CHRISTINA WINN

Winn, who became Prince William’s economic development head in 2019, is president of the Virginia Economic Developers Association. She came to the county after leading Arlington Economic Development’s Business Investment Group, where she was a key member of the team that landed Amazon.com’s $2.5 billion-plus HQ2 East Coast headquarters.

Last year, Prince William reported more than $1.2 billion in capital investment and more than 1,700 new and retained jobs. Winn’s department also received the Accredited Economic Development Organization designation from the International Economic Development Council. The county has seen enormous growth, particularly with data centers, although residents and some county politicians are pushing to kill the proposed 2,100-acre Digital Gateway complex in rural Gainesville.

Winn serves on the boards of the Northern Virginia Chamber of Commerce and the Northern Virginia Technology Council. She’s also a member of the George Mason University President’s Innovation Advisory Council.

FAVORITE APP: Without a doubt, my go-to app has to be “Calm.” In the midst of the whirlwind that is life, it’s like a virtual oasis of tranquility. It helps me take a step back, breathe and re-center amidst the chaos.

Arlington hires new economic development director

Arlington Economic Development’s new director is Ryan Touhill, Arlington County Manager Mark Schwartz announced Monday.

Touhill will assume the role on Nov. 28. He succeeds Shannon Flanagan-Watson, who has been serving as interim director since Telly Tucker announced he was leaving to return to Danville, where he became president of the Institute for Advanced Learning and Research in April.

“I am thrilled to have Ryan at the helm of our economic development team, leading our community through an exciting period of commercial growth post-pandemic recovery,” Schwartz said in a statement. “He will be instrumental in fostering innovation and resiliency to advance economic growth and competitiveness in our community for small businesses and large corporations as well as foster real estate development, tourism, arts and cultural amenities.”

Touhill was senior vice president and chief of staff for the Alexandria Economic Development Partnership. He helped manage the business development, small business and economic recovery departments and managed the partnership’s internal business operations. While at the partnership, Touhill served on the project management team that helped secure Amazon.com Inc.’s HQ2 East Coast headquarters.

Touhill has also worked for Alexandria’s city government in the budget and human resources departments.

“Arlington is a dynamic and innovative community that has proven it can achieve smart, sustainable growth for businesses and residents alike,” Touhill said in a statement. “I am excited about this opportunity to bring my passion of service to ensure that Arlington County is a top business destination.”

He previously served on the board of directors for Rebuilding Together DC – Alexandria and as a youth mentor for Space of His Own.

Touhill holds a bachelor’s degree from George Mason University and a master’s degree in public administration from George Washington University.

“I am confident that Mr. Touhill will continue to strengthen important collaborative partnerships with Arlington’s business community across the region and the commonwealth. He will be a critical partner as we work together to strengthen our economic development capacity and accelerate the growth of tech startup companies and entrepreneurs,” Virginia Economic Development Partnership President and CEO Jason El Koubi said in a statement.

Prince George County hires economic development director

Prince George County has appointed Panayiotis “Yoti” Jabri its director of economic development, effective Aug. 1.

Jeff Stoke, who became the county’s administrator on April 12, selected Jabri as his successor.

“We are very pleased to be able to appoint Mr. Jabri to this very important county position,” Stoke said in a statement. “He has worked on several major economic development initiatives over the years and is very familiar with our community. We expect continued growth and success for Prince George County.”

Jabri, who graduated from Prince George High School and previously worked as an economic development specialist for Prince George County from 2017 to 2020, is currently Surry County’s economic development director. During his time with Prince George County, Jabri was the lead to distribute almost $2.15 million to 85 small businesses through the Prince George CARES Small Business Grant program.

He holds a bachelor’s degree in business administration from Longwood University and a master’s degree in economics/public administration from Virginia State University.

Prince George County administrator headed to King William County

Prince George County Administrator Percy C. Ashcraft is leaving to take the same role in King William County, county board chairman Floyd Brown Jr. announced Monday.

Ashcraft’s last day in Prince George will be Dec. 3 and he will start in his next role on Dec. 6.

“As chairman, I am saddened by his announcement, but I have to support his decision,” Brown said in a statement. “Mr. Ashcraft had an extremely good hand on how to manage the county through some of the changes in its economic base over the past decade.”

Ashcraft has been with Prince George County since March 2011. He had previously held government management positions in Caroline County, and prior to those, in his hometown of Clarksburg, West Virginia.

“I want to thank the members of the board of supervisors who I have served under and a talented staff who assisted me with guiding so many important projects and building a strong financial base in Prince George County,” he said in a statement. “It has been an incredible decade of progress for expanding services and opportunities for Prince George County residents. It was my pleasure to have been a part of it.”

Ashcraft served more than 12 years in the West Virginia Legislature before moving to Virginia in 1999 at the start of his government management career.

The Prince George County Board of Supervisors are expected to make an announcement about an interim replacement after its Wednesday work session.

“The board considered numerous applicants for the position, but Mr. Ashcraft’s many years of successfully running local governments really set him apart,” said King William County Board Chairman Travis Moskalski in a statement.

Henrico green-lights $2.3B GreenCity project

The Henrico County Board of Supervisors this week unanimously approved rezoning the 204-acre former Best Products headquarters campus into the $2.3 billion GreenCity project, a major mixed-used development that will feature a 17,000-seat arena.

GreenCity, which was proposed in December 2020, is also expected to include two hotels with 600 rooms, about 2.2 million square feet of office space, 280,000 square feet of retail space, 2,100 residential units and green space and plazas. Michael Hallmark with Capital City Partners LLC and Susan Eastridge, the president and CEO of Eastridge, are leading the project for developer GreenCity Partners LLC.

Anthony Romanello, the executive director of the county’s economic development authority put the project in context of the impact it will have on the region’s economy: Henrico’s gross county product is $26 billion annually and GreenCity’s impact is projected to be as much as $1.4 billion per annually. “It’s really going to be phenomenal,” he said.

Discussing the arena during the Oct. 12 Henrico Board of Supervisors meeting, attorney Andy Condlin with Richmond-based law firm Roth Jackson Gibbons Condlin PLC spoke on behalf of GreenCity Partners LLC, telling supervisors that the project’s centerpiece venue will be “a much more intimate arena” and “artists will want to come here.” He also noted the growing movement among performers to only play in arenas that have set sustainability standards and have made climate pledges, so he expects this arena to be sought-after venue for such artists. An operator for the arena has not been named yet.  

Over the next four to six months, the developers will create a community development authority with the county that will serve as the vehicle for financing the arena, Eastridge told Virginia Business. The developers will also buy the property from the county and work on financing the first phase of development in that time period. The price of the property is about $6.2 million, according to Anthony Romanello, Henrico’s economic development director.

The first phase will be an “adaptive reuse” of the existing 300,000-square-foot Best Products building, rather than increasing the project’s carbon footprint with all-new construction, Hallmark said. The developers hope to start construction in the second half of 2022 and complete it by the end of 2023, Eastridge said. 

In the second phase, GreenCity Partners LLC will build the 17,000-seat arena and most of the retail and hotel space, which they hope to start in 2023 and complete in 2024 or 2025. During the meeting, the developers noted that the whole project would not be done until about 2033 or 2034. 

“What’s most exciting about this project is there’s just nothing like it,” Romanello said. “And to have a fully sustainable community that has this kind of an economic impact, it will be unique. And what we’re really thinking about from an economic development standpoint is [that] lots of corporations are committed to sustainability and are really working hard to reduce their carbon footprint or eliminate their carbon footprint. … You may not be in a position to build a fully sustainable building, but now what this will allow is folks who are committed to sustainability to lease space and a facility that helps them live out that commitment.

“We believe that it’ll be really attractive for corporate office headquarters, particularly again for companies that have that strong feeling or strong sensitivity to sustainability,” he added. “And so that’s where I think the sustainability element is one of the differentiators.”

GreenCity’s developers are conducting a feasibility study on residential units to see how quickly they can build them without creating competition between them. They’re also studying the proposed park area, which will run about 1.5 miles from Parham Road to Interstate 295, to see if it can be developed at one time or should be built in phases, Eastridge said. 

During the Oct. 12 supervisors meeting, Nelsen Funeral Home CEO Bernie Henderson spoke in support of the project on behalf of ChamberRVA’s Henrico County Government Affairs Committee: “Our committee has closely monitored the GreenCity project from its initial announcement to the present time and we find that it is well-conceived and that it has enormous beneficial potential specifically for Henrico, as well as for the greater Richmond metropolitan community. We proudly offer enthusiastic support for it.” 

Henrico County Supervisor Tyrone Nelson said, “I feel like we’ve been talking about this ad nauseam. … We’re just ready to move forward.” 

Arlington County names new planning director

Arlington County has promoted Anthony Fusarelli Jr., a 15-year veteran planning employee, to planning director effective in early June, the county announced May 6.

Fusarelli started as a principal planner with the county in 2006. Most recently he served as assistant director of the county Department of Community Planning, Housing and Development.

Fusarelli was chosen after a national search. County Manager Mark Schwartz cited his experience and work with the community on long-term plans.

The county also credited Fusarelli with spearheading the first Crystal City Sector Plan in 2010 and managing the the Realize Rosslyn planning process, an update to that sector plan in 2015.

“I’m grateful and excited to help advance Arlington’s evolution towards a better, more inclusive community,” Fusarelli said in a statement.

Fusarelli received his bachelor’s degree in landscape architecture from University of Massachusetts Amherst and his master’s degree in regional planning from Cornell University. He has an accreditation from the American Institute of Certified Planners and is an alumnus of ULI Washington’s Regional Land Use Leadership Institute.