Please ensure Javascript is enabled for purposes of website accessibility

Hampden-Sydney College receives $20M pledge

Richmond-based Endeavour Legacy Foundation has pledged $20 million to Hampden-Sydney College, the second largest gift in the college’s history.

The college will use the gift, announced Tuesday, toward renovating its former science center, Gilmer Hall, into an academic facility housing the economics and business, and government and foreign affairs departments. The two departments are currently housed in Morton Hall.

According to a Hampden-Sydney spokesperson, the Endeavour Legacy Foundation gift will cover the construction costs associated with the renovation of Gilmer Hall, work that will start this fall with an anticipated completion of spring 2026. Morton Hall and Johns Auditorium are being considered for future renovation.

“On behalf of a very grateful Hampden-Sydney College community, I thank Endeavour Legacy Foundation for its generous support for our shared vision to make Hampden-Sydney one of the finest and most distinctive colleges in the nation,” Hampden-Sydney College President Larry Stimpert said in a statement.

The Endeavour Legacy Foundation is co-led by Katharine “Kathy” Pauley Hickok, the daughter of the late Stanley F. and Dorothy Pauley. In September 2019, Hampden-Sydney College received a $30 million gift from Stan Pauley. The gift supported the construction of a new science facility, the Pauley Science Center, which opened in August 2022.

Stan Pauley was the chairman and CEO of polyurethane materials producer Carpenter Co. and served on the Hampden-Sydney board of trustees. He died in 2020 at the age of 93. His wife and fellow philanthropist, Dorothy Pauley, died in 2021 at the age of 91.

The family foundation also supported Virginia Commonwealth University and VCU Health, including a $5 million donation in 2005 that named the VCU Health Pauley Heart Center. As of November 2020, the Pauley family had committed more than $28 million to VCU. Dorothy Pauley graduated from the VCU College of Humanities and Sciences in 1974.

Kathy Pauley Hickok serves as president/secretary of the Endeavour Legacy Foundation, and her husband, Eugene “Gene” Hickok, serves as the vice president/director of the foundation, according to its 2022 tax return filing. Gene Hickok served as U.S. deputy secretary of education from 2003 to 2005 under then-President George W. Bush. He graduated from Hampden-Sydney College in 1972 and was director of the college’s financial aid.

A private men’s college in Prince Edward County, Hampden-Sydney College first held classes in 1775. As of fall 2023, the college had 876 students enrolled, according to State Council of Higher Education for Virginia data.

Note: This story has been changed since publication to distinguish between the Endeavour Legacy Foundation and the Pauley Family Foundation. 

Leidos wins $631M Army contract

Leidos has received a $631 million U.S. Army contract for life-cycle support of aerial sensors, the Reston-based Fortune 500 contractor announced Tuesday.

Under the Development, Integration, Acquisitions, Bridging to Logistics and Operations (DIABLO) contract, the company will provide equipment for the next 10 years. Leidos will develop, acquire, field and provide life-cycle support to aerial intelligence, surveillance and reconnaissance (ISR) sensors and integrated systems across a range of intelligence capabilities.

“We are excited about the opportunity to support the Army’s DIABLO program,” Tim Freeman, Leidos’ senior vice president for Airborne Systems, said in a statement. “Our full life-cycle work on sensors and airborne ISR is a legacy we’re proud of, and we look forward to expand upon that in support of the Army’s future capabilities work.”

The Department of Defense announced the single-award, indefinite-delivery, indefinite-quantity contract April 1, and the contracting activity is the U.S. Army Contracting Command – Aberdeen Proving Ground in Maryland. The DIABLO contract is under the Army Project Director Sensors-Aerial Intelligence’s direction. The contract has a five-year base with a five-year option, and the Defense Department estimates a completion date of March 31, 2034.

Leidos provides technology, engineering and science services to defense, intelligence, civil and health market customers. It has about 47,000 employees and reported approximately $15.4 billion in 2023 revenue.

Leidos receives potential $206M NGA contract

Leidos has won a contract valued up to $206 million from the National Geospatial-Intelligence Agency, the Reston-based Fortune 500 contractor announced Wednesday.

Under the single-award, indefinite-delivery, indefinite-quantity contract, dubbed Maru, Leidos will sustain and modernize geospatial processing for the NGA’s Exploitation Services Program. The contract extends existing software services, according to a March 22 NGA contract announcement.

The contract has a ceiling of $206 million, if all task orders are exercised over a five-year period. The initial task order award is $81 million, according to the NGA.

“Geospatial analysts and data scientists face a deluge of data at a demanding pace,” Roy Stevens, president of Leidos’ National Security Sector, said in a statement. “Leidos’ intelligence analysts and software experts are working together to create better geospatial tools to support NGA’s mission.”

Leidos will provide mission software development, sustainment and technology insertion, testing and user acceptance and enterprise deployment of analytical capabilities for geospatial processing. The contractor will be working on systems that support NGA’s day-to-day operations, including imagery and geospatial analysis.

Leidos provides technology, engineering and science services to defense, intelligence, civil and health market customers. It has about 47,000 employees and reported approximately $15.4 billion in 2023 revenue.

Virginians bet $635M on sports in March

Virginians wagered $635.59 million on sports in March, 24.2% more than March 2023, according to Virginia Lottery data released Wednesday.

March’s handle was a 16.6% increase from the $545 million Virginians bet in February. Virginia bettors won almost $588 million in March and approximately $495 million in February.

“Virginia bettors came back full throttle after a two-month slump,” Steve Bittenbender, an analyst with sports betting vendor BetVirginia.com, said in a statement. “State coffers benefitted from both college and professional basketball wagers.”

Approximately $629.66 million of March’s gross sports gaming revenues came from mobile operators, while the remaining roughly $5.9 million came from casino retail activity. Virginia currently has three casinos: the temporary Bristol Casino: The Future Home of Hard Rock, the permanent Rivers Casino Portsmouth and the temporary Caesars Virginia casino in Danville. In March, Virginia’s casinos reported about $65.08 million in gaming revenues, according to the Virginia Lottery.

Licensed operators included in March’s reporting were:

  • Betfair Interactive US (FanDuel) in partnership with the Washington Commanders
  • Crown Virginia Gaming (Draft Kings)
  • BetMGM
  • Rivers Portsmouth Gaming (Rivers Casino Portsmouth)
  • Caesars Virginia
  • Twin River Management Group
  • Penn Sports Interactive
  • Unibet Interactive
  • Colonial Downs Group
  • Digital Gaming Corporation VA
  • VHL VA
  • HR Bristol
  • Hillside (Virginia)
  • DC Sports Facilities Entertainment
  • Betr VA
  • PlayLive Virginia

Virginia places a 15% tax on sports betting activity based on each permit holder’s adjusted gross revenue (total wagers minus total winnings and other authorized deductions). With 13 operators reporting net positive AGR for March, state taxes for the month totaled $6.25 million. Of that, 97.5% — about $6.09 million — will be deposited in the state’s general fund. The remaining $156,277 will go to the Problem Gambling Treatment and Support Fund, which the Virginia Department of Behavioral Health and Developmental Services administers.

“Despite this not being a successful year for Virginia-based hoops, the state netted $6.2 million in tax revenue in March, proving local bettors enjoy engaging in events such as March Madness even without a hometown team to support,” Bittenbender said.

Going forward, the usual spring and summer slump in sports betting might not materialize because of the Paris Olympics, according to Bittenbender.

EY taps 14 Virginians as Mid-Atlantic Entrepreneur of the Year finalists

Fourteen Virginia business leaders are among the 30 finalists for Ernst & Young’s 2024 Mid-Atlantic Entrepreneur of the Year award.

EY announced the finalists, selected by a panel of independent judges, on April 22. The Big Four professional services company will name the regional awards winners on June 15.

The Virginia finalists include:

  • Anil Sharma, CEO of 22nd Century Technologies, Tysons
  • Kevin Kelly, chair and CEO of Arcfield, Chantilly
  • Julie Sciullo, CEO of Association Analytics, Arlington County
  • Sukumar Iyer, founder, executive chair and CEO of Brillient, Reston
  • Sid Chowdhary, founder and CEO of Credence Management Solutions, Tysons
  • Dan Berkon, CEO and president of Culmen International, Alexandria
  • Tom Walker, founder and CEO of DroneUp, Virginia Beach
  • Burton White, co-founder and CEO of Excella, Arlington County
  • Tim McLaughlin, co-founder and CEO of GoTab, Arlington County
  • Tim Springer, founder and CEO of Level Access, Arlington County
  • Kristina Bouweiri, president and CEO of Reston Limousine, Sterling
  • Dave Sterling, founder and CEO of Royce Geospatial Consultants, Arlington County
  • Glenn Diersen, founder and president of Summit Human Capital, Richmond
  • Tobias Dengel, president of WillowTree, Charlottesville

EY’s Mid-Atlantic region covers Virginia, Maryland and Washington, D.C. Of the 30 finalists, nine were from Maryland, and the remaining seven from the District. In total, the mid-Atlantic regional finalists generated nearly $2.8 billion in 2023 and employed more than 16,000 people. Over the most recent three-year period, they averaged an 86% growth in revenue and a 38% growth in employees.

In the U.S., the EY competition is divided into 17 regions. Regional winners compete in November for national awards, and the national winner represents the U.S. in EY’s World Entrepreneur of the Year competition, which includes winners from nearly 60 countries. EY founded its Entrepreneur of the Year program in 1986.

Clear waters

After receiving its final federal approvals in January, Dominion Energy’s $9.8 billion Coastal Virginia Offshore Wind project remains on track for completion in late 2026, at which point the 2.6-gigawatt project could power up to 660,000 homes.

“CVOW is on budget, on time, and we’re gearing up for construction and excited about getting it to this point,” says Dominion spokesperson Jeremy Slayton.

At the Portsmouth Marine Terminal, Dominion had 24 monopiles — the roughly 272-foot-long foundation posts for the massive 800-plus-foot-tall wind turbines — staged in late February, and 12 additional monopiles were scheduled for an April delivery. Dominion plans to begin installing monopiles 27 miles off the Virginia Beach coast on May 1 and expects to have about half of the 176 posts installed by Oct. 31.

Because of federal protections for endangered North Atlantic right whales, the Richmond-based Fortune 500 utility can’t work on installing the foundations from November through April. With that restriction, Dominion plans to install the remaining foundations in 2025 and begin turbine installation, which can take place year-round, in the 113,000-acre area of the Atlantic Ocean it’s leasing, Slayton says.

The project also includes three offshore substations, manufacturing on which began in fall 2022, although installation of the first substation’s topside foundations is set for late 2024 or early 2025 because the structures require underwater work first.

Onshore, Dominion is working on the electric transmission route and electrical infrastructure that’s scheduled to be operational in late 2025, although some work will continue into 2026. Drilling is set to be complete later this year for two separate portions of the project — the pipes where the offshore cables will come ashore and the underground transmission line.

On Feb. 22, Dominion announced it had reached an agreement with investment firm Stonepeak to sell a 50% noncontrolling stake in the project for nearly $3 billion. The deal, which requires approval from Virginia, North Carolina and federal regulatory agencies, is expected to close by the end of this year.

At the deal’s close, Dominion expects to receive $3 billion, minus a withholding amount of $145 million. If construction costs remain $9.8 billion or less, excluding financing costs, Dominion will get back $100 million from the withholding amount. But if construction costs total more than $11.3 billion, Dominion will not receive any of the withheld amount, and if the project costs reach that threshold, Stonepeak and Dominion would each contribute half of the additional capital costs. 

Meanwhile, the National Legal and Policy Center, a Falls Church-based nonprofit conservative watchdog group, filed a federal lawsuit in March aiming to stop construction of CVOW, claiming it would pose a risk to North American right whales. Dominion said in a statement that the arguments raised in the lawsuit “have no merit.”

Creating a hub

Hampton Roads leaders expect the CVOW project to be a catalyst for economic development in the region.

Each year during construction, CVOW could support 900 direct and indirect jobs, about 60% of which would be in Hampton Roads, according to Dominion. Its ongoing operations could support about 1,100 jobs in the region annually.

However, not all is sunshine and roses.

In November 2023, Siemens Gamesa Renewable Energy canceled its plans to build the United States’ first offshore wind turbine blade manufacturing facility at the Portsmouth Marine Terminal, a $200 million project expected to create 310 jobs. The Spanish-German company said it couldn’t meet “development milestones” to establish the plant, although Siemens Gamesa said it would fulfill its production obligations for CVOW.

Nonetheless, Mike Hopkins, managing director of Fairwinds Landing, a $100 million maritime operations and logistics center in Norfolk, says his company is “very bullish on … offshore wind, and we’re confident this industry is going to take off and Hampton Roads is going to be a hub for offshore wind.”

Construction is underway on an offshore wind monitoring and coordination center for Dominion at Fairwinds Landing, and several other tenants are involved in aspects of the industry. Also, maritime companies operating in the region have announced workforce expansions, like Norfolk-based Lyon Shipyard, which said last year it plans to add 134 jobs as it increases work on commercial ships and vessels servicing the wind farm project.

At the Port of Virginia’s Portsmouth terminal, where the wind farm’s monopiles are received and staged, construction is underway on $220 million in upgrades, expected to be complete by the end of 2025.

Virginia Port Authority Board Chair Aubrey Layne Jr. says the port has to reinforce 72 acres to be used by Dominion, “basically so [the area and facilities] can handle the weight.”

Dominion starting construction on the wind farm in May is “fantastic for the state of Virginia, and our ability to attract suppliers,” adds Matt Smith, Hampton Roads Alliance’s director of energy and water technology.

“As the industry builds out,” he adds, “the things that make Hampton Roads attractive” — such as its port infrastructure, maritime workforce and favorable business environment — “are going to continue to be so.” 

Spies in the sky?

High-level federal concerns over Chinese-made ship-to-shore cranes ramped up in February after President Joe Biden issued an executive order addressing cybersecurity and espionage risks the cranes pose at U.S. ports.

Then in early March, a congressional investigation revealed cellular modems had been found on some Chinese crane components at a U.S. port and a modem
was discovered in another port’s server room — although the specific ports were not disclosed — according to The Wall Street Journal.

Chinese state-owned Shanghai Zhenhua Heavy Industries Co., known as ZPMC, manufactures about 80% of all cranes in use at U.S. ports — including all 27 of the Port of Virginia’s ship-to-shore cranes. The port has eight more cranes on order from ZPMC, including four that will be delivered in December and another four set to be delivered in August 2025.

However, notes Cathie Vick, the Virginia Port Authority’s chief development and public affairs officer, there have been no reports of cybersecurity breaches involving Port of Virginia cranes, and the federal government has not alerted the port about any instances of Chinese espionage involving Virginia cranes.

Nonetheless, “it’s incumbent on the industry to stay vigilant,” says Derek Miller, the American Association of Port Authorities’ government relations director.

During congressional testimony in late February, Rear Adm. John Vann, commander of the U.S. Coast Guard Cyber Command, said the Coast Guard had found “vulnerabilities that are there by design” in crane software networks but had not found malware or Trojan horse-type software.

At the Port of Virginia, “before any new cranes are put into service, they are subject to a detailed forensic cyberanalysis that is performed by one of the nation’s federal law enforcement agencies,” Vick said in a Feb. 21 statement after Biden released his executive order expanding the Coast Guard’s authority to address cybersecurity concerns. “New cranes awaiting analysis are isolated with dedicated firewalls to ensure there is no contact with port networks or the internet.”

Additionally, the port undergoes regular cybersecurity exercises with federal entities, and some of the regulations implemented in Biden’s executive order, like mandatory reporting of cybersecurity incidents or active cyberthreats, were already included in the port’s protocols.

The AAPA is supportive of the Biden administration’s actions, Miller says, “particularly the executive order, which really was aimed at bringing the Coast Guard’s authorities when it comes to cybersecurity up to the level that they are with physical security.”

The White House also announced it would direct more than $20 billion in federal funds to invest in port infrastructure over the next five years, including supporting domestic manufacturing of cranes from a U.S.-based subsidiary of Japanese company Mitsui E&S Co.

Following Biden’s order, members of two U.S. House of Representatives committees sent a letter to ZPMC that made public the investigators’ discovery of modems at U.S. ports. The Coast Guard also issued a Feb. 23 directive listing risk management steps for owners and operators of Chinese-made ship-to-shore cranes.

“Obviously, the Port of Virginia will follow whatever the directions are and the law, but having said that … there’s been no, at least publicized, documented issue with the cranes in terms of their software,” says Aubrey Layne Jr., board chair of the Virginia Port Authority. “And so … for the policies to come out, that was a little bit perplexing.

“Any Chinese-owned companies now are being scrutinized, and we get it, so we want to make sure that we are compliant, but it is very political right now, and we’re trying to stay out of all that,” notes Layne, who served as Virginia’s secretary of finance and, before that, the state’s transportation secretary. “We’re just trying to run our business in a safe way for the American people.”  

The insiders

The new leadership of The Martin Agency, a nationally prominent Richmond-based ad agency that counts GEICO and UPS among its clients, isn’t so new.

Danny Robinson, who has been with the 400-person agency for 20 years and served as chief creative officer for the last three, succeeded Kristen Cavallo as Martin’s CEO this year, but he took some convincing to accept the role, he says.

“I had to really reflect on what it was I was taking on,” Robinson says. “I wanted to make sure when I said yes that I was ready to do it, because I care too much about this place and the people here to take over something and to not do a great job.”

Two days after the Jan. 30 announcement of Robinson’s ascension to CEO, Martin’s parent company, Interpublic Group of Cos., announced that Jerry Hoak, an executive creative director at Martin, would succeed Robinson as chief creative officer. Hoak, who joined Martin in 2016, says he had been preparing in hopes of eventually succeeding Robinson in the firm’s chief creative job.

Martin’s “new” leadership plans to focus inward for now.

“There wasn’t really a need for a transition because we were always part of the building of the agency,” Robinson says. “And then the rest is, well, how is Jerry going to operate differently than I am? And the same for me … but the fundamental should be the same.”

Martin CEO Robinson and Chief Creative Officer Jerry Hoak are new to their roles but not the ad agency. Photo by Shandell Taylor

In the wake

Martin has racked up awards and accounts in recent years, righting course after a highly publicized #MeToo scandal in 2017 that saw sexual harassment allegations made against Martin’s former chief creative officer, Joe Alexander. (He has denied the allegations and any wrongdoing.) Cavallo entered as CEO less than two weeks after Alexander left Martin and initially promoted Karen Costello as CCO. When Costello returned to ad agency Deutsch LA in 2020, Cavallo promoted Robinson, who became Martin’s first Black CCO and is now the agency’s first Black CEO.

Martin was named industry publication Adweek’s Agency of the Year in 2020 and 2021, as well as Ad Age’s Agency of the Year in 2023. It’s also stacked up a list of notable clients, like Fortune 500 used car retailer CarMax and Fortune 1000 food delivery platform DoorDash.

“We have a really great story to tell, and we tell it well,” Robinson says. “I think the greatest gift Kristen gave us was helping us with our brand story and our mission, and it really guides everything.”

Although Robinson said on a March episode of NPR’s “Full Disclosure” that he tries to fly under the radar, he’s received industry accolades, including Ad Age’s chief creative officer of the year award in 2022. Ad Age said he “revved up the agency’s creative output, turning out great ideas at a quicker pace across multiple categories and brands.”

Before coming to Martin, Robinson was best known for co-founding ad agency Vigilante, part of Leo Burnett, in 1998. Vigilante orchestrated Oprah Winfrey’s famous 2004 car giveaway.

Robinson joined Martin as a senior vice president and group creative director in 2004 and was promoted to chief client officer in 2019 before becoming chief creative officer.

Hoak joined Martin more recently, after holding art director roles at Ogilvy New York, Taxi and Droga5 New York, where he rose through the ranks. At Martin, he was promoted from group creative director to executive creative director in 2017.

Charting the course

Now at Martin’s helm, Robinson says he has four priorities as CEO: Martin’s Cultural Impact Lab; Martin Entertainment; the agency’s design capability; and new business attraction.

“I believe the goal — my goal, at least — the first year is to double down on those things, to hone them, to make them better, to make sure they’re integrated in the right way, to make sure they’re resourced right and to make them stronger,” Robinson says.

Martin launched its Cultural Impact Lab in 2019. The lab, which started as an earned media team and expanded to include social media and influencer work, has “PR and earned specialists who are super culturally minded,” says Alanna Strauss, executive vice president of Martin Entertainment and the Cultural Impact Lab. The team is “seeing what’s happening, cultural trends, kind of creating theses and stories, and building that into our creative development process.”

Among the focuses she and Robinson have discussed, Strauss says, as subcultures and analytics grow in importance, “the focus with the lab will continue to grow, build and carve out its space within our entire agency process.”

In June 2023, Cavallo recruited Strauss to start Martin Entertainment, which focuses on extending brands into entertainment through partnerships that marry brands with existing intellectual property like TV shows or movies and through new content that brands create. One example of Martin Entertainment’s work is a late 2023 ad campaign pairing GEICO and Netflix to market Netflix’s animated children’s movie “Leo.” In the ad, the GEICO gecko advises the lizard Leo, voiced by Adam Sandler, during film shooting.

Robinson and Strauss plan to create an “entertainment room” program, which would be a full-day workshop developing a customized strategy for an existing or new client’s brand to enter the entertainment world.

“The goal is coming out of it, for brands to understand, ‘Here’s how I want to show up in entertainment, here’s where I want to show up in entertainment, and here are the types of stories I want to tell to hit the audience I want to speak to,’” Strauss says.

Eyes on the horizon

Working on Martin’s design capabilities is important because “design is critical to everything we do,” Hoak says.

Hoak says the agency in recent years began partnering designers with creative directors earlier in the pitch process. “I feel like we’re winning pitches in large part because of design and what we’ve done there,” he says. In an early April LinkedIn post, Hoak credited the change as “a huge reason” Martin won the pitch for a Papa Johns rebrand.

He also believes Martin can grow its creative work and win more industry awards, like the Cannes Lions Awards: “Luckily, we have the staff in place to do so. It’s just a matter of pushing, and we have some great new clients and great old clients that are ready to buy great work, and over the last six years, we’ve been pushing them in the direction to now hit the home runs.” 

Two months after Robinson and Hoak assumed their roles, Robinson appointed a new chief operating and culture officer. Adrienne Wright Cleveland is succeeding Carmina Drummond, who retired after 35 years at Martin. Cleveland joined the agency in February 2023 as managing director heading talent and culture.

For now, Hoak says, Martin isn’t planning to fill his previous role as one of three executive creative directors.

Robinson and Hoak stress that their leadership transition was smooth and that they don’t see a need to change course.

“It really does have a lot to do with … how embedded Jerry and I were,” Robinson says. “We were part of the building of … the agency the past five or six years, … and I think it helps that people in the company know that we were part of it and understand that; they know our intentions, and they’re good.” 

Visit Alexandria appoints next president and CEO

A veteran tourism marketing executive from California, Todd O’Leary, will be Visit Alexandria’s new president and CEO, effective July 8, the tourism marketing organization announced Monday.

Visit Alexandria’s board of governors has appointed O’Leary to succeed Patricia Washington, who announced her plans to retire in December 2023. Washington will lead the organization through the end of June 2024.

“My time as president and CEO of Visit Alexandria has been immensely fulfilling, and I am thrilled to pass the baton to such a warm, energetic and strategic leader in the tourism industry,” Washington said in a statement.

O’Leary comes from Sonoma County Tourism in Santa Rosa, California, where he was vice president of marketing and communications since 2018. From 2013 to 2018, O’Leary worked with the San Francisco Travel Association, serving as vice president of global partnerships and strategic alliances.

Before that, O’Leary worked with Visit Milwaukee, starting as a group tour manager from 1998 to 2005, returning as director of membership from 2008 to 2011 and serving as director of marketing from 2011 to 2013, according to his LinkedIn profile. From 2005 to 2008, he was a senior sales manager at Midwest Airlines, according to his LinkedIn profile.

“I am deeply honored and excited to be appointed president and CEO of Visit Alexandria,” O’Leary said in a statement. “Alexandria is an incredible destination with a solid reputation that I’ve long admired. I’m excited to work with the members, board, staff and community at large to further the positive impacts of Alexandria’s tourism industry.”

O’Leary serves on the brand and content committee of Visit California and has held committee roles at CalTravel, San Francisco Travel and Destinations International, as well as on the board of Destinations International.

He earned his bachelor’s degree in urban planning and marketing from the University of Wisconsin-Whitewater. O’Leary is a certified tourism industry specialist and a certified destination management executive.

Visit Alexandria created a search task force to fill the position and used executive search firm SearchWide Global.

“We are delighted to welcome Todd as the next president and CEO of Visit Alexandria,” Kate Ellis, chair of the Visit Alexandria Board of Governors and general manager at Hotel Indigo, said in a statement. “Todd’s ample experience across the travel and tourism industry matched with his personable demeanor and vision for the future of Visit Alexandria will be critical as the organization prepares for its next phase of growth.”

Google investing $1B in Va. data center campuses

Google is investing $1 billion in expanding its Virginia data center campuses this year and is launching a $75 million Google.org AI Opportunity Fund, one of Google’s top executives and Gov. Glenn Youngkin announced Friday at Google’s Reston office.

“Today is a great day. We’ve got a $1 billion investment in the commonwealth that we’re announcing. There’s an establishment of a new AI Opportunity Fund. And we’re creating new and opportunistic ways and pathways for people to upskill and find a new pathway to an amazing career,” Youngkin said. “That is worth celebrating.”

Google has two data centers in Loudoun County and one in Prince William County and is investing $1 billion to expand those campuses. The Prince William County data center was built in 2023, according to a Google fact sheet. A Google spokesperson did not provide additional details about the size of the campuses or expansion plans.

Counting the $1 billion investment, Google has invested more than $4.2 billion in Virginia to date, according to a news release.

“The investments we’ve made today are not only important investments in infrastructure, but they’ve also added 3,500 jobs in Virginia, and they’ve supported $1 billion of economic activity, and we look forward to continuing to build on the work that we’ve done today,” said Ruth Porat, Google and Alphabet’s president, chief investment officer and chief financial officer.

Google appears to have additional plans for Prince William County data centers. In March, the U.S. Army Corps of Engineers approved a 181-acre data center complex project application from Delaware-based Sharpless Enterprises, a shell organization linked to Google, according to InsideNova and trade publication Data Center Dynamics.

In Northern Virginia, around 300 data centers are sprawled across Loudoun, Prince William and Fairfax counties, with the majority in Loudoun. The Ashburn area in Loudoun is home to the world’s largest concentration of data centers, a zone known as Data Center Alley, which more than 70% of the world’s internet traffic comes through. The Prince William Digital Gateway, if completed as planned, would be the largest data center complex in the world.

According to the Data Center Coalition, the data center industry invested $37 billion in the commonwealth over just the past two years. One of Google’s main competitors, Amazon Web Services, invested $35 billion in Virginia data centers between 2011 and 2020 and plans to invest another $35 billion by 2040 to develop multiple data center campuses across Virginia.

Northern Virginia’s data center market is larger than the next five U.S. markets combined and larger than the next four global markets combined, Youngkin said, citing a 2023 JLL data centers report, measuring markets by megawatts of built-out critical IT load capacity. “With that comes tremendous synergy and an ecosystem that enables advanced development, and so Google’s $1 billion investment is a continued demonstration that that ecosystem is one worth investing in,” Youngkin said.

Data center opponents argue the centers strain the state’s electric grid. Dominion Energy estimates that Virginia data centers’ demand for electricity will jump from 2.8 gigawatts in 2023 to 13 gigawatts by 2038.

The 2020 Virginia Clean Economy Act created a 2050 mandate for generating electricity statewide from renewable, carbon-free energy sources. In 2022, Youngkin announced a state energy plan that endorsed an “all-of-the-above” mix of energy sources, including hydrogen, natural gas and nuclear power, in addition to the wind, solar and battery storage supported by Virginia Democrats.

“As we grow, the power demand accelerates as well, and that’s why, when we launched our all-of-the-above, all-American energy plan, it embraced the idea that we are going to have to innovate; we are going to have to accelerate in order to meet the growing demand across the commonwealth as our economy accelerates,” he said.

Google’s goal is to run its data centers entirely on carbon-free energy by 2030.

Artificial intelligence training

L to R: Mike Haynie, executive director of the IVMF and Syracuse University’s vice chancellor for strategic initiatives and innovation; Virginia Gov. Glenn Youngkin; Ruth Porat, Google and Alphabet’s president, chief investment officer and chief financial officer; and Virginia Secretary of Commerce and Trade Caren Merrick chat in Google's Reston office. Photo courtesy Google
L to R: Mike Haynie, executive director of the IVMF and Syracuse University’s vice chancellor for strategic initiatives and innovation; Virginia Gov. Glenn Youngkin; Ruth Porat, Google and Alphabet’s president, chief investment officer and chief financial officer; and Virginia Secretary of Commerce and Trade Caren Merrick chat in Google’s Reston office. Photo courtesy Google

The $75 million AI fund from the company’s philanthropy, Google.org, will give grants to workforce development and education organizations. The tech giant is also launching a certificate course, AI Essentials, to teach people to “use AI effectively in day-to-day work,” according to a news release.

“I always remind everybody that companies and people make choices. ‘Where are we going to live? Where are we going to invest? Where are we going to spend the next 50 or 100 years of our effort?’” Youngkin said. “And I’m very humbled when families and companies choose Virginia. … And it’s days like today where we’re reminded that one of the greatest companies in the world is, once again, making a decision to invest in Virginia.”

The D’Aniello Institute for Veterans and Military Families (IVMF) at Syracuse University is the first organization to receive funding from the AI Opportunity Fund. The IVMF received a $3.5 million grant to offer the AI Essentials source and the Google Cybersecurity Certificate through its Onward to Opportunity program, a free career training program for transitioning service members, veterans and military spouses.

“With this new Google AI Essentials course, we are confident that we can arm our veterans and military family members with the training and the skills they need to put [AI] technology to use realizing whatever career aspirations they have,” said Mike Haynie, executive director of the IVMF and Syracuse University’s vice chancellor for strategic initiatives and innovation.

Google’s AI Essentials course will be under 10 hours. It will be available for $49 on Courseera as well as available for free through some nonprofits, including IVMF and Goodwill Industries.