Developer pulls out of massive Charles City County data center

Kansas-based development company Diode Ventures has backed out of a massive data center campus in Charles City County, following significant opposition to the project.

The center would have been located about 20 miles outside of Richmond. The company had sought to rezone five properties totaling about 515 acres from agricultural to light industrial for the development of the Roxbury Technology Park campus. The site, which is about three-fifths the size of New York’s Central Park, is bordered by Charles City, CC and Roxbury roads. Diode Ventures submitted an application with the county in March.

Charles City County Director of Community Development Gary Mitchell said the application was unanimously approved by the planning commission but faced opposition from neighboring residents. Criticisms included fears about noise and objections to the land transforming into an industrial use. However, Mitchell noted that while the land wasn’t zoned for industrial, a land use plan called for it to be changed to industrial use at some point.

The county board of supervisors in June tabled voting on the application to Aug. 26. But Mitchell said that Diode withdrew the application last week without providing much explanation.

A Diode Ventures spokesperson on Tuesday provided a statement saying the company has spent the better part of two years working in the county to analyze the site for data center development while adjusting its application based on community feedback.

“During that time, we also identified ways the community would benefit — such as improved local infrastructure, significant new tax revenue streams and job training initiatives,” the spokesperson said.

However, after careful consideration, Diode said it notified the supervisors on Aug. 18 that it would withdraw its applications for the site.

“Despite the county planning commission’s support of the project earlier this year, we made the decision to shift our focus elsewhere based on the results of conversations with our local collaborators and analysis of the site’s availability to be shovel-ready with power and municipal support,’ the spokesperson said. “Moving forward, Diode is committed to seeking opportunities to align future projects and their associated substantial financial and infrastructure benefits with the needs and values of the communities where we operate — much like we have in places like Kansas City, where we have helped bring millions of dollars to schools and job training efforts. We thank those who engaged with us during this process, and we wish Charles City County success. ”

County supervisors could not be immediately reached for comment.

The county’s staff report for the project described digital commerce as “the next industrial revolution,” saying it was “vitally important” that the county be included in the new digital economy.

The project was expected to generate between 800 to 1,200 construction jobs during peak construction, according to Diode’s website. The website also says that the project would have created between 50 to 100 full-time permanent jobs once operational.

Data centers, despite being an attractive tax revenue opportunity for localities’ coffers, have become increasingly subject to opposition by residents throughout the state. In June, Chesapeake City Council unanimously voted to deny a rezoning request that would have allowed Hampton Roads’ first major data center, and in April, a Herndon data center developer withdrew its $8.85 billion proposal for a data center campus and natural gas power plant in Pittsylvania County.

Loudoun County, aka Data Center Alley, in March approved a new regulation policy for data centers, eliminating them as a by-right use, although 24 applications were grandfathered in. As of February, the county had approximately 46 million square feet of data centers constructed or with a building permit issued, and about 61.5 million square feet of potential data center development.