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South Hill, Mecklenburg team on new industrial park

Summary

  • , Mecklenburg form to develop new 67-acre .
  • $12.4M in water/sewer upgrades planned as part of capital project.
  • Site aims to attract industries beyond .
  • operates or builds 11 data centers in the county

South Hill and officials want to ensure the region’s economic future doesn’t hinge entirely on data centers.

This spring, county supervisors and town council members agreed to form the Regional Industrial Facility Authority.

Regional authorities allow local governments to share costs and revenue from industrial commerce sites. Mecklenburg County already partners with Greensville County and Emporia on the Mid-Atlantic Advanced Manufacturing Center and with Brunswick County on the Roanoke River Regional Business Park.

The goal of launching the Route 58 Activation Corridor RIFA is to develop a new industrial park on the edge of South Hill, the largest of six towns located in Mecklenburg.

The facility will sit on 67 acres purchased April 1 by the Mecklenburg County Industrial Development Authority for $1,000 per acre, according to Angie Kellett, the county’s director of .

It will take at least a couple of years before the park is ready for tenants, says Kellett. A five-year capital project plan adopted in April as part of South Hill’s budget process includes $12.4 million for extending water and sewer lines to the new industrial park, according to Town Manager Keli Reekes. The utilities will also serve around the former Park View High School, which closed in 2022.

The town and county will share the utilities’ cost, though grants are expected to cover some of the expense, Reekes says.

After the state approves the RIFA’s creation, leaders of the member localities will have decisions to make, including whether to build a shell building on the site and how to market the new industrial park.

County and town officials hope the new industrial park will attract opportunities beyond data centers, which currently dominate the region’s business landscape, Reekes and Kellett say.

As of last fall, Mecklenburg County had a dozen data center sites either operating or under construction — including 11 owned by Microsoft, according to reporting by The Mecklenburg Sun.

Microsoft is Mecklenburg County’s second largest employer, according to a state community profile updated in 2025.

“Microsoft — we’re very glad to have them here,” Reekes stresses.

That said, the region’s leaders want to attract new industries to the industrial park. “We are looking to diversify,” she says.

Virginia Beach anticipates bright tourism summer

Three Dog Night ushered in a new era for The Dome in Virginia Beach in May, belting hits like “Joy to the World” to excited fans and driving the summer entertainment season on the Oceanfront.

Next on tap is the launch of the Wavegarden surf lagoon, which is expected to open this summer, according to city officials. Both The Dome and Wavegarden are major pieces of the $350 million Atlantic Park, the long-awaited entertainment complex led by Virginia Beach-raised music and fashion superstar and Virginia Beach’s Venture Realty Group, his frequent development collaborator.

The two new venues are also bright spots for the resort city even as tariffs buffet other key economic engines in Virginia Beach.

“The beach is busy,” says Amanda Jarratt, the deputy city manager who was tapped as interim director after Christian Green resigned in June due to family issues. “We started our busy season much earlier this year than in previous years.”

In February and March, more than 10,000 athletes hit town on back-to-back weekends for three NCAA Division I conferences’ track championships at the Virginia Beach Sports Center. That venue and others are making Virginia Beach more of a year-round destination than before, Jarratt notes.
Also, responding to the cancellation of Something in the Water’s late April music festival, the city quickly staged Vibe Check, a replacement festival that drew a crowd of 1,000 to see rapper Waka Flocka Flame, and the third annual Jackalope Festival followed up with a strong showing in late May.

The extreme sports showcase will return to the beach for the next three years, planners say.

Jarratt says she expects the city to attract about 14 million visitors this summer, the same as last year.

The deep blue sea

The forthcoming Wavegarden lagoon has drawn headlines since it first was mentioned in 2018 as a project spearheaded by Pharrell Williams and using Spanish wave-making technology that then had not been used in the United States, although a California surf park has since opened. As of mid-June, developers said the surf lagoon has been filled with water, and it is expected to open mid-summer, although they would not give a specific opening date.

Plans to open Virginia Beach’s Wavegarden were delayed due to financing obstacles and a delay in construction in 2023 caused by elevated levels of arsenic and iron, an issue that has since been fixed. Known as Atlantic Park, the $350 million project sits on the 10-acre site that formerly housed an earlier version of The Dome, between 18th and 20th streets.

The public-private partnership is supported by $125 million in city funding for two parking decks and infrastructure improvements, and the city owns the venue. Ultimately, Atlantic Park is expected to include 100,000 square feet of restaurants and retail, 10,000 square feet of office space, 20 surf bungalows and 300 apartments on its 11 acres.

Meanwhile, two outdoor cafes — Mi Vida and The Grill — have opened, and Jarratt says there are talks ongoing with an ice cream shop and a men’s retailer to come in.

“The retail and restaurants will come online throughout the summer into the early fall, and then we anticipate the multifamily units being available in the fall of this year,” Jarratt says. “This is Virginia Beach’s largest public-private partnership in history. Because it’s opening in phases, we won’t see the full economic impact until after 2026.”

In 1994, the old Dome was torn down after Three Dog Night performed the final show at the geodesic concert hall in 1993.

The new Dome, which employs 209 people, has a capacity of about 3,500 attendees, similar to Chrysler Hall, and room for another 1,500 people when the doors are open to an outside viewing area. Live Nation is in charge of scheduling events and promised to stage 100 shows this year at The Dome, and Jarratt says the city is anticipating closer to 200 events next year.

Vincent Magnini, a professor of management at Longwood University, is contracted to perform an economic analysis after the 2025 season to ensure The Dome is on track, she says.

“We’re really excited about not only The Dome, but the entire project,” Jarratt adds. “It’s truly going to be transformational for the Oceanfront.”

Beyond the beach

While the city’s biggest attraction is the beach, Jarratt says offers a new focus and opportunity. “We’re really working to be a 12-month destination.”

Central to that is the Virginia Beach Sports Center, a $68 million project opened in October 2020 near the Virginia Beach Convention Center. The 285,000-square-foot indoor facility is one of the largest of its type on the East Coast, with 12 basketball courts that can be converted into 24 volleyball courts and a 200-meter hydraulically banked indoor track, all with enough seats for more than 5,000 spectators.

After a 2023 audit revealed the original operator of the venue, Eastern Sports Management, was millions of dollars in debt and had failed to pay promoters, the city purchased ESM’s contract and installed Sports Facilities Cos., a Florida firm that manages similar venues in other tourist destinations.

Volleyball tournaments, softball tournaments, cheerleading competitions, dance competitions and wrestling tournaments have filled the center in recent years.

“Focusing on events like that really does weatherproof our weekends,” Jarratt says, adding that the city was also looking not only at recruiting tournaments, but providing other activities for athletes’ family members with downtime.

Focusing on drawing more domestic visitors is even more important today since Virginia Beach traditionally draws a significant dollar from Canadian visitors. With President Donald Trump’s provocations against the nation’s neighbor to the north, including threatening tariffs and proposing making Canada the “51st state,” some Canadians are declining to visit the U.S. as tourists.

In 2023, Canadians spent $38 million in Virginia Beach, according to a city study. As stated in a May New York Times story, the number of Canadian travelers to the U.S. by plane dropped 19.9% in April, and car travelers declined by 35.2% compared with April 2024.

“We’ve seen a slight decline in our Canadian booking,” says John Zirkle, president of the Virginia Beach Hotel Association and corporate director of operations for Harmony Hospitality. “We’re a drive-to destination for a lot of the people in Canada, so we’re hoping that they don’t take politics out on us. We’re just here to provide a great experience.”

So far, the city’s labor force has not suffered from federal policy, though, Jarratt and Zirkle say. Most foreign students who work at the Oceanfront in the summer already had obtained their J-1 visas before Trump took office. As of May, there were no major labor shortages in Virginia Beach’s hospitality industry.

As for tourists from Virginia, federal worker layoffs and cutbacks affecting government contractors may put a crimp in visitor numbers, Zirkle says, but upscale, branded properties are performing better than lower-end hotels.

“We’ve got something for everyone,” Zirkle says. “But not everyone can afford to go all the time.”

The city’s leadership troubles have continued, though, with economic development director Christian Green’s resignation after less than four months on the job in June due to “pressing family matters,” according to the city. He joined Virginia Beach in February, succeeding Chuck Rigney, who resigned abruptly last July following scrutiny of his travel expenses. Jarratt, who was interim director after Rigney’s departure, is back in the role a second time.

The energy sector

Tariffs are a challenge for ‘s Coastal Virginia Offshore Wind project, potentially increasing the cost of the $10.7 billion project by $500 million if levies remain in effect through 2026, according to Bob Blue, the Fortune 500 utility’s chair, president and CEO, speaking during a May earnings call. He said that as of early May, Dominion had incurred about $4 million in tariff costs, and that would likely grow to about $120 million if tariffs extend through the end of the second quarter.

Residential customers, however, would see a relatively small increase of about four cents on their monthly bills, Blue anticipates. “It’s difficult to fully assess the impact tariffs may [add to] the project’s final cost. … Let me be clear, CVOW remains one of the most affordable sources of energy for our customers.”

Costs aside, CVOW is moving along on schedule and is set to be complete in late 2026, says Dominion spokesman Jeremy Slayton. As of May, 96 of the 176 monopile foundations had been installed, and construction of the 2.6-gigawatt wind farm was 55% complete.

Wind energy projects, especially offshore, have hit headwinds under Trump, who is opposed to efforts to shift electricity production to renewable methods. But as Dominion said earlier this year, it received all of its federal permits for CVOW before Trump took office.

Closer to shore, Globalinx completed construction this spring on four marine bore pipes that extend into the Atlantic Ocean from a Sandbridge parking lot, part of a project to increase the number of subsea fiber cables entering the state.

With tech experts predicting higher demand for due in part to the AI boom and related internet use, these cables will bring more data flow to Virginia.

Currently, three ultra-high-speed transatlantic cables connect Virginia Beach to Brazil, France and Spain and come to Virginia Beach’s Corporate Landing Business Park. The addition of other subsea cables is expected to increase subsea data flow into the state by more than 400%, says Greg Twitt, founder and president of .

“We need to be ahead of the AI race and subsea cables are creating the capacity. We need to put that infrastructure in now,” Twitt says. He notes that 97% of internet traffic moves through oceanic cables, and 70% of the world’s traffic moves through Loudoun County’s data centers.

Meanwhile, other data centers across the state have been approved and are under construction. Proposed data center campuses also face opposition, including in nearby Chesapeake, where hundreds of residents spoke against a planned data center in Great Bridge. Some Sandbridge residents voiced opposition against Globalinx’s project as well, but Twitt says there aren’t many options for alternate subsea landing locations.

“The only place to date that’s been good for subsea cables to come into Virginia is Virginia Beach,” he says. “So, it’s a great Hampton Roads initiative, but it really is a Virginia initiative more than anything, and the need to have that traffic go all the way up to Ashburn is incredibly important.”

Subsea cables also will deliver ultrafast internet access to Hampton Roads, a capacity attractive to businesses, Twitt notes. Two of the incoming conduits already have committed tenants, but Twitt says he is not ready to disclose them. The cables will also attract more terrestrial telecom carriers, increasing competition in the area, a benefit to local consumers, he adds.

But the biggest benefit is building for the future, creating reliability and resilience to attract tech companies that see opportunities where cables land, Twitt notes. “What we’re doing is building infrastructure for the big guys.”


Virginia Beach at a glance

The annual Neptune Festival takes place at the end of the summer on the Oceanfront. Photo by Joey Wharton, courtesy Virginia Tourism Corp.

Virginia’s most populous city and the 43rd largest in the United States, Virginia Beach encompasses 310 square miles, with 38 miles of beaches along the Atlantic Ocean and Chesapeake Bay. A major East Coast tourism destination, Virginia Beach features a vibrant resort area on its Oceanfront. Along with tourism, major industries include defense, bio and life sciences, advanced manufacturing, maritime and logistics, IT and offshore wind energy. It’s also home to Naval Air Station Oceana, the East Coast base for the Navy’s strike fighter jet squadrons. Regent University and Virginia Wesleyan University are based in Virginia Beach, along with campuses for Tidewater Community College, Old Dominion University and Norfolk State University.

Population
455,000
Top employers
Naval Air Station
Oceana-Dam Neck Annex
Joint Expeditionary Base Little Creek-Fort Story
Sentara Health
GEICO
Stihl
Major convention hotels  
The Founders Inn and Spa
40,127 square feet of meeting space
245 rooms
The Cavalier Resort*
70,875 square feet of meeting space,
547 rooms
Holiday Inn Virginia Beach – Norfolk
22,000 square feet of meeting space,
307 rooms
Wyndham Virginia Beach/Oceanfront
16,247 square feet of meeting space,
244 rooms
The Westin Virginia Beach Town Center
11,266 square feet of event space,
236 rooms
Major attractions
Virginia Beach’s 3-mile Boardwalk in the city’s Oceanfront area attracts tourists from around the world. Virginia Beach Town Center is a centrally located, major mixed-use development with hotels, restaurants, shopping and offices. Visitors also enjoy the Virginia Aquarium & Marine Science Center, which features live animal habitats and the six-story 3D National Geographic Theater. Other attractions include First Landing State Park, Cape Henry Lighthouse and the Military Aviation Museum.
Notable restaurants  
Becca Restaurant & Garden
American, contemporary, beccavb.com
Heirloom
Farm-to-table. heirloomvb.com
Orion’s Roof
Asian-fusion, orionsroofvb.com
Steinhilber’s
American, steinys.com
Tides Coastal Kitchen
Seafood, tidescoastalkitchen.com
Waterman’s Surfside Grille
American, watermans.com
Yiannis Wine & Food
Seafood, steaks, yianniswineandfood.com
*The Cavalier Resort includes three hotels: The Historic Cavalier Hotel, Marriott Resort Virginia Beach Oceanfront and Embassy Suites by Hilton.

Frederick prepares for data center development

Summary

Increasingly, data center developers are eyeing sites in parts of the commonwealth outside Northern Virginia, the largest data center market in the world.

Members of the Frederick County Board of Supervisors decided to put a game plan in place before those developers come to call.

“We wanted to be ready,” says Wyatt Pearson, planning and development director for Frederick County, which sits about 80 miles northwest of Washington, D.C., in Virginia’s Shenandoah region outside Winchester.

At an April 9 meeting, board members unanimously approved amending the county code to provide specific regulations for data centers. Previously, data centers were permitted in most county zoning districts as a by-right use, meaning board members didn’t get a vote.

Currently, Frederick has a single data center, called the Middletown Data Center. It’s a 43,400-square-foot operation.

“Because they’re so small, and because of where they’re located, we’ve never heard anything as far as concerns or issues with them,” Pearson says.

Last year, board members asked county staff to draft regulations for data centers in case bigger, louder operations set their sights on Frederick.

In preparation, county staff studied ordinances around the state, looking particularly closely at Loudoun, Fairfax and Prince William counties. Additionally, Frederick County consulted with Alexis Kurtz, a noise control engineer who is a principal at Washington, D.C.-based Trinity Consultants.

Under the amended ordinance, most zoning districts in Frederick require data center developers to seek conditional use permits, which requires going before the board. The county does have a technology manufacturing district where data centers could be built as a by-right use, but no land currently has that zoning, so developers would still need board approval.

Before getting that OK, a data center developer must now conduct site assessments evaluating the operation’s impact on water, agriculture, noise and other matters.

Once in business, data centers can test and operate generators only during weekdays from 8 a.m. to 5 p.m. A noise study will also be required one year after a certificate of occupancy is granted and every five years after that.

Before voting in April, Frederick County Board Chair Josh Ludwig said the amendment to the ordinance may not cover everything to ensure data centers coexist peacefully with neighbors, but it’s a start.

“That way we have some protections established,” he said.

Southwest fish farm fights the currents

Pure Salmon won’t be purely salmon, but the proposed farm in still plans to raise fish by late 2028 or early 2029, company officials told local leaders.

Karim Ghannam, co-founder and chief investment officer of Singapore-based private equity firm , which backs the project, told the Board of Supervisors during an April 7 meeting that the farm will raise instead of Atlantic salmon. Ghannam, who spoke to supervisors through a video link, cited high costs as a reason for the switch, saying the change was “mainly driven by inflation and construction pricing in the U.S.” Steelhead are similar to salmon in appearance and flavor and are cheaper to raise, company officials said. That’s because the facility won’t have to process saltwater, spokesperson Lala Korall explains.

The menu change is the latest chapter in a project that will occupy 200 acres straddling Russell and Tazewell counties and could bring more than 200 jobs to a region charting a post-coal mining economic future, company officials have said.

Since being proposed in 2013 following a trip by Del. Will Morefield, R-Tazewell, to Israel, the fish farm has faced delays due to ownership changes, terrain challenges, sinkholes and rising costs. Local leaders initially expected fish to be produced by 2025, then by 2028. Some site preparation has occurred, and construction — which will start with the laying of 20 miles of underground pipes — should start later this year, with the first fish coming 3 1/2 years later, Pure Salmon Chief Operations Officer Paul Inskeep said.

Morefield told Russell County leaders that 8F, which took over the company from original owner AquaMaof in 2019, has spent $80 million so far on the project, and plans to spend a total of $300 million. will invest $4 million in water and sewer , and Russell County recently approved $423,000 to finish an access road to the site.

Morefield remains confident the facility will be a huge economic boon to Southwest Virginia despite the delays and lengthening timeline.
“It’s a transformational project,” he says. “It will attract other industries to the region and set a precedent for other companies. … We desperately need jobs. One cornerstone project can really start a movement that will only be positive for this area. For [8F] to stay committed is very encouraging.”

 

Officials envision new life for shuttered state campus

Summary

  • closed in 2020, costing the region 1,600 jobs and $87M.
  • plan envisions housing, retail, and light industry.
  • Site includes 98 outdated buildings, many with asbestos.
  • State allocated $6M for demolition to attract developers.

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-area leaders want to see a second act for about 386 acres that were once home to the , a sprawling state campus that housed people with intellectual and developmental disabilities for decades until the state shut it down in 2020.

The center’s closing also dealt an $87.1 million regional economic blow, according to Megan Lucas, CEO and chief officer of the Lynchburg Regional Business Alliance.

“When the training center closed, we lost 1,600 jobs,” Lucas says. “We lost contracts the state paid for to support the residents of the training center, including food services, laundry services, maintenance of the complex, security and health services. The people who worked at the training center lived in the area, and spent money on housing, groceries and various services. The closure of the training center was a significant economic loss.”

The center’s closure ended a dark chapter of eugenics-driven policies that began 110 years prior and included decades of forced sterilizations in the early 20th century.

In 2022, the alliance, and other partners released a redevelopment plan for the CVTC, envisioning the property being transformed into a mixed-use walkable neighborhood with room for light industrial use, commercial buildings, including restaurants, and housing, including multifamily and single-family homes.

Real estate and investment management firm JLL is selling the CVTC property for the state. The property listing describes the facility as “a prime redevelopment opportunity with extensive James River frontage and views of downtown Lynchburg.”

In March 2024, the state listed CVTC for sale, but didn’t attract the right buyer, according to Lucas. “We found in that first round that qualified developers weren’t responding because the site is filled with 98 buildings that are outdated,” she says.

The complex includes numerous buildings, totaling more than 900,000 square feet, built between 1912 and 1989, but because most contain asbestos, they won’t be candidates for preservation. In fiscal 2023, the state earmarked $6 million to help the property’s eventual developer with the demolition cost.

To make the property more desirable, this year the state agreed to give the $6 million instead to the Virginia Department of General Services to perform demolition work on the complex’s oldest buildings. “Any day now they’re going to start,” Lucas says.

 

Post GreenCity, Henrico tries again

Summary

  • Henrico opens new call for arena-anchored development plans
  • project collapsed amid lawsuits and unpaid land fees
  • Selected proposal expected by December; land transfer set for Jan. 2026
  • Property zoning allows mix of retail, hotel, residential, and office space
  • Legal dispute continues over $1M repurchase and property title

Following the collapse of the $2.3 billion GreenCity project, released in May a new call for developers to submit plans for an arena-anchored development.

Developers must submit their plans by July 28, and supervisors are expected to approve the chosen plan in December. After that, the 93-acre property would be conveyed to the winning development team in January 2026, with a 17,000-capacity arena expected to open in 2028.

The request for interest came while the developers of the failed GreenCity project are being sued by the Henrico County Authority and , the company that was set to operate the GreenCity arena.

In 2022, the county agreed to sell the property to the developers for $6.2 million, and the sale took place on Feb. 28, 2023.

After paying the county $1 million on time, the developers failed to pay the remaining $5.2 million due Feb. 28, the county’s complaint says, and the developers went into default March 13. At that point, Henrico said it would exercise its repurchase option on April 15, paying back the $1 million to the developers in return for the land.

But in a separate lawsuit, ASM Global claimed the developers owed an ASM subsidiary more than $1.5 million, and a Henrico County Circuit Court judge issued a summons to the EDA in April, seeking to garnish the $1 million repurchase fee. The developers filed a motion to vacate the judgment, and they’ve “refused to convey the property to the EDA … unless ASM agrees that the EDA may pay some or all of the repurchase price to [the developers] rather than to ASM,” Henrico says in its complaint.

, executive director of the Henrico Authority, confirmed May 27 that the county has not yet received the land.

Despite the legal turmoil, “I think there’s a high level of excitement to get this restarted,” Bickmeier says.

The property is zoned as a conditional urban mixed-use district that would allow development of an arena, office and retail space, hotels and residential units, giving prospective developers creative freedom, Bickmeier says.

Construction of residences on the adjoining 110 acres, known as Scott Farm, is set to start later this year, under the development of a Markel|Eagle Partners subsidiary, the county says.

$35B Capital One-Discover merger closes

Summary

  • closed its $35.3B Discover acquisition in May 2025.
  • The deal creates a credit card giant and passed federal approval.
  • Capital One agreed to $425M settlement, $265B in investments.
  • did not challenge merger despite concerns.

McLean-based Capital One Financial completed its $35.3 billion acquisition of Services in May, finalizing the merger of the credit card giants announced last year.

On April 18, Capital One received approval from the Federal Reserve and the Office of the Comptroller of the Currency to purchase Illinois-based Discover. The deal was announced in February 2024, and in December, shareholders at both companies approved it.

“This deal brings together two innovative, mission-driven companies that together are poised to deliver breakthrough products and experiences to consumers, businesses and merchants,” Capital One Founder and CEO Richard D. Fairbank said in a statement.

The all-stock acquisition, Capital One’s largest ever purchase, was under regulatory scrutiny. Two Capital One cardholders filed a federal class action lawsuit against Discover and Capital One in July 2024, claiming the megadeal would violate antitrust law, but the case was paused in October 2024, pending further action by the U.S. District Court for the Eastern District of Virginia.

In July 2024, Capital One committed to spend $265 billion over five years on lending, philanthropy and investment if the deal went through. Just before the closing of the deal, Capital One agreed to pay $425 million to settle with customers who were suing the bank, accusing it of cheating them out of higher interest rates applicable to the 360 Performance Savings account.

At the last minute, U.S. Sen. Elizabeth Warren, D-Massachusetts, wrote to the Department of Justice, calling on its antitrust division to block the transaction.

and , which have enjoyed a duopoly, have a long history of alleged coordination, resulting in higher fees for customers and merchants,” Warren wrote. “Capital One has stated that it will move some, but not all, of its credit card volume to the Discover network, meaning it will be negotiating its interchange fees as a credit card issuer with Visa and Mastercard, while separately setting interchange fees on its own network. That is a recipe for coordination among the three networks.”

Gail Slater, the DOJ’s antitrust czar, determined that she didn’t have enough evidence to challenge the deal in court, according to media reports.

Three former Discover board members now serve on Capital One’s board of directors, as it expands from 12 members to 15. Capital One also intends to continue offering Discover-branded , in addition to Capital One cards.

Globalinx grows bandwidth at subsea cable station

Summary

Virginia’s “” is significantly growing its capacity at Globalinx’s subsea internet cable landing station at Corporate Landing Business Park.

A Virginia Beach-based carrier-neutral cable-landing station and data center operator, Globalinx finished construction on four new cable bores at its Sandbridge landing site in late May, a $39 million project.

Since 2018, Globalinx has connected Virginia Beach to Europe and South America through three transatlantic cables carrying ultra-high-speed internet traffic: MAREA, owned by and Meta Platforms/Facebook; BRUSA, owned by Telxius; and DUNANT, owned by Google. Globalinx now hosts the most subsea cables on the East Coast.

“The we built adds another 400% internet capacity to Virginia,” says Globalinx founder and President Greg Twitt.

The first two of the four new subsea cables will likely be ready for use within one to two years. More than 95% of the world’s data traffic travels through subsea cables, and Globalinx’s Virginia Beach landing station is the only confluence of subsea cables in Virginia and on the East Coast between New Jersey and South Carolina.

“Virginia Beach is really a fiber gateway to Virginia,” says Twitt. “These cables and cable landing station are essential for further growth in Virginia in terms of data center development.”

Globalinx is vital to Virginia Beach’s digital port initiative, adds Deputy City Manager Amanda Jarratt. “It’s all about connectivity and the time it takes for your computer to send signals to a server and get a response. The magnitude of capacity that these new cables brings is truly exponential.”
Virginia Beach officials plan to promote the cables to various business sectors, including health care, higher education and finance.

“Because we are so close to the entry point of the subsea cables, they are truly valuable to these sectors,” Jarratt says. She adds that the city hopes to make several economic development announcements associated with the new cables over the next year.

Globalinx plans to start construction this summer on a new facility in its 11-acre Corporate Landing complex to house the additional cables. It is slated to be completed in mid-2026.

Additionally, Virginia Beach has joined the four other South Hampton Roads cities in forming the , a 119-mile fiber optic cable loop connecting with the subsea cables to link municipal networks and accelerate high-speed connectivity.

Manassas aviation startup lands $115 million round

Demand has taken off for Manassas-based ‘s electric short takeoff and landing aircraft, the Ultra Short, with more than 2,200 preorders totaling more than $10 billion.

Now, with $115 million raised in a round that closed in April, the company plans to move from prototype to development, Electra Chief Financial Officer Max Ochoa says.

“There’s a lot of additional headcount and technology that needs to be brought to bear to go from basically designing, developing, and then starting to think about manufacturability and certifiability of a brand-new aircraft,” Ochoa says. “That requires capital.”

The nine-seat EL9 follows on the heels of the company’s EL2 Goldfinch two-seat prototype, which flew for the first time in November 2023 and has now achieved 80 flights, Ochoa says. The company, which launched in 2020, doubled from 40 employees in 2023 to about 80, with plans to grow to about 120 employees, including engineers, in the next year.

Billed as the world’s first ultra short aircraft, the EL9 requires only 150 feet to take off and land and will have a range of 1,100 nautical miles with a 3,000-pound payload. It uses electric motors to blow air over the wings for takeoff and is powered by a hybrid-electric propulsion system that recharges the aircraft in flight, eliminating the need for charging . The company plans to design the aircraft for use by commercial and defense customers. In 2023, it received an up to $85 million award from the Air Force for prototype development. That same year, the company also received a grant and award from the Virginia Innovation Partnership Corp.

The Series B round was led by New Jersey-based venture capital and private equity fund . Prysm’s portfolio includes electric vehicle maker Rivian and Field AI, an artificial intelligence robotics company.

Electra is also scouting sites for a manufacturing plant, with plans to select a location by mid-2026, Ochoa says, adding Virginia is among the states under consideration. Delivery of aircraft is expected to begin in 2029.

Joe Benevento, president and CEO of VIPC, says Electra’s Series B round was the second largest to be announced this year in the United States by an technology company.

“It’s been remarkable to witness the impressive growth trajectory of this homegrown Virginia tech startup,” he says.

Top five for June 2025

The top five most-read daily news stories on VirginiaBusiness.com from May 12 through June 12 included news of layoffs stemming from the Trump administration’s efforts to cut spending on federal contracts.

1 | Newport News Shipbuilding to furlough 471 workers Company spokesperson said furloughs were not expected to last more than five months. (May 30)

2 | Booz Allen CEO says 7% of employees to be laid off About 2,500 employees, mainly in the management consulting business’ civil division, were expected to lose their jobs by the end of June. (May 23)

3 | DHS says it’s canceling $2.4B Leidos contract
A court filing revealed the federal government had terminated a cybersecurity contract that had been disputed by another contractor. (May 15)

4 | Leesburg firm lays off 155 after Navy cancels $170M contract The U.S. Navy notified government contractor Pantheon Data that the Department of Government Efficiency, aka DOGE, was requiring the military branch to cancel its service contract. (May 15)

5 | 41 Virginia companies made the 2025 Fortune 1000 Freddie Mac, the federally sponsored mortgage business, maintained its spot as the top-ranked Virginia-based company at No. 38 on the Fortune 500, down two spots from last year. (June 2)