It’s appropriate that Viennasoftwarestartup Antithesis is housed in the former headquarters of Ringling Bros. and Barnum & Bailey Circus’ parent company. After all, Antithesis emerged from stealth mode in February to announce it had raised a Jumbo-sized $47 million in seed funding.
Founded in 2018, Antithesis is an AI-powered cloud platform for autonomously debugging and continuously testing reliability of software. It was developed by a team who previously worked for FoundationDB, a Vienna-based tech startup specializing in databases that was acquired by Apple in 2015.
The five-year seed round was led by Amplify Partners, Tamarack Global and First In Ventures. Angel investors included New York tech firm Yext’s founder, Howard Lerman, and CEO, Michael Walrath.
Antithesis co-founder Will Wilson says the company’s focus is to identify serious bugs and vulnerabilities within software that often evade human detection. “We’re finding the kinds of problems that are very hard for human beings to discover or reproduce and the ones that maybe we didn’t think to go looking for.”
In the highly competitive world of tech startups, it’s not unusual for companies to operate silently for a while before publicly unveiling a new technology or product, and Antithesis was no exception to this strategy.
“From the ground up, we had to build some really new things and some technology that was very hard, and we wanted to be able to focus on that without a lot of distraction and without giving any potential competitors a heads-up about what we were doing,” Wilson says. “And we were very lucky that we were able to raise a lot of money … and hire lots of great people and get lots of great early customers while still being stealth.”
Jonathan Perl, a partner at Colorado VC firm Boulder Ventures, invested when the startup began seeking capital in 2019. “These guys were doing something ambitious in the quality testing part of software development,” says Perl, “and we thought that was a big deal.”
Antithesis has found advantages in the NoVa region’s quality of life, stability, and highly skilled labor pool from government contracting.
“There’s a lot of really great talent in Northern Virginia, especially among engineers,” Wilson says. “They really know their stuff when it comes to computers … but unlike in San Francisco, we’re able to keep them for the long haul.”
This year, 24 Virginia companies made Fortune magazine’s 70th annual Fortune 500 list, which ranks the nation’s largest corporations by total revenue.
Several companies’ fortunes rose, with top-ranked Virginia company Freddie Mac moving up nine spots to No. 36 on the
overall Fortune 500, posting $108.05 billion in revenue last year.
Meanwhile, Virginia’s second-ranked company, beleaguered aerospace and defense contractorBoeing, rose six spots to No. 52 on the Fortune 500. Boeing President and CEO Dave Calhoun plans to step down amid ongoing scrutiny of production problems and fallout from a January incident in which a panel blew out of a Boeing 737 Max jet cabin in mid-air. Boeing agreed in July to plead guilty to federal fraud charges stemming from two fatal crashes.
Fellow aerospace and defense company RTX ranked No. 3 among Virginia companies on the Fortune 500, ascending two spots to No. 55.
Also notable this year was global hotelier Hilton, which jumped 42 spots to No. 389, cementing its post-pandemic turnaround after dropping off the Fortune 500 in 2021 and 2022.
The Virginia company with the biggest slide on this year’s Fortune 500 list was Fortune 500 IT company DXC Technology, which slipped 39 places to No. 294.
“I wanted to commit myself to listen and learn, so I invited students to walk with me at 6:30 a.m. every single Wednesday,” Kelly says, estimating that about 15 students and faculty members took him up on his offer each week to make the 2-mile trek around the university‘s Newport News campus.
One thing that stood out to Kelly from their discussions, he says, was “the quality of the students. Folks were respectful. They asked me, ‘How are you doing?’”
Before taking the helm as Christopher Newport’s sixth president in July 2023, Kelly served as the 42nd superintendent of the U.S. Coast Guard Academy in Connecticut, where, he says, “I truly enjoyed engaging with young people going into the Coast Guard and their families.”
Prior to that, Kelly was stationed with the Coast Guard in Washington, D.C., as an assistant commandant for human resources, responsible for carrying out the armed service branch’s diversity and inclusion strategic plan.
A native of Yonkers, New York, Kelly is himself a 1987 graduate of the Coast Guard Academy and earned his master’s degree in instructional systems design from Florida State University. He and his family moved 15 times during their years with Coast Guard, including a stint in Newport News.
Much of Christopher Newport University’s relatively short history occurred during the tenure of former Republican U.S. Sen. Paul S. Trible Jr. CNU’s fifth and longest serving president, Trible led the university for 26 of its 64 years, from 1996 to 2022. (Adelia Thompson, the university’s vice president for advancement, external engagement and the arts, served as interim president between Trible and Kelly.)
Under Trible’s administration, the commuter school was transformed into a residential campus with dormitories, a student union, a theater, a concert hall and a baseball stadium. His key accomplishments included growing the university’s endowment from $300,000 to more than $64 million.
However, Trible’s legacy was also complicated by “a decline in Black presence, both on campus and in the adjacent neighborhood,” according to a December 2023 investigative report from ProPublica, the Virginia Center for Investigative Journalism at WHRO and The Chronicle of Higher Education. Under Trible’s stewardship, the article reported, “the university pursued policies that thinned the ranks of Black students and faculty even as its continuing expansion eradicated a nearby Black community.”
“We have work to do in that area,” Kelly acknowledges. “We need to do better jobs of showing this is a campus you can come to. We need to make sure we are serving all of the community.”
Strained relations between the university and the local Black community can be traced back to the 1960s, when Shoe Lane, a predominantly Black neighborhood, was dismantled to make way for the school’s expansion.
Today, only a handful of Shoe Lane residents remain near and on CNU property. In April, CNU and Newport News Mayor Phillip Jones announced the formation of a joint task force to research Shoe Lane’s removal and assess the impacts of that decision in subsequent decades, according to a CNU news release, with an aim of paving “the way for informed and equitable strategies moving forward.”
One of CNU’s strategic priorities, announced in March, is to “enhance the overall quality of life in Newport News and Hampton Roads” by being a resource “for residents who seek learning opportunities and for organizations who seek assistance in solving complex problems.”
CNU pledged to be a major contributor to the regional economy and workforce and to provide internship and service opportunities for students from the area.
Another new strategic CNU priority is to “create a stronger culture of inclusion” that prepares students to thrive in a diverse, interconnected world.
To that end, Christopher Newport has stepped up its efforts to recruit students both from its neighboring communities and from around the world.
Funded by a grant from the State Council of Higher Education for Virginia, the university is working with 17 high schools in Hampton Roads communities to help low-income and first-generation students make a successful transition to college.
Efforts to recruit students from nearby schools aren’t new, says Dean of Admission Robert J. Lange III. Before Kelly’s arrival, “we were headed in the right direction,” Lange adds, but “I think President Kelly has energized efforts. He’s put his money and authority where his mouth is,” in positioning CNU as a hometown university for the area.
“We’re in every one of those schools. We counsel them through the process. It’s high-touch,” continues Lange. “It’s allowed us to offer direct admission through the Common Application,” a single online form used by more than 900 colleges and universities. Even students who aren’t immediately accepted profit from the experience, he says, because “if you’re not now eligible, it tells you what you can do to become eligible. It demystifies the process.”
CNU’s signature program, he says, is Community Captains, an early admission, two-year college preparatory program for Newport News public high school sophomores.
Applications from these targeted schools, which serve a high number of Pell Grant-eligible students, are up nearly 30% compared with last year, Lange says. The university’s outreach program even includes some area elementary and middle schools.
Expanding reach
Kelly (right in blue cap and shirt) leads students and faculty on an early morning 2-mile walk around CNU’s campus. Photos courtesy Christopher Newport University
Back in the days when Christopher Newport was a commuter school without a residence hall, “‘out-of-state’ used to be Richmond and NOVA,” Lange jokes.
Now CNU is expanding its reach, escalating efforts to attract students beyond Virginia. Kelly has launched a new initiative that, beginning this fall, will provide out-of-state students with scholarships that are competitive with affordable mid-Atlantic private schools, Lange says.
The university has added a second out-of-state recruiter, he says, and is putting together an advisory board to help CNU understand how it is perceived by out-of-staters. “We’re flying in school counselors. We’re visiting feeder schools out of state.”
The university also has formed a partnership with a company that is able to identify the best prospective students, based on test scores and activities. “We offer them conditional admission without them having to go through full applications,” says Lange. “We build their applications.”
As for international students, their numbers at CNU have historically been quite low because “we have never had a sustained international [recruitment] effort,” according to Lange, but “with President Kelly, it is now a priority.”
Under Kelly’s leadership, CNU is in the process of establishing a partnership with a company that helps place foreign students. It can also assist these students post-graduation with visa applications, Lange adds, helping to keep new talent in Virginia.
With all these efforts, Christopher Newport reports it’s on pace to receive a record number of applications for the 2024-25 academic year.
Applications from students seeking to transfer to CNU from Virginia community colleges and other institutions for 2024-25 were up by about 13% over last year as of early July, according to Jim Hanchett, chief communications officer. He declined to specify the number of applications received.
Students of color/first-time college students made up 26.9% of the undergraduate population in 2023-24, Hanchett says. As of early July, the percentage for the coming year is at about 35%.
Solving problems
Another university strategic priority set out in March is to “advance the power and promise of the liberal arts” in a way that helps graduates “solve real world problems.”
One option that helps meet that strategic goal is the President’s Leadership Program (PLP), a four-year, 18-credit minimum leadership studies minor. Courses cover topics such as values and ethics and theories and perspectives on leadership.
PLP was established in 1998, and there are about 1,100 students currently in the program, “which is roughly one-third of the entire student body,” notes PLP Director Lacey Grey Hunter.
Hunter says Kelly been “very, very” involved with the program since his arrival on campus. “One of my favorite things is PL Pizza, where [Kelly has] met with groups of 10 to 15 students to share pizza” and to discuss the university’s direction, Hunter says. “They ask him questions. He asks questions. He is transparent. They’ve asked him about challenges in his own world.”
Kelly has addressed PLP students about “what it is like to follow a common mission,” Hunter adds. “He talked particularly about 9/11” — when Kelly was on Coast Guard duty, standing watch off the ports of New York and Boston following the 2001 attacks — “and what it means to agree, if needed, to give your life for something.”
In June, Kelly welcomed incoming PLP freshmen to campus to take part in the four-day “Leadership Adventure,” in which students participated in leadership development sessions, team-building events and outdoor activities.
Group activities were designed to bring students together to collectively solve problems or achieve a shared group goal, according to Hunter. Examples include rock wall climbing, escape room events,and building a device with limited supplies to protect a raw egg dropped from the third floor.
Leadership Adventure feels like a summer camp, she adds, “because the students are divided up into cabin colors and spend a heck of a lot of time together.”
Getting an edge
CNU also takes pride in becoming the first school in Virginia to offer an undergraduate certification in research and creative activity. The certificate, which requires 12 credit hours of coursework, will be available this fall.
Undergraduate research is one of CNU’s four educational pillars, explains David A. Salomon, director of student research and creative activity. The others include study abroad, internships and service to the community through the school’s CNU Engage program.
The research and creative activity program got off the ground eight years ago, but SCHEV granted its certification this past spring.Now, “it shows up on [students’] transcript,” Salomon says. “Colleges and companies can see the evidence of their experience.”
Students can research any topic, including “the complexities of scientific phenomena, delving into the nuances of historical events, or examining the intricacies of social dynamics,” he says, no matter whether it’s relevant to their majors. The process produces “students who are more marketable from every perspective. It gives them that much more of an edge.”
For the 2022-23 school year, 37% of all undergraduates at CNU engaged in research or creative activity before graduation, surpassing a 30% goal set by CNU, according to Salomon.
It’s not just the academic programs at Christopher Newport that the new president finds impressive, however. Kelly, who played baseball for the Coast Guard Academy, praises the school’s “phenomenal athletics program,” as well.
During Kelly’s first year on campus, 16 teams were represented in NCAA championship events, CNU’s women’s sailing team advanced to nationals, and the university’s cheerleading squad won a national championship.
“The Captains compiled an overall record of 247-78-5, for a winning percentage of .756, the fourth best ever in CNU
athletic history,” according to Director of Athletics Kyle McMullin. What’s more, 21 student athletes received All-American recognition for their academic and athletic accomplishments for the 2023-24 school year.
Kelly spent much of his first year at Christopher Newport listening. His second year as president, he says, will be about strengthening relationships and being “the No. 1 storyteller for the university.”
That story, Kelly says, is going out to “Richmond, to alumni, to community members who want to support something bigger than themselves.” Now is not a time for dramatic transformation, he adds, but a time to “move the university forward. We’re not in the process of having to rebuild. It’s a time to evolve.”
At a glance
Founded Founded in 1960 as Christopher Newport College, an extension school of William & Mary, Christopher Newport became independent of W&M in 1977 and received university status in 1992. The public university is named for Christopher Newport, the privateer and ship captain who helped establish the first permanent English colony in North America at Jamestown in 1607.
Campus Christopher Newport university is located in Newport News. Its 260-acre campus features buildings with a mixture of architecture styles, from the Greek- and Roman-inspired Mary M. Torggler Fine Arts Center, with its columns and cascading glass rotunda, to the sleek and modern Ferguson Center for the Arts, a regional venue that has hosted touring Broadway shows and famous performers such as Tony Bennett, John Legend and Liza Minelli.
2023-24 enrollment
4,407 undergraduate students
96 graduate students
2% international undergrads
28% minority enrollment
93% in-state undergrads
Employees
Approximately 285 faculty and 715 staff
Academic programs
Christopher Newport University offers more than 90 areas of study, from fine and performing arts to computer engineering and neuroscience. CNU has traditional two-year graduate programs as well as five-year bachelor’s degree and master’s degree programs in applied physics, computer science, environmental science and teaching.
Tuition, fees, room and board*
In-state residents: $28,711
Out-of-state: $43,348
*2023-24 school year Source: Christopher Newport University
On June 13, Virginia Business honored the winners of the 2024 Virginia CFOAwards during the magazine’s annual black-tie banquet at Richmond’s Jefferson Hotel. Photos by Rick DeBerry.
1.L to R: Virginia CFO Awards nominee Paul Huckfeldt of Hooker Furnishings and wife, Annette; 2024 CFO Awards winner Joel Flax of Cohen Investment Group and wife, Gail.
2.L to R: Courtney Browder, Virginia CFO Awards nominee Juanita Parks, Charlie Knight and Krista Gillespie of
3.L to R: Behrad Amirsoltani and wife, Anna, a Virginia CFO Awards nominee with Cassaday & Company; Craig Brown and wife, nominee BJ Brown, both from the Law Office of Craig A Brown.
4.On July 9, Colonial Williamsburg Resorts broke ground on The Shoe, a new, Rees Jones-designed, nine-hole, par 3 gold course. Colonial Williamsburg’s first new golf course in 33 years, it’s expected to open in summer 2025 at the Golden Horseshoe Golf Club. L to R: Jim Thomas of Williamsburg; Colonial Williamsburg Foundation President and CEO Cliff Fleet; Williamsburg Mayor Doug Pons; and Keith Jackson, Colonial Williamsburg’s vice president of hospitality. Photo courtesy Colonial Williamsburg Resorts.
5.L to R: Chris Harman and teammate Josh McCartney, workers for Kentucky energy company Iron Senergy, simulate performing first aid on a volunteer during a mine rescue contest in late June at the Southwest Virginia Higher Education Center in Abingdon. The event was co-hosted by National Mine Rescue Association Post 7, the Metallurgical Coal Producers Association, the Mine Safety and Health Administration, and the Virginia Department of Energy. Photo courtesy Virginia Energy.
A couple of Holstein cows poke their heads through the metal gates of the barn as Mark Sowers fiddles with one of his most important pieces of farm equipment — a smartphone.
Sowers opens an app on his phone that gives him real-time information from the nearly 300 milking cows that roam Huckleberry Dairy, the 700-acre family farm in Floyd County he co-owns with his brother Curtis. The monitoring system, made by Israeli dairy tech company Afimilk, connects wirelessly to sensors strapped to each cow’s leg and relays information such as the number of steps a cow has taken, the animal’s body temperature and other health facts that help Sowers know when a cow might be ready to breed or give birth.
“It’s a Fitbit for cows,” Sowers says.
Sowers uses the phone app to remotely turn on fans and lights in the calving barn or close curtains to provide shade for the animals. A few months ago, while having dinner in a restaurant 30 miles away, Sowers learned about an equipment failure on the farm, checked the machinery with a live video feed on his phone to determine the problem and then ordered the necessary parts — all before dessert.
He graduated with a degree in dairy sciences from Virginia Tech and has used computers on his farm for years. These days, though, information comes faster than ever. “It’s a far cry from dial-up and AOL,” Sowers says. “There’s no going back.”
Fiber-cable access has been an invaluable tool in Sowers’ efforts to modernize Huckleberry Dairy’s operations with the latest technology. Two years ago, Citizens Telephone Cooperative, the local internet service provider, laid fiber optic cable across the green pastures and hills to his dairy. In fact, Floyd County’s population of about 15,600 residents all now have access to high-speed internet from Citizens, a company founded more than a century ago in response to the need for telephones among rural customers in the Blue Ridge Mountains.
Now, rural regions are again racing to catch up with the latest in communications technology: high-speed broadband. Over the last seven years, a firehose of government and private money has been aimed at bringing high-speed internet to places that have never had it, and perhaps never would have, without government intervention. All told, more than $3.3 billion has been made available to finish the job of closing the digital divide in the commonwealth, including $2.2 billion in state and federal funding; $261 million from local governments; and $952 million from internet service providers.
For Virginia’s rural, less-populous regions, high-speed internet is about more than just streaming Disney+ or YouTube videos. Broadband can represent a lifeline for counties that have lost manufacturing industries, jobs and population. In a world of remote work, banking, education and even doctor’s visits, it’s hoped that broadband can help revitalize places that have struggled for decades.
“This gives rural communities a fighting chance. This is like how the Tennessee Valley Authority transformed people’s lives,” says U.S. Sen. Tim Kaine, likening this generation’s rapid broadband expansion efforts to New Deal-era rural electrification projects.
Much of the recent funding for broadband expansion in Virginia came from measures aimed at dealing with the pandemic’s economic fallout. The American Rescue Plan Act (ARPA) provided more than $700 million in federal funding in 2021, with state and local money raising that amount to $750 million. A year later, the Broadband Equity, Access, and Deployment (BEAD) Program, created through the federal Infrastructure Investment and Jobs Act, awarded another $1.48 billion to the state, funding expansion efforts administered by the Department of Housing and Community Development’s Virginia Telecommunication Initiative (VATI).
In late July, the U.S. Department of Commerce’s National Telecommunications and Information Administration (NTIA) approved Virginia’s initial proposal for the BEAD program, which means Virginia can now request access to the $1.48 billion in federal funding. The same week, Gov. Glenn Youngkin announced that VATI had approved $41 million in grants to 20 Virginia localities, which will give access to more than 18,000 homes, businesses and other sites.
“Broadband is not a luxury; it is a necessity for communities to attract businesses and stay competitive, especially in a world that is only becoming increasingly digital,” says Youngkin, a Republican.
Setting a 2028 goal to achieve universal broadband access in Virginia, Youngkin has continued an expansion initiative that began under his predecessor, Democratic Gov. Ralph Northam.
“Virginia has definitely been the leader as far as bringing broadband service to unserved areas through these grant projects,” says Ed McKay, chief operating officer for Shentel Telecommunications, based in Edinburg in the Shenandoah Valley.
Shentel, which provides high-speed fiber optic internet through its Glo Fiber network, received about $61 million in state and federal grants, augmented by $65 million in company investments, McKay says. The company is constructing high-speed networks in Bedford, Campbell, Franklin, Roanoke and Shenandoah counties, having connected fiber so far to about 6,000 of roughly 18,000 unserved households in those localities.
Statewide, the digital divide has narrowed from around 660,000 homes, businesses and community institutions like hospitals and schools lacking high-speed internet access four years ago to about 120,000 such places now.
But those last points of connection often “are the hardest ones to get to,” says Ray LaMura, president of the Broadband Association of Virginia, the lobbying arm of the Virginia Cable Telecommunications Association. “A lot of these folks, they don’t even have water and sewer from the local government. We’re trying to deploy broadband to those folks who are unserved. And we’ve been very, very successful.”
Fiber in Floyd
Russell Janney steers his pickup truck along a gravel road near the Patrick-Floyd county border, past hay bales dotting freshly cut fields. He follows a stream of straw along the roadside, shielding newly planted grass seed where fiber optic lines have been buried below. The Floyd project cost about $50 million, with Citizens investing nearly half that amount and the rest covered by public grants.
“It would still be a major need out here if not for the [government] funding,” says Janney, an engineering manager for the co-op.
Earlier this year, the FCC changed its definition of high-speed internet, increasing benchmarks to a minimum of 100 megabytes per second for download speeds and 20 Mbps for upload speeds. In Floyd, Citizens’ speeds well exceed those standards, delivering 1 gigabit per second download speeds and 500 Mbps upload speeds.
Fast upload speeds are significant for business retention and attraction, says Lydeana Martin, the county’s community and economic development director. “From a business perspective,” she says, “upload speed is a much more important part of the American economy. A person can sell products or teach classes online. That big upload speed is significant.”
Faster internet is already nourishing home-grown businesses in Floyd. Take for example Shane Edgell, a building designer who has performed work for NASA, the Smithsonian Institution, Virginia Tech and even basketball legend Michael Jordan.
He runs his building integrated modeling firm, EdgellBIM, which creates 3D digital models for buildings and interior infrastructure, such as plumbing and electrical systems, out of an office above a restaurant in downtown Floyd.
“The reason I am here is only because Citizens got fiber to the county,” Edgell says. “I work with images so large, with constant uploads and downloads, I would’ve had to move to Roanoke or Blacksburg or have an office there. Now, I can work from home or my Floyd office.”
It’s also hoped that expanded high-speed internet access could stem population declines in rural areas like Southwest Virginia, which lost nearly 10% of its population between 2010 and 2020, mostly through outmigration, according to the U.S. Census Bureau. Floyd and Montgomery (home to Virginia Tech) were the only counties west of Roanoke that saw population increases during the 2010s.
A report earlier this year from the Federal Reserve Bank of Richmond concluded that “hybrid and remote work arrangements might enable moves to more affordable small towns or rural areas that also have access to broadband and have desirable amenities such as lakes or mountains.”
A 2023 survey of 6,000 Cox Communications customers found that 70% of customers under age 30 say they would be more likely to stay in their community if it had high-speed internet.
“Telework is a huge part” of broadband expansion efforts, says Margaret-Hunter Wade, director of public affairs for Cox, which has expansion projects underway in the Roanoke and Hampton Roads areas. “The ability to stay where you are and do the work that you want to be able to do is incredibly important for customers and for the places where they live.”
The pandemic has significantly increased the number of people working remotely, many from rural communities. The Weldon Cooper Center for Public Service at the University of Virginia found that in 2023, more than three-quarters of Virginia’s rural counties outside urban areas had more people moving in than out, the highest percentage since 1975. Much of that growth was attributable to remote work.
“Everyone can do it now,” says Donna Smith, CEO and general manager of Citizens. When it came to high-speed internet, “there used to be haves and have-nots. Now everybody has it.”
Keeping it rural
In 2023, King and Queen County on the Middle Peninsula became the first Virginia county to achieve 100% broadband deployment. One of the state’s least populous counties, with 6,700 residents, King and Queen’s population has been up nearly 2% during the past three years, according to the Census Bureau.
“Anecdotally, we see more people working from home and doing business from here,” says Vivian Seay, the county administrator.
The six-county Middle Peninsula region sees about 33,000 workers commute outside the region daily, traveling to Richmond, Fredericksburg and even Northern Virginia. That’s the highest number of job commuters in the state, according to the Middle Peninsula Planning District. Hoping to increase the number of people who can work remotely from the Middle Peninsula, King and Queen County broke ground on a 7,000-square-foot, county-owned telework center expected to open in December. The broadband-equipped facility, which will provide workspace and meeting rooms for companies and individuals, also will be home to a Sentara Health medical clinic and planning district offices.
Across the Rappahannock River on the Northern Neck, Lancaster County, with a population just over 10,000, expects broadband to be fully deployed countywide by ISP All Points Broadband next year, says Cherie Kiser, chair of the county Broadband Authority. The Northern Neck Planning District Commission received $18.8 million in state and federal grants to bring high-speed internet to 7,200 households in all five counties on the peninsula.
“Businesses are coming in looking at broadband capabilities, not just for their businesses but for their workers,” Kiser says. “We have to be able to attract and keep workers who then will want new schools, more teachers and access to health care. You can’t operate a business these days without broadband.”
Citizens Telephone Cooperative CEO Donna Smith oversees broadband expansion efforts in Floyd County. Photo by Don Petersen
Firefly Fiber Broadband, a Palmyra-based subsidiary of Central Virginia Electric Cooperative, recently announced that it has completed 30,000 broadband connections in Central Virginia as part of its $288 million Regional Internet Service Expansion (RISE) project. The initiative was funded by $79 million in VATI state grants, $32.8 million in local matching funds from the counties and $176.1 million from Firefly and utility partners, including Dominion Energy and Rappahannock Electric Cooperative, according to Firefly spokesperson Melissa Gay.
Firefly and other partners are investing $23.3 million in adjacent counties to reach another 3,606 unserved locations, says Gay, noting the complexity of the projects and funding.
“The funding and construction,” she says, “can be compared to a handmade rural country quilt with sections contributed by various private and public groups.”
Final hurdles
ARPA funds must be spent by the end of 2026 or returned to the federal government. And several hurdles are slowing the race to get fiber to the last locations before that funding deadline.
Thousands of utility poles must be replaced or made ready for fiber hookups. Utility companies such as Dominion and American Electric Power are working with internet service providers to complete that work by 2026.
“We’re in a good spot to have everything done by the 2026 sunset date,” says Matt Heartwell, Dominion’s manager of rural broadband and grid solutions. Dominion is installing 1,100 miles of “middle-mile” fiber through partnerships with local governments and internet service providers in more than 30 counties, with internet companies providing last-mile connections. Those fiber optic cables will also serve to support and modernize the electric grid, which is Dominion’s priority. “Middle-mile fiber serves a dual purpose as it relates to connecting the grid for reliability and new technology, as well as helping ISPs reach unserved areas of the commonwealth,” he says.
Along 216 miles of the Blue Ridge Parkway from the Shenandoah Valley to the Virginia-North Carolina border, providers must wait for permits from the National Park Service to cross beneath the scenic road, a process that takes months and has slowed some broadband work. And in April, rail companies Norfolk Southern and CSX filed federal lawsuits challenging a new state law that accelerates broadband expansion across rail lines. Earlier this year, a federal judge dismissed a similar lawsuit filed by the Association of American Railroads.
One other hurdle to be crossed is ensuring people have basic digital literacy skills to understand how to use high-speed internet to improve their lives.
“It’d be a real shame on the other end of that to find out that people aren’t taking advantage of what we spent all this money for,” says Bryan Byrd, Shentel’s government affairs specialist.
Back in Floyd, Citizens held well-attended education sessions for local broadband customers, says Smith, the cooperative’s CEO. Now, they’re just going to celebrate with a big party on Aug. 3, complete with food trucks and a rock ‘n’ roll band. They’re calling it the “Gig Finale.”
“I love Floyd,” says Edgell, who founded his high-tech design company in his hometown. “It’s a unique, small, mountain town. I love the music, the arts, the community and the seclusion. Being connected without being in a big city is really cool.”
Editor’s note: This story has been updated since publication of the August 2024 issue.
PERSONAL MOTTO: She believed she could, so she did.
WHAT MAKES ME HAPPIEST: I am happiest outdoors doing almost anything or curled up with a book and my dogs.
HOBBY/PASSION: I love to read and to learn — be it podcasts, audiobooks, physical books or life experiences.
HOW I CHOSE MY CAREER: I went to school to be an architect and found that construction gave me the freedom to run around and engage in things that used both my education and my proclivity to push for action and test boundaries in good measure. It’s been about saying yes and what’s the worst that can happen in the face of opportunities and seeing what choice you get to make next.
DID YOU KNOW? The Virginia Museum of Fine Arts has selected Gilbane to manage construction of its $190 million renovation and expansion project, which includes the approximately 173,000-square-foot new James W. and Frances G. McGlothlin Wing II and 45,000 square feet of renovations to the existing building.
Virginia is reaping thousands of jobs and huge tax revenues as Amazon.com revamps its U.S. delivery network. The e-commerce giant is opening major distribution centers and sorting facilities across the commonwealth as part of its nationwide strategy to get goods to consumers faster and stay one step ahead of competitors like Walmart and Target that have seen a surge in online orders, as well as newer online upstarts Shein and Temu.
Already the largest industrial tenant in North America, Amazon has leased, purchased or announced plans for more than 16 million square feet of new warehouse space across the nation this year as part of its distribution network upgrade. Traditionally relying on a centralized network, the Seattle-based company with its East Coast headquarters in Arlington County is developing nine regional distribution networks across the country to ensure customers can obtain products quickly from nearby fulfillment centers. Doing so necessitates placing inventory in more warehouses nationwide.
“Amazon’s network is continually optimized to position products close to the demand location, requiring additional investments when activity in a region reaches certain thresholds,” explains Jason El Koubi, president and CEO of the Virginia Economic Development Partnership.
Across Virginia, more than 30 warehouses, 11 fulfillment and sortation centers and 16 delivery stations bear the Amazon brand. The online retailer opened its first Virginia fulfillment facility in Sterling in 2006 and continues to expand across the state, investing more than $109 billion and creating more than 36,000 jobs since 2010. Additionally, Amazon has contributed more than $72 billion to the state’s gross domestic product. Those investments have helped solidify Virginia’s position as one of North America’s prime supply chain hubs.
“We have a very strong and positive relationship with Amazon,” says El Koubi. “Amazon plays a very important role in the ecosystem of distribution and supply chain operations in Virginia and is one of the core providers of logistics-related job growth. It has a very sophisticated network that continues to be optimized to position products close to demand centers.”
Big presence
In 2021, Amazon chose Stafford County as one of its East Coast hubs where items from third-party vendors are sorted, repacked and sent to other distribution centers. The 630,000-square-foot cross-dock fulfillment center in the Northern Virginia Gateway industrial park opened in 2022, bringing 500 jobs to the Fredericksburg and Stafford region.
Virginia’s newest Amazon facilities — a 650,000-square-foot robotics fulfillment center in Henrico County that created more than 1,000 full-time jobs and a 1 million-square-foot non-sortable fulfillment center in Augusta County with 500 jobs — opened in 2023. A last-mile distribution center in Roanoke is expected to be up and running by late this year.
Also set to open in time for the holiday season is a 219,000-square-foot Virginia Beach delivery station, with an adjacent 650,000-square-foot robotics fulfillment center coming online in 2025. Combined, Amazon is investing $350 million in the facilities, which are expected to bring more than 1,000 jobs to Hampton Roads. They join other Amazon sites in Hampton Roads, including the company’s first robotics fulfillment center in Virginia, a $230 million, 3.8 million-square-foot, five-story robotics behemoth in Suffolk that lays claim as the state’s second largest building behind the Pentagon, and a $50 million, 650,000-square-foot fulfillment center and career center in Chesapeake. Amazon’s Suffolk facility employs about 1,500 workers, while the Chesapeake center has about 1,000 employees.
The Hampton Roads Alliance, the regional economic development organization, has worked with Amazon since 2020, when the Fortune Global 500 online retailer and tech company announced it would build the distribution centers in Suffolk and Chesapeake.
“In just a few short years, Amazon has become one of Hampton Roads’ major employers,” says Alliance President and CEO Doug Smith. “The company has proven to be a strong corporate partner and an ally in recruiting and retaining the next generation of talent.”
In addition, Amazon operates three Prime Now fulfillment centers in Virginia Beach, Springfield and Richmond, which offer one- and two-hour deliveries for Amazon Prime customers in Virginia. Amazon also has 16 Whole Foods Markets and five Amazon Fresh outlets across the commonwealth.
Most notable about the company’s Virginia presence is its $2.5 billion East Coast headquarters, HQ2, which it opened in Arlington in 2023.
Last year, Amazon also announced that it will double its investment in data centers so far across Virginia, spending another $35 billion by 2040 and adding at least 1,000 jobs.
In all, Amazon has 39,000 full- and part-time employees in Virginia. The retailer also works with more than 11,000 Virginia-based independent sellers — mostly small and medium-sized businesses.
‘Huge impact’
Virginia’s pro-business environment drew Amazon to the commonwealth.
“Strong local, state and regional support have made Virginia attractive to Amazon,” says Amazon spokesperson Sam Fisher, adding that the company is constantly exploring new locations when deciding where to develop sites to best serve customers.
“Virginia is a great state to do business, and the support we’ve received from day one has been key to our ability to invest, grow, hire and innovate on behalf of our customers.”
Amazon is investing $350 million to construct a fulfillment center and a delivery station in Virginia Beach. Photo by Mark Rhodes
Amazon’s Henrico Fulfillment Center, built on 199 acres adjacent to Richmond International Raceway, brought more than 1,000 jobs to Central Virginia.
“This has had a huge impact for us,” says Henrico Economic Development Authority Executive Director Anthony Romanello. “Amazon has done everything they said they would do in terms of investments and hiring.”
The largest building in Central Virginia, the fulfillment center spans 2.7 million square feet and is Amazon’s second robotics center in Virginia. The company worked with Texas-based Hillwood Development to secure the property, which was purchased for $7.7 million. Hillwood frequently joins Amazon in warehouse development projects nationwide.
A pandemic-fueled increase in e-commerce propelled much of Amazon’s expansion, with the company snatching up 40% of U.S. warehouse space in 2020.
In Northern Virginia, Amazon’s growth has helped keep industrial sector vacancy rates in the low- to mid-single digits, says Nate Edwards, Cushman and Wakefield’s senior director of Washington, D.C., metro research. By contrast, more than 20% of office space in the D.C. region sits vacant as significant numbers of employees have shifted to remote and hybrid work.
“COVID was an excellent thing for Amazon and industrial brokers,” says Cushman & Wakefield Executive Director Jon Lawrence, who notes that skyrocketing demand for industrial space has led to double and triple rental rate increases. “Amazon has eaten up a lot of warehouse space in Northern Virginia. I’ve been doing this for 37 years and have never seen anything like the last four years.”
As the largest industrial tenant in Northern Virginia, Amazon has inventory in about a dozen 60,000-, 80,000- and 100,000-square-foot buildings in Northern Virginia. “There’s not 1 million square feet in one building but broken into a bunch of buildings in Ashburn, Chantilly and Manassas,” Lawrence says. “There’s no zoned land left in Northern Virginia to build warehouses, and supply is incredibly limited.”
Competitors have been watching Amazon’s growth and trying to emulate it. For example, online furniture and home décor retailer Wayfair has a large distribution center in Manassas. “Everyone sees what they’re doing and figures out how to do it as well,” Lawrence says, “but it’s safe to say no one is close to being as successful as Amazon.”
However, he believes that Amazon will eventually put the brakes on its warehouse growth. “Nobody can keep doubling or tripling their business forever. There will be a pause. At some point in time, they have to have enough warehouses to distribute products in the next 24 hours.”
‘Success begets success’
More than 4,600 companies, spanning warehousing and storage, road, rail, air and maritime freight transport make up Virginia’s diverse logistics ecosystem for distribution and supply chain operations, notes El Koubi. Other leading logistics companies, such as FedEx, UPS, DHL, Patton Logistics, InterChange Group, and Lineage Logistics, have also made significant investments in storage and distribution facilities in Virginia.
Those investments are the upshot of Virginia assets such as the Port of Virginia and Dulles International Airport, as
well as the state’s strategic mid-Atlantic location. “Companies can get to 75% of the U.S. population in two days or less by road,” El Koubi notes. “As the nation’s mean center of population has shifted to the South over the past decade, that
gives Virginia an advantage.”
Hampton Roads has always been a hub for logistics companies, says Smith. “The region’s labor force has plentiful talent for companies looking to distribute their goods both domestically and internationally.” He adds that much of the region’s current industrial development has focused on western Hampton Roads, where Amazon, Target and Ace Hardware have opened distribution centers.
Demand for industrial and distribution space has spiked in the region. CoStar Group, a major provider of commercial real estate data and analytics, noted in February that less than 4% of industrial space is available in Hampton Roads, one of the tightest availability rates nationally. Demand has led to multiple speculative projects, with industrial construction seeing a 63% jump in the market’s pipeline during the first quarter of 2024.
Currently, 4.2 million square feet of industrial space are under construction, including Amazon’s Virginia Beach fulfillment center. According to CoStar, this is only the third time in a decade that more than 2 million square feet of distribution space has broken ground in a single quarter.
“In this case, success begets success as industrial developers have stepped up to meet the ever-increasing demand,” Smith says.
As e-commerce mushroomed over the past few years, record absorption followed, says Geoff Poston, a Cushman & Wakefield | Thalhimer senior vice president who leads the company’s Hampton Roads industrial group. “The industry has been on a crazy run the past four or five years,” Poston says. “E-commerce is a large part of what has driven leasing and absorption activity. Developers were racing to build more space.”
Poston adds that the industry is still doing very well but not at the same historic rates as over the past three years, a byproduct of what he calls a COVID hangover effect. “All that demand came at one time,” he says. “Retailers sold two to three years of inventory in one year. Leasing rates rose dramatically, and properties were being leased. All of a sudden, demand among tenants cooled off.”
Still, logistics companies like Amazon are continuing to invest and expand in Virginia.
“We see a lot of potential for growth,” El Koubi says, noting that VEDP has made logistics one of its target economic growth sectors.
“Logistics is one of the most rapidly growing sectors in Virginia and a sector in which Virginia is at an advantage,” he adds. “One of Virginia’s great strengths is our economic landscape is very diverse. Almost any kind of business operation can excel here.”
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