Governor Glenn Youngkin (R-VA) announced a major $3 billion investment that would build a key data center in the state, adding that his state is now the “data center capital of the world.”
CleanArc Data Center’s investment will create a new state-of-the-art data center campus in Caroline County, and 50 new jobs in the state, the governor promised Thursday.
CleanArc said the largest economic investment in the county’s history will bring revenue and employment to the Commonwealth, which the governor said will expand the “high quality of life Virginia is known for.” The governor added that the investment resulted from “strong collaboration” between private and public leaders.
Over 600 data centers from 60 different operators already exist in Virginia, which have been drawn to the state for its robust workforce, geographic location to the federal government, tax incentives, abundant power, and space for development.
Data companies are incentivized to relocate to the commonwealth due to its tax incentives for equipment and retail purchases, and accessible state and federal grants.
In return, data centers are required by Virginia law to create at least 50 new jobs, invest at least $150 million in the commonwealth, and pay their employees 150% of the local average wage, which is seen by the state as an incentive to host the data centers.
Aside from the industrial expansion, environmental activists claim that the investment brings several harmful and negative externalities, such as the suction of power from the community, inflated electricity prices, damaged drinking water, expansive power outages, and increased real estate prices.
Since construction on data centers began in Virginia in the late 1990s, 42 activist groups have campaigned to slow, stop, or further regulate data center development.
The efforts to push back against data center development have intensified since a 2024 report from the Virginia legislature’s Joint Legislative Audit and Review Commission revealed that data center energy demand would roughly triple in the next 15 years if developments remained unregulated.
MASSIVE VIRGINIA DATA CENTER DEVELOPMENT SPARKS DEBATE ABOUT PRICE OF TECHNOLOGICAL ADVANCEMENT
In the past, Virginia residents challenged the Digital Gateway, a $24.7 billion push to create 37 data centers in the state.
In May, residents fought a data center expansion project worth $165 million, which would eat into the boundaries of the Bren Pointe residential community in Fairfax County.