Connect with us

Virginia

Data centers transformed Northern Virginia’s economy, but residents are wary of more expansion

Published

on

Data centers transformed Northern Virginia’s economy, but residents are wary of more expansion


Julie and Chris Borneman signed petitions, wrote to their local officials, put a sign in front of their house, and joined a campaign against putting the power line through their property.

The recent expansion of data centers and associated power infrastructure is unprecedented, according to Julie Bolthouse, director of land use at the Piedmont Environmental Council, a local environmental nonprofit. She has worked at the nonprofit for 15 years.

“Prior to 2021 I had only worked on two or three transmission line proposals … Within the last three years, I’ve been a participant in stakeholder meetings for at least a dozen transmission line proposals,” Bolthouse said. “We’ve never seen this many transmission lines at once.” 

The Piedmont Environmental Council has been keeping track of all these data centers and associated power infrastructure.

Advertisement

Bolthouse said the power company and state regulator have been approving many of these projects, but there is not enough public information about how much energy the data centers use, and their impact on air and water quality. 

“We need transparency so that we can proactively plan ahead,” said Bolthouse. “Right now, what we’re doing is basically like our utility is handing out blank checks that we, the rate payers, are on the hook for paying for.” 

To that, Aaron Ruby, spokesperson for Dominion Energy, the largest utility in Virginia, said, “as a public utility we are the most heavily regulated industry in Virginia.” 

He said the state regulator reviews the energy costs to make sure everyone is paying their fair share, and the share of energy costs that households pay for has gone down, whereas the share for data centers has gone up.

He also added that Dominion Energy expects the power demand from data centers to nearly quadruple over the next 15 years.

Advertisement

The demand for power has never gone up by so much, so quickly. 

Some of the electricity will come from natural gas plants, but Ruby said most of that will be from renewable energy like wind and solar power.

In a statement, Amazon pointed out that their company has been the world’s largest corporate purchaser of renewable energy for four years, and that 90 percent of the energy the company uses comes from renewable sources.

Local officials say data centers saved their economy during the Great Recession of 2007. Buddy Rizer helped bring data centers to Loudoun County in northern Virginia, as the executive director for economic development for the county for the past 17 years.

He said they brought in data centers because during 2007, the local economy took a big hit when the housing bubble burst. The county lost a third of its tax revenue.

Advertisement

“Data centers have such an inordinate return on investment for a community that there’s nothing else that comes close,” Rizer said. “As an example: for every dollar a data center uses in services in our community. We get $26 back. There’s nothing that comes within $24 of that.” 

He said the revenue from data centers helped transform their local economy, so they could invest in their schools and roads. He added that the tax revenue from data centers is almost a third of the county’s budget, and completely funds their operating budget.

But Rizer has also heard the concerns about how quickly the industry is growing in their area.

“When you’re in any job 17 years, in your community, you become your job … especially a fairly public facing job like mine,” Rizer said. “I have a lot of conversations at the grocery store or when I’m filling my car with gas.” 

He expects the demand for data centers to continue to grow. 

Advertisement

Rizer said cloud computing led to a big wave of data centers, then it was the demand for online services during COVID-19. Now, the big driver of growth is artificial intelligence. 

He said data centers actually do not have a lot more room to grow in Loudoun County anymore. The more recent proposals for new data centers have been in the surrounding counties, Maryland,  states like Kansas and Mississippi, or other countries, like China, India, Japan, and Malaysia

 



Source link

Advertisement

Virginia

Virginia man charged with murder in crash that killed family of 4 on I-75 in Oakland County

Published

on

Virginia man charged with murder in crash that killed family of 4 on I-75 in Oakland County


A Virginia man has been charged with murder in a crash that killed a family of four on I-75 in Oakland County earlier this month. 

Charles Dean Pace, 27, of Glen Allen, Virginia, is charged with four counts of second-degree murder and four counts of operating while intoxicated causing death, according to the Oakland County Prosecutor’s Office. 

The crash happened around 9:10 p.m. on July 1 on southbound I-75 near East Holly Road in Springfield Township. 

Prosecutors allege Pace was driving a Ford F-250 truck on the southbound lanes at a high speed, exceeding 90 miles per hour, while weaving in and out of lanes. 

Advertisement

Pace’s truck struck a disabled Chrysler 300 on the side of the road, killing its occupants, a family of four: 23-year-old Zakeria Sharon Dodson, 24-year-old Tieree Powell, 3-year-old Nalani Powell, and 2-year-old Karter Powell. Pace’s blood alcohol level was more than three times the legal limit, according to prosecutors. 

“Zakeria, Tieree, Nalani and Karter did not die in an accident,” said Oakland County Prosecutor Karen McDonald. “They were murdered because of this defendant’s alleged choices — to drive drunk, to drive fast and to drive recklessly — that created an obvious and unnecessary danger. “This is a rare charge, but we believe we can show the most extreme indifference to human life.”

Pace is expected to be arraigned on Tuesday in the 52-2 District Court in Clarkston, according to prosecutors. 

If convicted on second-degree murder charges, Pace faces up to life in prison, while a charge of operating while intoxicated causing a death carries a sentence of up to 15 years in prison and/or a $10,000 fine. 

Advertisement



Source link

Advertisement
Continue Reading

Virginia

How Virginia became the world’s data center capital and how it’s going – WTOP News

Published

on

How Virginia became the world’s data center capital and how it’s going – WTOP News


The D.C. region houses the world’s largest concentration of data centers, making Virginia the nation’s digital capital.

This article was reprinted with permission from Virginia Mercury. 

Demand for internet access and electronic storage has grown alongside digital technology itself. At the center of that growth are the energy infrastructure and data centers that governments and companies began developing in Northern Virginia in the late 20th century. Today, the region houses the world’s largest concentration of data centers, making Virginia the nation’s digital capital.

That growth has brought major economic benefits for local governments, but it has also divided communities increasingly weary of the facilities’ heavy demands on water and energy, among other impacts.

Advertisement

The commonwealth’s rise as a global digital leader did not happen overnight, said House Technology Committee Chair Cliff Hayes, D-Chesapeake. It was a result of years of persistence, long-term planning and problem-solving.

”This designation for the commonwealth to be the digital capital not only of this country but of the world has taken a lot of stamina, resilience and vision,” Hayes said.

Hayes said leadership also means adapting to new challenges. This year alone, lawmakers passed an entire package of bills aimed at further regulating the industry, while the fight over tax incentives remains largely unsolved.

AOL’s move 

Ashburn’s rise as one of the largest digital infrastructure hubs began in 1997 with the arrival of America Online, or AOL, then the primary internet gateway for many users. Soon after, UUNet/WorldCom and the relocation of the Metropolitan Area Ethernet East, a major internet exchange and traffic hub, helped create unmatched fiber connectivity, turning Loudoun County into a key internet crossroads and destination for other businesses.

Buddy Rizer, executive director for Loudoun County Economic Development, said AOL’s decision to locate in Loudoun helped make the internet mainstream for Americans and anchored the infrastructure that turned Loudoun and Virginia into the world’s leading internet hub.

Advertisement

“You can’t overstate the importance of AOL, right? AOL didn’t invent the internet, but they made it accessible to ordinary Americans at the moment that the commercial internet was starting to take off… by the late 1990s AOL had 20 million subscribers, and roughly half of U.S. homes that had internet were using AOL by 1997.”

Rizer said once Loudoun established core infrastructure and attracted a few anchor companies, growth became compounding: infrastructure drew companies, companies brought more infrastructure and the cycle continued for roughly 20 years.

Data storage and computing explodes 

While data centers have existed in Virginia for decades, the recent rise of artificial intelligence has accelerated demand for the warehouse-like facilities that store and process data around the world.

Ali Mehrizi-Sani, a professor at Virginia Tech, said Northern Virginia had many of the right ingredients to attract the industry even before the state sales and use tax exemption passed in 2008.

“The fact is that we have a lot of customers of data, and that’s really the federal government and their contractors,” Mehrizi-Sani said. “They use a lot of data, so really just proximity to Washington, D.C. has been a main driver of honestly everything in Virginia, including data centers.”

Advertisement

The early development of the internet exchange points in Virginia, combined with large stretches of undeveloped land in Northern Virginia, also helped fuel the industry’s growth. Loudoun County, for example, was far more rural than it is today.

Loudoun recorded 71 operating data centers, the most of any locality in the commonwealth, according to a 2024 study by the Joint Legislative Audit and Review Commission. Statewide, 131 data centers were operating at the time.

“That’s why you see data centers are coming further south, even to areas like where I live in Roanoke and Botetourt County, essentially in search of land,” Mehrizi-Sani said.

He said data centers have also remained in Virginia because electricity rates are comparatively lower than in other parts of the country. Another major factor is the state’s sales and use tax exemption.

Tax breaks and tax gains

In Loudoun, data center revenue has generated substantial tax income year after year, providing the county with more than $100 million annually to support schools and government services.

Advertisement

The revenue stream — estimated at about $890 million in 2018 — has grown enough that the county has reduced real estate tax rates for homeowners every year for the past decade, according to county officials.

Revenue from data centers has also allowed county leaders to propose reducing the personal property tax rate on vehicles beginning in tax year 2026 and eliminating the $25 vehicle license fee.

In 2008, the General Assembly approved a statewide incentive allowing data centers to avoid the state’s 5.3% sales and use tax, which at the time was estimated to save the industry about $1.5 million annually. Data centers routinely refresh computer equipment and software, the exemption can significantly reduce costs every few years.

Now, however, the cost of the tax break has ballooned to about $1.9 billion annually in foregone state revenue.

While the tax break had previously been extended, and former Gov. Glenn Youngkin sought to continue it through 2050 in his final budget proposal, debate over potentially ending the incentive led to months of negotiations and brought Virginia to the brink of a government shutdown after lawmakers failed to pass a budget until the final days of June.

Advertisement

Some lawmakers argued the industry had benefitted enough from the tax exemption. At the same time, concerns over rising energy costs and environmental impacts prompted legislators to look for ways to reclaim some revenue from the trillion dollar industry.

But Gov. Abigail Spanberger led the push to preserve the tax break, arguing Virginia had “made an agreement” and should not reverse course. The exemption is currently set to expire in 2035 unless lawmakers change it before then.

“We know technology is not bad,” Senate Finance Committee Chair Louise Lucas, D-Portsmouth, said last month. “We all can benefit from technology, but we, as a government, have not done a good job in managing the regulations and the impact on our communities, and that’s what we’ve got to rein in. But we’ve also got to rein in the fact that data centers – they’re some of the largest corporations on the face of the Earth, trillion dollar organizations – are getting tax exemptions right now.”

While the exemption ultimately remained in the budget, lawmakers approved a new energy consumption tax on data centers expected to bring in a total of $600 million annually, or $1.2 billion over the biennium. The industry will pay 1.1 cents per kilowatt-hour of electricity consumed up to the cap, with any excess refunded at the end of the fiscal year.

Dominion Energy and Mecklenburg, Northern Virginia, and Rappahannock electric cooperatives reported in 2023 that data centers used about 5,050 megawatts of power that year, based on peak-load forecasts, according to the Joint Legislative Audit and Review Commission.

Advertisement

“What I have found is that some of the businesses coming to our commonwealth, they want to make investments in our communities and in our workforce. The consumption tax, as we’ve conceived of it here in the commonwealth, is one that’s based on fairness,” Spanberger told The Mercury last month.

Lawmakers also approved new water use regulations for data centers in areas designated as water scarce and within the water management area east of Interstate 95.

The changes aim to push facilities away from evaporative cooling systems that consume millions of gallons of water annually and toward more efficient technologies. Also, for the first time, the state will regulate data center noise levels.

The General Assembly also passed bills requiring cleaner backup generators that emit fewer carbon emissions and measures intended to help localities better assess the residential and environmental impacts of proposed facilities.

Public policy 

In 2010, Virginia created a retail and sales tax exemption for data centers, a factor companies have consistently identified as important in site selection.

Advertisement

Loudoun designated large areas for industrial and employment uses where data centers could be built, helping reduce development timelines and support continued growth.

Through successive comprehensive plans, Loudoun also reserved large tracts of land in eastern Loudoun — near Washington Dulles International Airport and the W&OD Trail — for industrial and employment uses close to existing fiber networks and electrical infrastructure. The move ensured a long-term supply of development-ready sites for large-scale data center campuses.

Opposition from residents has grown in recent years, with hundreds of community members attending local government meetings to oppose projects near homes, drinking water supplies and high-voltage transmission lines. Residents have urged lawmakers to impose stronger regulations and seek greater financial contributions from the industry for supporting infrastructure.

What’s next 

Last week, lawmakers ordered a work group to study how the data center tax exemption could be phased out or modified to generate additional state revenue. A report is due in November.

While Spanberger has described the new consumption tax as “fair,” the data center industry disagrees. After lawmakers approved the budget amendments last week, Data Center Coalition CEO Josh Levi said the new tax will “drive away investment and job creation, and tarnish Virginia’s reputation.”

Advertisement

“The message to businesses in all industries is clear — Virginia is no longer a reliable partner,” Levi said in a June statement.

Rizer argued that Loudoun’s and Virginia’s future depends on treating data centers as a foundation for broader technology growth while maintaining a stable and predictable business climate.

“You can’t take success for granted … the principle that made us successful is a predictable, welcoming environment with predictable tax and policy issues,” Rizer said. “The only way that that success can go into the future is by staying grounded in those principles that brought us this far.”

As for federal involvement in an issue that has become a national flashpoint, Democratic U.S. Sen. Tim Kaine of Virginia, who was governor when the tax exemption passed, said states should decide individually how to manage data center growth rather than adopt a one-size-fits-all approach.

“(Data centers are a) global phenomenon, and being a leader in this important area is good for America’s national security and for Virginia’s economy,” Kaine said. “But there are real challenges when it comes to water, power and land use, so local communities must get a say when it comes to how to handle them.”

Advertisement

Virginia has become the state that many others are watching as they weigh to and regulate the growing data center industry. Lawmakers now face balancing the promise of economic investment with mounting concerns from residents pushing back against continued expansion.



Source link

Continue Reading

Virginia

On Virginia’s Crooked Road, the Hills Are Alive—With Bluegrass, Old-Time, and Country Jams

Published

on

On Virginia’s Crooked Road, the Hills Are Alive—With Bluegrass, Old-Time, and Country Jams


After, I headed west, retracing my path up Shooting Creek Road in a rush to spend time on the Appalachian Trail, which I’d hiked from Georgia to Maine six years earlier. That you can spend your day in some of the country’s most beautiful landscapes and still make it to a show or jam by nightfall is one of the underrated features of the Crooked Road.

In the town of Marion, the Wayne C. Henderson School of Appalachian Arts, named for the legendary guitar maker who famously built one of Eric Clapton’s guitars, was hosting a Monday-night jam. Born in Grayson County in 1947, Henderson is such an area icon that a painting of him covers one side of the Skyline National Bank in Independence. This old schoolhouse has been turned into a community hub and arts center. In a former first-grade classroom, I found a dozen people seated in a circle, one person at a time selecting the next song that everyone else then played. Dropping his fiddle to his knee, Jim King, the de facto leader, looked my way and nodded, welcoming a stranger with a smile. His wife, Gert, sat to his right, checking the tuning on her banjo. A bassist stood behind her, another fiddler in turn at his side.

On the drive over, I’d been listening to a set of Smithsonian Folkways recordings by Uncle Wade Ward, a banjo and fiddle player from Independence. He’s been dead for half a century, but his mural remains on a wall there. In those sessions from the early ’60s, he talked about a buoyant fiddle number called “Arkansas Traveler,” one of those “wonderful old tunes…about to fade away.” I’d been at the jam an hour, the sinking sun shining through a bottle of Mountain Dew on the windowsill, when someone asked, “How ’bout we try ‘Arkansas Traveler’?” A young guitarist cued the chords on his iPad, and the fiddle began sawing. Sure, it was wobbly and ragged. It had not, however, faded away.

My last day along the Crooked Road was a rainy Tuesday, and I spent it shuttling between museums. I’d driven through Virginia coal country and McClure, the town where pioneering singer Ralph Stanley was born, then raced two hours southeast to Bristol, getting to the Birthplace of Country Music Museum just before it closed. I teared up when I saw the back of Jimmie Rodgers’s guitar, which read simply “THANKS” in enormous gold letters. It was a note of gratitude to an audience he had likely never imagined when he died from tuberculosis in 1933.

Advertisement

There is only a parking lot now at 408 State Street, right where Bristol splits across Tennessee and Virginia. In July 1927, though, it was home to the Taylor-Christian Hat Company, a building big enough for an ad hoc recording studio set up by the Victor Talking Machine Company. For a few days that summer, musicians rolled in from the surrounding countryside to cut their songs. There was the Carter Family, Ernest Stoneman, and Blind Alfred Reed, all pillars of what has since been called the Big Bang of Country Music. It was that moment, a century ago, when these hardscrabble acoustic sounds began their journey to becoming global exports, when the songs that had once seeped out of these hills began to rush out and form the foundation of country music. It was the moment that made this region’s music famous.



Source link

Continue Reading
Advertisement

Trending