{"id":982,"date":"2026-07-09T10:39:55","date_gmt":"2026-07-09T10:39:55","guid":{"rendered":"https:\/\/modernhomejournals.com\/?p=982"},"modified":"2026-07-09T10:39:55","modified_gmt":"2026-07-09T10:39:55","slug":"how-northern-virginia-became-data-center-alley","status":"publish","type":"post","link":"https:\/\/modernhomejournals.com\/?p=982","title":{"rendered":"How Northern Virginia Became \u2018Data Center Alley\u2019"},"content":{"rendered":"
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\u201cFaithful Servant, now at Peace,\u201d reads one heart-shaped headstone in Tippets Hill Cemetery. But in the background of this final resting place, there is an incessant whirring sound and a shrill beep that blares again and again.<\/p>\n

Read more Trump Is Deploying Every U.S. Refugee Officer to Just One Country<\/a><\/p>\n

That\u2019s because the small, historically Black burial ground in Loudoun County, Virginia, is surrounded on all sides by data centers. The cemetery\u2019s few parking spaces had construction vehicles parked in them when NOTUS visited in early June.<\/p>\n

The cemetery \u2014 and Northern Virginia at large \u2014 didn\u2019t always look like this. At the turn of the century, there were a handful<\/u><\/span> of data center campuses in Loudoun, Prince William and Fairfax counties \u2014 a region now known as data center alley.<\/p>\n

Today, those counties are home to more than 300 data centers. Almost 200 more are expected to go up in the coming years. Loudoun specifically has the highest concentration<\/u><\/span> of data centers in the world.<\/p>\n

But that title may be in jeopardy. Public sentiment towards data centers has soured, with opponents pointing<\/u><\/span> to rising household utility bills and environmental concerns. Politicians are weighing<\/u><\/span> how to balance constituent demands with a behemoth industry those same constituents rely on for cloud computing and county revenue.<\/p>\n

\u201cVirginia has our biggest concentration, but as the old saying says, \u2018Don\u2019t put all your eggs in one basket,\u2019\u201d a senior executive at a data center company told NOTUS. \u201cBased on what happened this year, it\u2019s further emphasis that we clearly have to spread our business around. Our customers are going to be looking for the lowest cost of occupancy \u2014 that\u2019s just math.\u201d<\/p>\n

\n<\/div>\n

Ramping Up<\/b><\/h2>\n

A big part of Northern Virginia\u2019s appeal is its geography.<\/p>\n

Loudoun County\u2019s proximity to D.C., CIA headquarters and the Pentagon made it an early hot spot for the technology contractors that intelligence agencies and the military have increasingly depended on since World War II, said Ali Fard, an assistant architecture professor at the University of Virginia who wrote a book about \u201cgrounding\u201d cloud computing<\/u><\/span>.<\/p>\n

The county became ground zero for the internet in the late-1990s, when telecommunications companies UUNET and AOL<\/u><\/span> both moved their headquarters to Ashburn. AOL, the once ubiquitous dial-up internet giant, installed a massive network of fiber to create an \u201cinformation superhighway\u201d around its campus, laying the foundation for Northern Virginia\u2019s data center industry with cheap and plentiful power, Fard said.<\/p>\n

Things accelerated in 2008, when the nation was reeling from the financial crisis and housing market crash. Northern Virginia was hit hard. Loudoun\u2019s regional economy was 81% dependent on residential real estate at the time, Buddy Rizer, the county\u2019s economic development director, said in a statement shared with NOTUS.<\/p>\n

\u201cWe lost a third of our tax base almost overnight. I came in with one clear goal: build a stronger, more diverse commercial tax base to stabilize our future,\u201d wrote Rizer, who assumed his role in 2007. \u201cThat\u2019s when I saw an opportunity in data centers.\u201d<\/p>\n

\u201cThe data centers kind of bailed them out,\u201d said Sarah Parmelee, a land use representative with the Piedmont Environmental Council. \u201cThere was a bunch of built-out infrastructure that Loudoun needed to figure out how to pay for, and data centers took up the slack.\u201d<\/p>\n

Loudoun also had the Potomac River, which up until a major sewage spill<\/u><\/span> this year was a \u201creally unflappable and incredible water source,\u201d Parmelee said. It also has one of the largest reclaimed water systems in Virginia, a major attraction for the data centers that rely on those systems to cool tenants\u2019 servers.<\/p>\n

To seal the deal, Virginia lawmakers approved a tax break for data center operators in 2008 that invested<\/u><\/span> at least $75 million and created 100 new jobs. (The criteria are currently<\/u><\/span> $150 million in investment and 50 new jobs.) The sales and use tax exemption applies to equipment<\/u><\/span> including generators, HVAC systems, water pumps and storage tanks, cabinets, battery racks, and software.<\/p>\n

At the time, policymakers the exemption would cost the state $1.5 million in lost revenue. In 2025, it saved data centers $1.9 billion<\/u><\/span>, making it Virginia\u2019s largest tax break.<\/p>\n

The data center company executive, granted anonymity to discuss the sensitive dynamics of an industry under intense scrutiny, said the exemption gave Virginia a \u201cleading edge\u201d when they were considering where to build.<\/p>\n

The stage was set, and the need emerged with the advent of cloud computing. Data that had long been stored on consumers\u2019 personal devices had to be stored in centralized data centers, which began as smaller, fairly innocuous buildings, Fard told NOTUS. The COVID-19 pandemic kick-started the \u201cwork from home\u201d era, intensifying demand.<\/p>\n

The release of OpenAI\u2019s ChatGPT in late 2022 marked a new era of computer processing power needs. Companies like Google, Amazon and Microsoft \u2014 often referred to as \u201chyperscalers\u201d \u2014 began spending hundreds of billions of dollars a year to build new data centers to meet the enormous demand. Some projections expect the industry to spend<\/u><\/span> roughly $7 trillion in data center construction by the end of the decade.<\/p>\n

Loudoun rolled out the red carpet for data center developers, slashing its approvals process to just six months.<\/p>\n

\u201cI was literally flying around the country meeting with major players like Amazon, Microsoft, Equinix, and Digital Realty, pitching Loudoun as the best place in the world to build digital infrastructure,\u201d Rizer wrote. \u201cWe had empty buildings from the dot-com bust, tons of unused fiber in the ground thanks to AOL, available land, and power.\u201d<\/p>\n

Read more Graham Platner\u2019s Collapse Is a \u2018Reckoning\u2019 for Political Vetting<\/a><\/p>\n

By 2016, Loudoun County officially became home to the world\u2019s largest concentration of data centers. Today, data centers generate almost half of its property tax revenue<\/u><\/span>.<\/p>\n

\n<\/div>\n

A Changing Landscape<\/b><\/h2>\n

Data centers first came onto Elena Schlossberg\u2019s radar in 2014. She discovered, she said, that the construction of a transmission line set to cut through her property was triggered by a single customer: Amazon. The company was building a data center campus in Haymarket as part of a $600 million cloud computing contract<\/u><\/span> with the CIA.<\/p>\n

\u201cThere was really not much we could do,\u201d said Schlossberg, a rural Prince William County resident who leads an anti-data center coalition. \u201cWe would be not only sacrificing our property through eminent domain, we would be paying for that abuse.\u201d<\/p>\n

Today, her county \u2014 located just south of Loudoun \u2014 is home to 55 data centers, with 75 more planned or under construction, according to a county database<\/u><\/span>. Between 1986 and 2016, only 10 were constructed county-wide. That number surged in 2017, when six were built \u2014 four of them by Amazon. Another wave of construction came around the AI boom, with 20 centers built in 2024 and 2025.<\/p>\n

But developers looking to build in Prince William County are increasingly running into backlash.<\/p>\n

The county almost became home to the world\u2019s largest data center campus, known as the \u201cDigital Gateway.\u201d Pitched in 2021 and approved in 2023, the project \u2014 a sprawling 2,100 acre data center campus on the edge of the historic Manassas National Battlefield Park \u2014 was halted by resident lawsuits.<\/p>\n

Prince William County and one of the two data center operators, Compass, abandoned the project this spring after an appeals court upheld a decision to block the necessary zoning.<\/p>\n

The second data center operator, Quality Technology Services (or QTS), appealed to the Virginia Supreme Court<\/u><\/span> but fully abandoned the project last week. The news was first reported by Bloomberg<\/u><\/span>, which cited anonymous sources saying company executives didn\u2019t think it was worth it to continue the legal fight.<\/p>\n

In a statement to NOTUS<\/u><\/span>, a spokesperson for QTS confirmed that although the company remains tied to Virginia, it \u201cwill proceed with a responsible and orderly termination of project activities, consistent with our commitments and values as a company and community partner.\u201d<\/p>\n

Activists see the withdrawal as a victory.<\/p>\n

\u201cThey messed with the wrong people,\u201d Schlossberg told NOTUS.<\/p>\n

\n<\/div>\n

Tradeoffs<\/b><\/h2>\n

In 2025, John McAuliff was running for the Virginia House of Delegates as a Democrat. His district, which includes western Loudoun, is split almost down the middle<\/u><\/span> politically.<\/p>\n

But McAuliff found something everyone wanted to talk about: data centers. He said he had to \u201cconvince\u201d his team that this was an issue worth investing time and resources in. It was \u201ca bit of a risk,\u201d he told NOTUS, but it ultimately paid off.<\/p>\n

McAuliff won the delegate seat in fall 2025. In his first term, lawmakers passed his bill<\/u><\/span> barring the Department of Environmental Quality from issuing air permits for data center applications unless their generator emissions fall below a certain threshold.<\/p>\n

The Virginia legislature as a whole seemed to wake up this spring to the negative public sentiment surrounding data centers. While a push to sunset the data center sales and use tax exemption early ultimately failed, Virginia did pass a first-of-its-kind tax<\/u><\/span> on data center energy consumption.<\/p>\n

The speed with which that political calculus shifted<\/u><\/span> shocked even advocates and lawmakers who had been working for years to rein in the rampant growth of data centers in the state. Industry executives were surprised, too, and have started to discuss focusing on some of the 37 states<\/u><\/span> with the sales and tax use exemption that are more interested in their business.<\/p>\n

The data center industry contributes roughly $9 billion of yearly economic growth to Virginia\u2019s state economy, according to a 2024 economic audit<\/u><\/span> commissioned by the Virginia General Assembly in 2023. Most of those benefits derive from constructing, rather than operating, data centers, that noted.<\/p>\n

But as construction accelerates, elected officials and voters are seeing skyrocketing utility bills<\/u><\/span> they blame on data centers<\/u><\/span>. A paid for by the Data Center Coalition, which reviewed the analysis prior to its release, pointed to inflation, grid resilience, market structure and other factors in rising rates.<\/p>\n

Ultimately, fast-changing communities are questioning if the trade-offs<\/u><\/span> are worth it.<\/p>\n

\u201cWe can\u2019t just pretend that it\u2019s just revenue,\u201d McAuliff said. \u201cWe need to look at the other side, too.\u201d<\/p>\n

Read more Rep. Garc\u00eda Faces New Meddling Accusations Ahead of Midterms<\/a><\/p>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

The region is considered the data center capital of the world. 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