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"More People Paying Closer Attention" to Northern VA Data Centers Despite Tax Benefits

"More People Paying Closer Attention" to Northern VA Data Centers Despite Tax Benefits

Northern Virginia is the data center capital of the world – it is three times larger than any other data center epicenter anywhere on Earth. 

Loudoun County, Ashburn, specifically, and Prince William County are especially major players in the data center industry. While these facilities pay commercial taxes that offer immense benefits to local communities, the construction of new data centers has recently faced scrutiny in the area. 

Fauquier Now spoke to Rob Faktorow, vice chairman of commercial real estate and investment giant CBRE. He said, “It [Northern Virginia] encompasses almost 50% of the data centers in the United States.” 

However, Faktorow went on to note that not everyone is thrilled about the growth the region has experienced, “When it’s in your neighborhood, and you’re concerned about what’s going on in the property next door, yeah — you pay closer attention. And as the market’s grown, more people have been impacted, so more people are paying closer attention.”

There have been noise complaints from some local residents, with one major project – the 270-acre Devlin Technology Park in Bristow – put on hold by developers after people in the area expressed concerns.

Residents in Amberleigh Station and other nearby neighborhoods have cited concerns about how close the new industrial park would be to both their own homes and the Manassas National Battlefield Park, a Civil War site that is part of the National Parks system.

“If it’s in an industrial area, go for it, but don’t put them 100 feet from houses,” Steve Pleickhardt, president of the adjacent Amberleigh Station neighborhood association, told Virginia Business magazine. 

The Devlin project was only initially approved following a tense 10-hour public hearing held in September 2022, then nearly immediately tabled when opponents became increasingly vocal about their fears. 

Others, however, have positive views regarding data center growth. Christina Winn, Prince William County executive director of economic development, says that data centers generate significant tax revenue and provide numerous jobs, both during the construction phase and after they are built. Virginia Business reported that tax revenue from data centers increased to $79.8 million in 2022 from a mere $5.9 million in 2013.

Winn told the publication, “It really comes down to that commercial tax base. That benefits our schools, libraries, and parks.”

It is clear that the controversy surrounding the continuing construction of data centers in Virginia is not likely to end anytime soon, despite the tax benefits that local communities experience as a result of their presence. 

Currently, Amazon Web Services (AWS), Microsoft Azure, Google Cloud, Facebook (Meta Platforms), and Equinix are just a few of the major companies that house their data centers in Northern Virginia.

What do you think? Do you support or oppose more data center parks?

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Frank Jenkins Jr

Frank Jenkins Jr

Frank Jenkins Jr. is the managing partner of Adams, Jenkins & Cheatham, a CPA practice based in Midlothian, VA. Frank specializes in Consulting services, tax planning, accounting, audit & assurances. "I genuinely care about our clients because I have a personal connection with them. This job requires me to multi-task and work under tight deadlines. I get great professional satisfaction from balancing firm and client commitments while building a strong team here at AJC."

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