Loudoun County, Virginia, proudly claims to have nearly 199 data centers. This has turned it into a critical center for digital storage and processing, inspiring the name “Data Center Alley.” Loudoun County became notorious as perhaps the wealthiest county in America. It has seen incredible expansion in the data center industry, with these facilities now occupying nearly 110,000 acres, or almost 3% of the county’s total land area. This expansion has economic opportunity and complexity for the community.
The data center industry is a key economic driver for the immediate area and the local region. It generates over 74,000 jobs across Virginia and generates over $5.5 billion in annual labor income. This massive financial windfall highlights the new and continued relevance of data centers to Virginia’s broader economic picture. In Loudoun County, these facilities account for a shocking 40% of the county’s budget. This serves to underscore their essential role within local government and public service.
About 10-years ago, Loudoun County’s leaders recognized that a robust digital infrastructure was the future. This began the county’s evolution into a data center boomtown. While it was no doubt a good fortune, this foresight became the county’s calling card for being a leader in data storage and processing. It even surpassed China in the total number of facilities! There are now 1,100 data centers on the U.S. commercial market, with 400 more under construction. This dramatic increase reflects an unprecedented worldwide demand for space in which to process data.
The massive and speedy expansion of data centers has not been without its dark sides. In the absence of robust outreach and engagement, residents testify about noise pollution, with these facilities operating at very high decibel levels. A typical new data center takes up at least 100,000 square feet, frequently transforming communities’ neighborhoods into dense industrial corridors. This rapid expansion and the increased presence of these hazardous facilities have resulted in an ongoing battle to defend community needs against a growing industrial agenda.
In addition, data centers’ environmental record is alarming. In the last five years, wholesale electricity costs have increased by up to 267% in the states surrounding these facilities. This dramatic change is largely due to their very high energy consumption. This has prompted discussions about sustainability and the long-term viability of such expansive operations in a region renowned for its natural beauty.
Given these headwinds, state preemption has been a hotly debated issue at the state legislature. Opponents pointed to action earlier this year when Virginia’s new Governor Glenn Youngkin vetoed legislation that would have made it easier to regulate data centers. This decision has sparked a passionate discussion among policymakers and advocates across the country. They’re leading the conversation about how to balance the growth of this critical industry with the needs of their communities.
Loudoun County is becoming a data center behemoth. Yet at the same time, it needs to continue to build and foster economic prosperity while making sure its residents maintain an exceptional quality of life. The data center industry is totemic of the technological advancement and high-tempo innovation that produces broad job creation across industries. That’s why it is sometimes referred to as the “backbone of the 21st-century economy.” Yet, as the county forges ahead, it must address concerns related to noise pollution, energy consumption, and community integration.
And in response, local leaders have started finding solutions that might minimize these painful effects while allowing for needed economic development to continue. They convene and collaborate with residents, stakeholders, and partners in the area. Through their process, they aim to create a shared framework that both encourages the growth of data centers while making sure the community flourishes.