Somewhere between land use issues and clean energy initiatives lies a growing battleground for land, power, water, and innovation. Just west of Washington, D.C., Virginia’s Prince William County aims to lay claim to the world’s largest data center corridor. Known as the Digital Gateway project, over 2,000 acres of rural, agricultural, and undeveloped land are proposed to host 37 data centers, spanning a total of 22 to 23 million square feet. In early August, a decision from Prince William County’s Circuit Court Judge voided three rezonings for the proposed project for failure to comply with Virginia’s public hearing notice requirements. The Court has also since denied a stay pending the county’s appeal. Oak Valley HOA v. Prince William County Board of Supervisors, CL24000375-00 (Op. Aug. 7, 2025).
Just south of the proposed Prince William project, another data center project is well underway north of Richmond in Caroline County. This 650-acre project valued at $8.8B is planned on the site of a shuttered indoor/outdoor flea market. While this project seems to have cleared land use hurdles, it is facing water usage concerns as a result of a plan for surface water withdrawal and an interbasin transfer of water from the Rappahannock River to the Mattaponi River via two existing wastewater treatment plants and discharging into the York River Basin. Caroline County Board of Supervisors. (n.d.) Statement on Caroline County Board of Supervisors’ Approval of Economic Development Performance Agreement with CleanArc. Development Updates, Caroline County VA. https://co.caroline.va.us/215/Development-Updates.
Meanwhile, neighboring West Virginia’s legislature has pursued policy efforts aimed at attracting data center developers. “The Power Generation and Consumption Act of 2025” (the “Act”), enacted in July of this year, shifts the governance of data centers away from counties and municipalities to centralized state control, positing that national security and economic growth are fundamental grounds for state control. The Act emphasizes that data center projects, along with their accompanying microgrids, are the prerogative of the state. Furthermore, it asserts that West Virginia is the best candidate state for data center development in the U.S., citing low tax rates, few regulatory restrictions, and abundant energy resources.
Days after Governor Patrick Morrisey signed West Virginia’s Act into law, Virginia’s Governor Glenn Youngkin vetoed identical bipartisan bills that would have required developer applicants to perform sound level assessments on data centers proposed in close proximity to communities. Additionally, the bills granted localities the ability to require that new development applicants assess potential effects on the nearby public resources. S.B. 1449, H.B. 1601, 406th Gen. Assemb., Reg. Sess. (Va. 2025) https://lis.virginia.gov, Vetoed (May 2, 2025). Governor Youngkin asserts that the proposed legislation “limits local discretion and creates unnecessary red tape.” Virginia. Governor. May 2, 2025. Veto Explanation for S.B. 1449, https://lis.virginia.gov/bill-details/20251/SB1449/text/SB1449VG.
In Youngkin’s veto, he also declared Virginia to be the “data center capital of the world,” urging Virginia to not restrict local governments from “developing data centers based on their community’s specific circumstances.” Id. Youngkin’s veto, following the landmark Act passed in West Virginia, suggests an arms race for data center development between the two Virginias.
A 2024 report from Virginia’s Joint Legislative Audit and Review Commission (JLARC) found that data center demand would drive an “immense increase” in Virginia’s energy needs, resulting in a 183% increase in unconstrained demand. JLARC (2024) “Data Centers in Virginia.” Commonwealth of Virginia. https://jlarc.virginia.gov/landing-2024-data-centers-in-virginia.asp. The report found that meeting the Virginia Clean Economy Act (VCEA) requirements while meeting the forecasted energy demand of data centers is not a likely outcome. Virginia would need to add twice the number of new solar facilities added on an annual basis compared to 2024, which comes with its own host of land use challenges, both socially and legislatively. The Commonwealth would also need to increase large natural gas plants at equal or faster rates than the peak build period of 2012 – 2018, and necessary new wind generation would exceed the potential capabilities of all existing and forthcoming offshore wind sites. Id. While states struggle to compete for innovative industries with rewarding economic incentives, land use and resources remain a common hurdle.
Friedel, Jennifer S.. “Land, Power, and Computing.” Southern Ag Today 5(44.5). October 31, 2025. Permalink
