planning commissioners struggle with data center dilemma
Loudoun County has established itself as the premier data center location in the country. A combination of fortunate location, internet history and shrewd marketing has led to an explosion of data centers in the county – more than 70 at last count, with construction continuing furiously as data center companies gobble up available land.
The draft Loudoun 2040 Comprehensive Plan (as it stands now) would expand data center zoning into several areas where it is not permitted today. On this map, the blue areas permit data centers today; the black cross-hatched areas would permit additional data centers under the new plan.
Of note, the area adjacent to the controversial True North data center on Goose Creek in the Transition Policy Area would be expanded all the way west to Evergreen Mills Rd, adjacent to the Red Cedar community, sure to encounter stiff resistance. Also of note is that current zoning already allows data centers along Rt 50 all the way to the edge of The Meadows community and very close to other residential areas.
At the January 10 Planning Commission worksession, commissioners wrestled with the impact as they sought to steer this phenomenon in the best direction for the county’s future. There is no question that data centers contribute positively to the current financial health of the county. Yet their enormous bidding power drives up the price of Loudoun County property for other businesses, especially the small service-oriented business that would compete for space in light industrial areas. Loudoun data center land can bring over $1M per acre. Buddy Rizer, the county’s Executive Director for Business Development told the Commission that data centers are so hot right now that developers are hardly considering any other uses for land which permits their construction.
200 Data Centers and No Plumbers?
In 2014, Loudoun’s Board of Supervisors approved the Data Center Zoning Ordinance, which added data centers as a permitted use to districts zoned as commercial light industry or planned development of an office park, research and development park, industrial park or general industry. Data centers competed for space with other uses, and won. If Rizer’s predictions are correct, the kinds of businesses that use these spaces –building contractors, HVAC repair, electricians – and offices – will see even more of a cost squeeze from data center competition. If we can’t manage this, we are on our way to a sea of soulless server bunkers and no plumbers. Needless to say, this also drives up the price of land for schools and other public spaces as well, spills over into residential land prices, and changes the landscape.
Consider the recent Arcola Center decision. A previously planned walkable mixed-used office / residential / shopping area now has a huge fenced data center planned right in the middle, completely changing the nature of the development. What seems a financially sound decision for the county in the near term is a disheartening example of development to come. Although data center use is a windfall for those who own the property, most homeowners nearby don’t want them in their neighborhoods, objecting to the visual impact, potential noise, and power lines.
So our planning commissioners are rightly struggling with what to recommend to the Board of Supervisors. There is clearly concern that we could be riding this tiger too far; that we will become too dependent on a single industry and pay the price later on when the market turns; and that land prices for offices and small service businesses will drive up their costs to unaffordability. Yet there is the attraction of more county revenue and the desire to remain competitive for these businesses.
UPDATE: THE PLANNING COMMISSION DID NOT RESTRICT DATA CENTER GROWTH IN ANY WAY. THE DRAFT PLAN SUBMITTED TO THE BOARD OF SUPERVISORS SIGNIFICANTLY EXPANDS THE LAND ON WHICH DATA CENTERS COULD BE BUILT, BASICALLY MATCHING THE MAP ABOVE.
The Transition Area Alliance opposes the further extension of data center zoning in the Suburban, Transition, or Rural Policy Areas.
A single data center in Ashburn, VA
Note: The plan as reported in these messages is a draft, not yet voted on. The Planning Commission will be finalizing its draft plan on Saturday 2/23 at a working session and is no longer taking public comments on the plan.
Further public comment should be directed to the Board of Supervisors.
This message is the third in a series of articles examining the proposed 2040 Comprehensive Plan as it applies to the Transition Policy Area. You can stay informed on this topic by following the Facebook Group Loudoun Residents for Reasonable Growth, and by signing up for the Transition Area Alliance mailing list here.
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