Data Center Expansion Sparks Local Political Tensions

Homeowner Greg Pirio never envisioned a sprawling data center would rise next door when he purchased his house in northern Virginia over a decade ago.

Now, he finds himself amidst one of approximately 200 data facilities in Loudoun County, a region dubbed the data center capital of the globe.

In a bid to accelerate infrastructure development amid the AI race, federal initiatives have emerged. An executive action signed by President Trump aims to streamline permitting processes for data centers while curtailing state-level regulations.

"There's only going to be one winner here, and that's probably going to be the U.S. or China," Trump remarked during the signing of the order last December, emphasizing the need for a unified approach to avoid bureaucratic delays.

He elaborated, "We have the big investment coming, but if they had to get 50 different approvals from 50 different states, you can forget it... All you need is one hostile actor and you wouldn't be able to do it. So it doesn't make sense."

Pirio likens the current data center boom to a second Industrial Revolution, yet he expresses concern over its repercussions for local residents. The incessant noise from operations, air pollution from an on-site power plant, and escalating electricity costs weigh heavily on his mind.

Long-term implications for property values also trouble him. "Like so many other people in the country, you know, that's where our savings are, where we have our generational wealth," he stated.

This issue resonated with voters during John McAuliff's campaign for the state House last fall, where he successfully flipped a Republican seat to Democratic control in parts of Fauquier and Loudoun counties.

"Folks are waking up," McAuliff noted. "If you have these in your community, you're starting to realize the impacts."

While canvassing neighborhoods, he identified this as a primary concern among constituents, making it a focal point in his campaign messaging.

Now serving as a delegate, McAuliff is advocating for legislation that ensures residents are not burdened with rising electricity costs due to data center operations.

"I think it's an important industry. I'm not saying they should all get out and leave, but if you're going to come into a community and you're going to take resources out of that community, then you have to be willing to give back," he asserted.

Additionally, he has introduced proposals addressing zoning and environmental issues related to backup generators at these facilities.

Dan Diorio from the Data Center Coalition emphasizes the industry's commitment to being a responsible community partner. "The data center industry is committed to covering its costs and working to mitigate community impacts," he stated.

Diorio highlights the significant benefits of job creation and local revenue generation, noting that Loudoun County relies heavily on this sector for nearly half of its property tax income.

He further argues that demand for data centers is only set to increase. "Digital infrastructure is the backbone of the 21st century economy. Increasingly, it is an essential part of ensuring the United States' global economic competitiveness," he explained. "It's a national security imperative. This is all of our data. We want it stored here."

According to the U.S. Census Bureau, spending on data center construction surged over 55% from 2023 to 2024, with Louisiana, Virginia, Mississippi, Texas, and Arizona leading in expenditures.

Despite these economic benefits, residents living near these developments are calling for greater oversight. "Let's slow things down so that we can do it in a way that's gonna help communities, not damage them," Pirio urged.