The Albemarle County Board of Supervisors attended a work session on August 6, 2025 to discuss a proposed data center ordinance drafted by the Community Development Department. The lengthy discussion can be viewed online, section 1:42:00 - 3:50:40 in the video. In summary, this meeting generated a request by the board for staff to craft more options and alternatives to what was presented.
There will be a free community meeting hosted by The Piedmont Environmental Council at The Center on Tuesday, September 16 from 6-8, sign up in advance. On October 14, 6 pm the Planning Commission of Albemarle County will hold a public meeting to present the Data Center Ordinance. You may attend the meeting at Lane stadium or watch it on Zoom online. Public comments may be submitted by email, you may ask questions in person, via zoom, or by phone.
Staff began the work session with an overview of the new Tier 1 and Tier 2 zoning overlays which by definition are "by right" pre-approved without community discourse. Tier 1 is up to 125,000 square feet and Tier 2 would be up to 500,000 square feet. Current zoning allows up to 40,000 square feet in the industrial or commercial district with special use permit required if over that size. Building size comparison examples were presented: 40K - Whole Foods, 125K - Walmart / Costco, 500K - State Farm complex / Seminole Place plaza (largest complexes in county). Four specific Tier locations were identified on maps within existing planned development areas. PDAs currently encompass 5% of the entire county. No ground water use or evaporative cooling systems would be permitted. Tax revenue would be generated from real estate (land / buildings) and tangible personal property (equipment / racks). It costs less to collect tax dollars from data centers than residential or commercial. Revenue dollars from data centers diversify the tax base. Staff has seen significant public interest in this proposal.
The following summarizes board members (BOS) comments and Q&A with staff:
BOS Mike Pruitt, Scottsville is deeply skeptical and uneasy with "by right" (rubber stamp / pre-approval) for data centers. Historically he has been supportive of lower "by right" building sizes believing existing code of 40,000 square feet is too permissive and would like lower square foot designations for the proposed Tiers. Energy grid costs are being paid for by rate payers (his constituents - citizens and businesses). Suggested that future quantum computing technology developments will shrink the size of equipment and if centers are phased out, the rural centers away from NOVA would go first. Agrees that data centers can be a real revenue boon but are a destructive land use. The regulations proposed by staff are acceptable as but is concerned about 2 Tier locations as they are incompatible uses. The North Fork Tier designation is problematic because of the recent approval of housing in that area and the Pantops State Farm complex because it is near natural habitat trails and residential. Not supportive at all of any of the "by right" Tiers due to project scale. Staff confirmed no need for Tier overlays if "by right" text is removed.
BOS Ned Gallaway, Rio questioned water usage. Staff reported that those managing water say data centers consume equal to or less compared to typical like zoned buildings and that air/hybrid cooled can use even less. Staff discussed depreciating tangible tax dollars bring in more revenue in the first years of equipment purchase. He compared Tier 1 to the new Home Depot in size. Doesn't see that a data center is any different in equipment taxing than other businesses (referring to Martha Jefferson Hospital and Home Depot). More expensive for a project to apply for Special Use Permit vs defining "by right" Tiers. Believes data centers a way to generate taxes through diversification. Viability of data centers should not be a land use policy factor. Speaks of a limit to the size and does not see a 1,000,000 square feet facility fitting in our county. He sees the North Fork Tier designation as being divided into a southern section for residential development and a northern section industrial, appropriate for a data center which would not be any different than an office building project. He doesn't believe a data center replacing the vacant State Farm 400,000 square feet complex would be a detriment to natural areas. If thousands of employees were working there, the same impact would be felt from a 500,000 square feet data center and actually it would reduce the people impact as data centers don't require as many employees and would be a viable business not adding to the transportation woes. Would not have to raise the tax rate if we had data centers. Data Centers are within bounds of what we already allow for economic activity. Supports Tiers and where they have been identified to be located in the county.
BOS Bea Kirtley, Rivanna questioned what is the average utility bill increase from data centers in communities that have them and staff responded there is no data because the state does not publish it. Staff confirmed there is no direct county investment, just the normal site plan process such as storm water and utility improvements. Citizens are very unhappy with recent tax increase but they would be happy that the proposal does not permit the use of ground water that could impact the water table. Staff explained current industrial zoning adjacent to rural (includes residential) has a 50 feet setback and the Tier definitions require 200 feet. She would like it changed to 500 feet. Staff clarified that natural gas or tier 4 generator (diesel) is permitted. She questioned the proposed State Farm complex Tier as it is too close to residential. Staff has surveyed 19 data center properties outside of Albemarle and have distilled best practices incorporating lessons learned. She is requesting 3 Tiers be proposed, 125,000 / 250,000 / 500,000 square feet.
BOS Ann Mallek, White Hall precautionary approach because new to our county and we need to be very detailed oriented when writing the ordinance as little regulation exists. Loudon County is warning that a "by right" approach should never be undertaken. Our county has hilly topography and sound traveling is already an existing issue and this causes uncertainty. Expressed concerns over Dominion Energy power availability to data centers impacting customers. She suggested a mandatory 5 year equipment reassessment in order to guarantee projected tangible tax revenue. She requested water estimates and staff responded there will not be any water estimates and none are available, it is an unknown and a data center might have to consider onsite water storage in order to not cause a surge to the system. Pre-treatment of waste is already being done by other industrial sites. Given the revenue and land cost she believed we should not worry about a special use permit costing the developer more. The larger setbacks will be helpful to protect residential and supports 500 feet. Supports all data centers require a special use permit (no Tiers).
BOS Jim Andrews, Samuel Miller questions the height. Staff reported they tend to be 1-story but taller than normal, multi-story is usually for centers less than 40,000 square feet in size. Staff did not consider any height limitations and is following existing building code which is up to 65'. Taxes are collected on footprint, not gross building total square foot. Staff estimated water use to be substantially less than apartments and hotels. Current noise regulations A weighted but staff is looking into C weighting but it is more difficult to enforce. He is concerned about our hilly community and measuring noise at boundary might not be ideal as could be louder away from site. Staff projects the State Farm 400,000 square foot complex would likely not be reused for a data center but demolished. Staff will look into data center decommissioning similar to the solar requirements. He is hearing pushback from the public about data centers energy use as they far exceed the norm. Not confident the EPA will regulate in the future so electricity would not be cleaner as the county has previously promised. Staff provided that the proposed Tier districts know where power can be obtained and in some cases the infrastructure is already onsite. The State of Virginia has no electricity data as to how much is required to power any of these data centers. He likes the fact that staff has identified areas where the data centers are appropriate but does not like the fact that the public will not have any input "by right". Wants more public vetting to clarify the Tiers and for transparency. Dark sky regulating is something they are looking into for all properties in the county. The I64 / 29 site is very hilly so likely a data center being broken up into multiple buildings. Concerned about residential impact.
BOS Diantha McKeel, Jack Jouett believes a lot of misinformation is in the community. Loudon county has changed their ordinance to special use permit but they had a 50 - 70 data center backlog. Our county has the highest number of land conservation in the state, agriculture and land conservation property does not generate revenue. 49.4 million square feet of data centers in Loudon County (22.9% of tax base), industrial in Albemarle county is 11% but partly this is because residential real estate prices have gone up lowering that number. Staff remarked they are presenting strong performance standards for "by right" and the board asked for a tax strategy and here it is. Requiring a special use permit would lead to an 8 month review and possible conditions put on that permit in the end. Performance standards by defining Tiers bring certainty and a business can better know in advance if they can operate here or not. UVA has 4 data centers and the new proposed site in Fontaine is a 40,000 square feet center (MY NOTE: published data indicates it to actually be 10,000 square feet). The reality is they are already in our community. Supports ordinance and Tier proposals with understanding it is still evolving through staff research. Albemarle county is being proactive and that will prevent some of the worst fears.
Questions and comments may be sent to the entire BOS@albemarle.org or to your individual representative.
~Rebecca
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