How Zoning Policies Shape Data Center Development in Northern Virginia

Real Estate, Land Use & Construction Law

How Zoning Policies Shape Data Center Development in Northern Virginia

Nov 7, 2024 | Real Estate, Land Use & Construction Law

Northern Virginia is a major hub for data centers, housing one of the world’s densest concentrations of data facilities. This rapid expansion has fueled economic growth but also raised significant zoning and land use challenges as communities balance environmental impacts with economic incentives. Recently, counties like Fairfax and Loudoun have enacted new zoning regulations to control data center growth, seeking a balance between technological advancement and community preservation. This blog explores these zoning challenges, recent regulations, and how sustainable technology could help data centers align with community standards.

Northern Virginia’s Emergence as a Data Center Hub

Northern Virginia’s data center boom stems from its strategic location and supportive regulatory policies. The proximity to Washington, D.C., and established fiber-optic infrastructure make it ideal. Additionally, local governments offer attractive tax incentives, drawing substantial investments from tech giants like Amazon and Microsoft. Although the data center industry significantly boosts the regional economy via property taxes and job creation, the growth is also placing a strain on local infrastructure, with escalating energy and water demands, raising concerns among residents and policymakers​.

Zoning Challenges and Community Impact

As data centers proliferate, communities in Northern Virginia encounter unique challenges related to zoning and land use. High energy and water consumption, noise, and the visual impact of large data facilities have drawn the attention of both residents and local governments. Loudoun County’s new guidelines emphasize on-site power generation, including hydrogen fuel cells and battery storage systems, to mitigate the strain on the local grid and reduce emissions​.

Fairfax County has recently introduced zoning regulations addressing setbacks from residential areas, noise impact studies, and building aesthetics. These regulations aim to reduce noise and visual disruptions, with specific setback requirements to ensure data centers remain at a safe distance from residential neighborhoods. These restrictions represent a broader community-driven response to unregulated development, with local groups, especially in areas bordering residential and historic sites, advocating for these measures to protect environmental quality and neighborhood aesthetics.

Technological Innovations to Support Zoning and Sustainability

As zoning requirements become more stringent, data centers are adopting innovative technologies to meet both operational and regulatory standards. One prominent example is Active Infrastructure’s proposed hydrogen-powered data center in Leesburg. This facility, known as the Spring Valley Technology Park, is planned to run on hydrogen fuel cells and battery storage, offering a low-emission power solution aligned with Loudoun County’s emphasis on sustainable energy​.

Additionally, Amazon and Dominion Energy’s partnership to develop small modular nuclear reactors (SMRs) near Lake Anna aims to address the increasing power demands of data centers sustainably. SMRs offer a smaller physical footprint and shorter construction timelines compared to traditional reactors, making them ideal for providing stable, low-carbon power for data center operations in Virginia​.

Another notable advancement is reconductoring existing power lines with composite-core conductors, which could double the grid’s capacity by allowing for higher power transmission within the same physical infrastructure. This approach could potentially alleviate power constraints without the need for new lines, thus supporting the region’s growing data center demands more sustainably and efficiently.

Vertical Expansion: The New Data Center Design Trend

In response to land constraints and rising construction costs, data centers are beginning to adopt multi-story designs in urban and suburban settings. Traditionally sprawling facilities are increasingly being built upwards, as seen in new projects by companies like Equinix, which has high-rise data centers in dense urban areas worldwide. These vertically oriented data centers not only optimize limited land use but also allow operators to maintain closer proximity to the cities they serve, enhancing data delivery speeds and minimizing latency. However, building vertically introduces additional costs, such as increased materials for structural support and challenges with cooling systems, which zoning policies will likely need to address as this trend grows.

Future Trajectories and Policy Implications

The trajectory of data center zoning in Northern Virginia appears poised for tighter regulations with a focus on environmental sustainability and community well-being. As Fairfax and Loudoun counties set the pace with updated zoning requirements, other counties in Virginia may adopt similar policies. Future regulations might incorporate additional environmental considerations, such as energy usage caps and stricter water usage limitations.

The success of alternative energy models, such as hydrogen fuel cells, SMRs, and reconductoring, could heavily influence future zoning policies. If these technologies prove cost-effective, they could serve as benchmarks, potentially leading to new zoning incentives for sustainable data centers or even green certifications. These shifts will be essential for aligning data center growth with the community’s environmental and infrastructure needs while maintaining Northern Virginia’s standing as a global data center leader.

Conclusion

The rapid growth of data centers in Northern Virginia offers both economic opportunities and zoning challenges. Balancing technological advancement with community preservation requires thoughtful zoning policies that address environmental impacts and align with community concerns. As counties like Fairfax and Loudoun continue to update their zoning regulations, the future of data center development will depend heavily on sustainable innovations and policy adaptations. By fostering a dialogue between developers, policymakers, and residents, Northern Virginia can continue to lead as a data center hub, but with a renewed focus on sustainability and community well-being.

If you have questions about zoning concerns in your area, please contact Andrew Gregg at (703) 284-7254 or agregg@beankinney.com.

This article is for informational purposes only and does not contain or convey legal advice. Consult a lawyer. Any views or opinions expressed herein are those of the authors and are not necessarily the views of any client.

LinkedIn

Follow us on LinkedIn to view the latest blogs from our team.

About – Business Insights

Our business blog focuses on issues affecting Virginia, D.C. and Maryland business owners as well as those in other jurisdictions throughout the country. We provide timely insight and commentary on federal and state rules and how they affect you. If you are interested in having us cover a specific topic, please let us know.

About – Employment Law

As employment law constantly changes, the attorneys at Bean, Kinney & Korman stay up to date on the law as it develops. Our blog topics focus on those changes and what you need to know about them, ranging from severance agreements and the FLSA to social media in the workplace and recent court decisions. If you are interested in having us cover a specific topic, please let us know.

About- Real Estate

This blog focuses on real estate, land use and construction-related topics affecting Virginia and the Washington, D.C. metro area. With topics ranging from contract drafting and negotiation to local and regional land use project updates, the attorneys at Bean, Kinney & Korman provide timely insight and commentary on the issues affecting owners, builders, developers, contractors, subcontractors and other players in the industry. If you are interested in having us cover a specific topic, please let us know.