NEWS: James City County Enters Data Center Debate
Planning Commission to consider new rules, including analysis of economic benefit
As data center development continues to expand across Virginia, James City County is among several localities reassessing regulations in order to control the spread. The Couty’s Planning Commission will consider changes that would restrict where data centers can be built and impose new conditions on their approval. The meeting will take place on Wednesday, July 2, 2025 at 6:00 p.m. in the Building F Board Room at 101 Mounts Bay Road. If the Planning Commission votes to recommend the new regulations, the proposed changes will move to the County’s Board of Supervisors for final consideration at a later date.
The changes would introduce a formal definition of "data center" and remove their current status as a “by-right” use in several industrial and mixed-use zones. If approved, developers would need to obtain a special use permit to construct data centers in the M-2 (General Industrial) and EO (Economic Opportunity) districts.
Focus on economic return
Projects would also be subject to additional standards, including a new requirement that data centers demonstrate economic returns that exceed the returns from alternate land uses. Though only one of several conditions that could be placed on data center development, the economic benefit requirement could prove to be central to future decisions.
County officials have described the condition as a response to concerns that large infrastructure projects can place long-term pressure on local resources without delivering broad-based community benefits. The goal of the economic beneift analysis is to ensure that data centers provide more than just basic tax value, especially given their relatively low job counts and high utility demands.
The new approval process would likely require applicants to provide documentation—such as projected tax revenues, capital investment, and job creation estimates—to show that a proposed data center would offer greater financial benefit to the county than other potential land uses. County staff would then compare these projections to what similar sites might generate through industrial, commercial, or mixed-use development.
Environmental and quality of life concerns
Though data centers have been identified as having relatively low public service needs like roads and emergency services, they often raise a range of infrastructure and environmental concerns.
One major issue is energy consumption: data centers require large amounts of electricity to power servers and cooling systems, placing pressure on local utility infrastructure and contributing to statewide increases in energy demand. Water usage is another concern, particularly for facilities that use evaporative cooling systems, which can draw millions of gallons annually.
Additionally, the constant operation of cooling systems, fans, and backup generators can produce continuous low-frequency noise, which nearby residents often describe as a persistent hum or drone. Though typically within legal noise limits, this type of sound has been reported to cause sleep disruption and other quality-of-life issues.
Finally, visual impacts are a frequent concern. Data centers are often large, box-like buildings with minimal architectural detailing. They can exceed standard height limits, require tall fencing and bright nighttime lighting, and may be out of scale with surrounding land uses—especially in areas near residential neighborhoods or natural landscapes. These combined effects have made data centers a growing point of contention in many local zoning debates.
Regional context and industry growth
The proposed changes follow similar actions taken by nearby localities. York County recently adopted new regulations requiring special permits for data centers and added zoning standards for noise, fire safety, and site design. Other Virginia counties, including Fairfax, Loudoun, Prince William, and Albemarle, have adopted comparable restrictions in response to data center expansion.
Earlier this month, the Chesapeake City Council unanimously rejected a proposed 350,000-square-foot data center. As reported by Ryan Murphy for WHRO Public Media, the council denied the rezoning despite prior support from city staff and earlier decisions that appeared to clear the way for development. Nearly 50 residents spoke in opposition, citing constant noise, high energy and water consumption, and fears of overdevelopment. Chesapeake’s Planning Commission had also recommended denial, and the council declined the developer’s request to delay the vote.
Virginia remains a major hub for data centers, particularly in Northern Virginia, which holds 13% of global capacity, according to a 2024 report by the State’s Joint Legislative Audit and Review Commission (JLARC). That report documented widespread impacts from the industry, including increased power demand, land conversion, and noise concerns, while also acknowledging the state’s reliance on tax revenue and capital investment from these facilities.
Proposed conditions and Committee feedback
In James City County, data centers are currently allowed by right in the M-1, M-2, MU, and EO districts. The new ordinance would revoke those permissions and require a case-by-case approval process through the special use permit system.
Along with the economic benefit threshold, other proposed conditions include:
A cap of 80,000 square feet per building
Minimum setback distances from residential areas
Buffering and architectural standards
Letters from utility providers confirming service availability
Submission of an emergency management plan
A decommissioning agreement to address future site closure
The county’s Policy Committee, which reviewed the ordinance in June, voted 4–1 to recommend its approval. During that process, members raised concerns about the long-term infrastructure burden of data centers, particularly their electricity requirements and whether they serve local needs. Some committee members also discussed the potential advantages of smaller-scale “edge computing” models, which may have fewer impacts and more localized uses.
AI was used to help produce this post.