Henrico County is set to acquire another data center development for the White Oak Technology Park in Sandston, as the industry’s rapid expansion in Virginia continues.
The 66-acre project comes from Iron Mountain, a globally-recognized leader in data storage.. The Boston-based company purchased the site in November 2024 for just over $8 million. Now, it’s planning to expand its existing footprint in the commonwealth, although a company spokesperson told VPM News there’s no set timeline for the project’s completion at this time.
The Greater Richmond Partnership, which helps generate economic activity for Richmond-area localities, assisted the county’s Economic Development Authority and Virginia Economic Development Partnership in acquiring the new development.
GRP President and CEO Jennifer Wakefield said in a joint statement this week that Iron Mountain joins a host of high-caliber technology companies who’ve chosen Virginia as a homebase.
“Iron Mountain was approached by the Greater Richmond Partnership nearly two years ago and joins Meta, QTS, Chirisa and Pixel Factory as operations which tap into four high-speed subsea fiber cables that span four continents,” Wakefield said.
Gov. Glenn Youngkin said in the joint statement that the development further strengthens
Virginia’s position as a leader in the data center industry. The commonwealth is home to more than 300 data centers.
“Virginia is the data center capital of the world, and projects like this one in Henrico County are supporting opportunities for continued economic growth,” Youngkin said.
Overall, data centers are estimated to contribute 74,000 jobs, $5.5 billion in labor income, and $9.1 billion in GDP to Virginia’s economy annually, according to a December 2024 study by JLARC, the General Assembly’s research arm.
“The right place for us to achieve these goals”
Henrico is no stranger to new data centers: The county has over a dozen in operation or development and has existing infrastructure and underground, fiber-optic connections that make the county more attractive for new, potential developments.
The county has capitalized on the industry’s growth by establishing its Affordable Housing Trust Fund, a program funded by tax revenue from local data centers, to provide financial opportunities for homebuyers.
Mark Kidd, Iron Mountain’s general manager of data centers, said in the joint statement that the county’s goals also align with the company’s.
“At Iron Mountain, we are committed to delivering exceptional solutions for our customers, developing working environments for our teams that enable them to thrive, and making a positive contribution to the communities where we operate,” Kidd said. “We believe that the Commonwealth of Virginia and specifically Henrico County is the right place for us to achieve these goals.”
Henrico is also expected to further increase its data center footprint with an additional technology campus, dubbed White Oak Technology Park II. QTS Data, a Kansas-based company, is set to build the sprawling center after purchasing a 97-acre property from LL Flooring last year.
Tuckahoe Supervisor Jody Rogish, who is a GRP board member, said in the joint statement that the county is a trailblazer in the industry.
“Henrico County’s data center infrastructure – including the Richmond Network Access Point – proves its immense value with affordability, energy availability and access to the world’s fastest internet connections,” Rogish said.
What’s next for Virginia’s data center industry?
The growth of data centers in Virginia is undeniable and while Henrico continues to be a trailblazing force in the industry, the commonwealth’s lawmakers are reckoning with what the industry’s proliferation means for existing resources.
JLARC analyst Mark Gribbin said during the study’s presentation in December that the industry’s energy demands may be difficult to address.
The General Assembly’s research arm found that data center growth could increase statewide electricity usage by 183% by 2040. However, the commonwealth’s electricity usage would increase by just 15% during that same time period if there were no new energy demand associated with data centers.
The General Assembly is still considering a bill introduced by state Sen. Russet Perry (D–Leesburg) that would direct the State Corporation Commission to research the impact data centers have on electric utility ratepayers. Lawmakers have until this weekend to resolve or table the legislation.
State legislators are also still debating an energy consumption measure introduced by Del. Joshua E. Thomas (D–Prince William). That bill requires high energy use facilities to conduct site assessments examining the facility’s effect on water, agricultural resources, parks, registered historic sites and forestland.
However, state lawmakers have failed to bridge the gap on more than two dozen bills this session that attempted to address data centers’ various resource impacts on the commonwealth.
As the General Assembly looks to adjourn sine die this Saturday, time will tell whether legislators take any additional actions toward reining in Virginia’s fastest-growing industry.
