Local leaders thinking about allowing data centers need to ask questions.
What will the center do? How much water and power will it need, especially during the hot months? How will they be monitored when they’re up and running?
João Ferreira, acting director of the Center for Economic and Policy Studies at the University of Virginia’s Weldon Cooper Center, talked about approaches on Wednesday with Virginia Beach planning commissioners.
The city is among those grappling with how to regulate centers, though it has a temporary moratorium on them in place.
“It has to do with the campus that is being proposed and the behavior of the data center when it comes to a moment where they want to locate somewhere,” Ferreira said. “So for me, it’s always about transparency before the local approval.”
Guidelines are being discussed in Hampton Roads communities as they are realizing that land-use rules can be vague enough to allow the controversial facilities.
In May, Virginia Beach Planning Commission Chair John Coston warned that data centers are undefined in zoning and could be developed by-right in industrial districts.
After vowing large centers weren’t welcome, City Council in August paused considering applications for 12 months or until the buildings are addressed in zoning rules. That could happen through a conditional use permit process.
City officials have said no new applications have come in and existing data center businesses are related to the subsea cable landing industry, which the city wants to safeguard. They want to avoid large-scale centers that are controversial for their size and using excessive amounts of energy and water.
Ferreira spoke about ongoing research and Weldon Cooper’s work for the state’s Joint Legislative Audit & Review Commission. His overview described the rise of the industry in Virginia while noting that big centers are not necessarily eyeing Hampton Roads.
Ferreira distinguished between very large data centers such as hyperscalers and smaller ones that have less of a footprint or demand for water and power. Additionally, he noted that data centers are part of organizations and institutions such as governments, hospitals and universities.
Not everything is meant to power AI.
“As a regional economist, I think one thing that we’ve been very careful of is that we continue to allow those data centers that are kind of very related with our local economy,” he said.
Communities that entertain data center projects should understand the impacts, the revenue they could deliver, infrastructure needs and whether incentives for businesses are worth the returns.
Public reporting about how centers operate helps a community ensure expectations are being met.
“So local policy can connect promises to performance,” he said.
“Questions for a local proposal that I would always do: What exactly will be built? … What will the community provide and receive? And make sure we have this very informed conversation about this. What can the community verify over time?”
Discussion also covered concerns about how data centers developed elsewhere may affect utility rates or resources.
Commissioner Walter Camp said the city could reconsider incentives meant to attract the industry. Commissioner Bryan Plumlee said he wanted a better understanding of potential data center water usage affecting water supplies, noting that Virginia Beach brings in water from Lake Gaston.
“Water would be a major concern from my standpoint,” Commissioner John Cromwell said Friday during an interview.
On Friday, Coston said officials need more information. He hopes there will be more oversight over centers, possibly by the state.
“I’m happy with where we are right now, that we’re not going to build these things in Virginia Beach,” he added, speaking of the temporary moratorium.