Key Developments
Northern Virginia Data Centre Growth Shift Southward Amid Power Constraints and Rising Tax Revenue
Northern Virginia continues to dominate the global data center market, but soaring demand has spotlighted power constraints, prompting renewed focus on long-term utility planning. Dominion Energy reported over 40GW of contracted data center power as of December 2024—nearly double the figure from just five months earlier. To meet this demand, Dominion and PJM Interconnection are investing in major transmission infrastructure upgrades, expected to come online from 2026.
The region's growth is expanding southward. In Q1 2025, Stack Infrastructure announced a 500-acre, 1.1GW campus in Stafford and a 144MW project in Ashburn. AWS and others are building in counties beyond traditional hubs, signaling a shift toward a broader geographic footprint.
Prince William County is also seeing financial benefits. Its data center tax revenue surged 68% in 2024 to $280.2 million, driven by a hike in the computer and peripherals tax rate. The county plans further increases in 2026, as data centers continue to bolster regional economies and redefine development priorities.
1Q 2025 Northern Virginia Development Activity:
- AWS is developing data center projects across counties between Northern Virginia and Richmond, including new campuses in Spotsylvania and Caroline
- Stack is pursuing two major campuses—one in Fredericksburg (up to 12 data centers on 250 acres) and another in Stafford (1.1GW across 500 acres), both dependent on utilities and entitlements
- Blackstone bought the 774MW Potomac Energy Center in Loudoun County for ~$1B, emphasizing power demand near data center hubs