The data center is being built nearly 50 feet from homes in Loudoun County.
Jahi Chikwendu/Washington Post
A backlash against Internet data centers has sparked a wave of legislation across the country to curb the fast-growing industry that uses vast amounts of energy to enable cloud computing and smart technologies.
In Northern Virginia, home to the world's largest concentration of data center buildings, Prince William County last week raised taxes by 72% on data center equipment, many of which are the size of a football field. This was part of a response to complaints that it was too crowded. A facility under construction there.
Neighboring Loudoun County, home to most of Northern Virginia's data centers, will move buildings away from residential and some commercial roads, including by subjecting all data center projects to county commission review instead of allowing them. moving in the direction. A “natural” development in a particular field.
It's not just Northern Virginia. In Georgia, the state Legislature recently passed a bill that would give him a two-year moratorium on tax incentives allocated to the data center industry. Additionally, in Arizona, Illinois, and Arkansas, authorities have passed laws that either suspend data center development or further restrict where data centers can be built.
“We want this to be a value proposition,” Prince William County Commission Chair Deshundra Jefferson (D) said of the commission's vote to raise the tax rate on computers and peripherals to $3.70 per $100 of assessed value. “That equates to $3.70 per $100 of valuation,” he said. Prices in nearby areas.
While residents in the west end of the county are upset about the noise from some data centers and the power lines needed to provide power, Jefferson said, “We don't feel like we're getting our money's worth.'' ” he said.
A stricter approach to an industry that is a major source of tax revenue for counties and cities, where individual data centers consume 50 times more power than a typical office building, could have an impact on the national power grid. It's coming out in the middle of being exposed. According to the Department of Energy.
In the portion of the grid that covers the mid-Atlantic coast and parts of the Midwest, a projected gap in available energy due to industry growth and an expected wave of fossil fuel power plant closures has pushed grid operators to The following requests were made to several coal-fired power plants: It will continue to operate as part of a $5.2 billion plan to leave hundreds of miles of new power lines in Virginia and three neighboring states.
These impacts have placed the data center industry under increased scrutiny, even as many communities continue to look to data center companies as a source of economic development.
After numerous bills have been introduced over the past two years seeking to further regulate data centers, the Virginia General Assembly recently launched an investigation into both the positive and negative impacts on the industry.
In Georgia, a bill suspending tax incentives (which Republican Gov. Brian Kemp (R) has not yet signed amid veto requests from the industry) would allow the state's largest utility company to receive significant tax cuts. A similar investigation will probably be launched in response to the statement that it will be necessary. Increase energy capacity to meet electricity demand.
“These data centers continue to consume a disproportionate amount of our state's energy,” Georgia House Speaker John Burns (R) said when the bill was introduced in February. “We need to make sure we have that balance and the resources that are available.”
Kemp's office said Friday it was still reviewing the bill.
Josh Levi, president of the Data Center Coalition industry group, said the facility has more positive benefits than negative impacts.
“Data is clearly the lifeblood of our economy,” Levi said. “Everything we do in our personal and professional lives relies heavily on the digital infrastructure that facilities deploy.”
Levi said Georgia's moratorium is an “alarming and alarming signal” for an industry that has created thousands of jobs in the state, and that data center companies are trying to minimize the impact on the power grid. He stated that he has been working to reduce greenhouse gas emissions.
He said companies are investing heavily in carbon-free energy projects such as solar and wind power that directly power their facilities.
However, many of these projects are not yet operational due to permitting and funding issues. This is in part due to significant delays in connecting enough green energy to the grid to address the projected power gap.
“When you look at the power grid, there are some real systemic challenges that people are facing,” Levi said. “From an industry perspective, we are currently having a number of discussions with utilities, grid operators, regulators and policy makers across the country to discuss these challenges.”
Meanwhile, dissatisfaction with the industry continues.
Residents of Chandler, Ariz., have long complained about noise from extra power lines and cooling equipment needed to service the city's five data center complexes, said Kevin, the city's planning administrator. Mayo said. The city recently tightened its requirements for data centers, including limiting future development to designated planned development areas away from residential areas.
Data center companies that want to build in Chandler also need to explain how their presence will benefit the community.
That's difficult in a city that is drought-prone and also wary of industry's use of water to cool computer servers and other equipment. Mayo said Chandler will receive little tax revenue from data center companies because of recent tax cuts by the state.
“They don't really bring in jobs, they reduce tax levels to a level that doesn't actually provide a financial benefit to the city, and they require a tremendous amount of electricity,” Mayo said. “We have a hard time telling the story that this is a collective good.”
But the industry is now expanding to other parts of the country, and some officials say stricter laws could simply lure out data center companies and deprive local communities of economic benefits. ing.
In Prince William County, Supervisor Victor S. Angley (D-N.A.), the only board member to vote against the data center tax hike, said it would have contributed $100 million to the county's coffers. He warned that it was sending an unpredictable signal to the industry. There are about 31 data centers there.
Mr Angley said Prince William had already increased tax rates by about 20% last year and that future increases would be phased in.
“What we're dealing with is our word. When we say we're going to do something, believe it and stick to it,” he said.
Robert Sweeney, president of the Prince William Chamber of Commerce, said the higher tax rate also applies to about 5,000 small businesses in Prince William that use computer equipment in their operations.
“They could have waited to raise taxes next year,” Sweeney said of the county commission. “Rather, they just put out policies in rapid succession.” They argued it was a political move to appease data center opponents in contributing counties.
As a candidate, Mr. Jefferson expressed anger over the recent approval of a plan to build a “Digital Gateway” complex in the county that would include up to 34 data centers, and during the campaign he announced his intention to raise taxes. He said it was shown.
He said the tax increase will generate nearly $60 million in additional tax revenue, allowing the county to increase funding for schools and parks, and the next budget will slightly increase the homeowner tax rate to $0.92 per $100 of assessed value. It is said that it can be lowered.
For now, this move does not prevent future investments. On Friday, Google announced plans to spend $1 billion to expand data centers in Prince William and Loudoun counties. Compass Data Centers, one of two technology companies building the digital gateway, said early last week that the tax increase had no impact on its plans.
“I don't think this will slow down the industry,” Jefferson said. “We want to put the data center in Prince William County. But we have to make it worthwhile.”
Loudoun County has seen some stage of data center construction every day for the past 14 years, said Supervisor Michael R. Turner (D-Sterling), who has led efforts to curb the industry's growth.
Loudoun currently has about 180 data centers and consumes 3,200 megawatts of electricity, enough to power 2.5 million homes, three times more than in 2019, Turner said. He says he will. By 2032, that demand is expected to increase to he 7,000 MW.
The new policy will allow the county to balance the fact that the industry generates $600 million in annual tax revenue, which helps protect Loudoun from the pandemic, with complaints about the industry's presence, especially near homes and schools. He said he was trying to get it. The downturn in the commercial real estate market is also affecting other parts of the Washington, D.C., area.
“This is a growing industry,” Turner said of the industry's continued development as digital technology continues to evolve, requiring more data centers and, in turn, more power and transmission lines to keep those facilities running. “It's a fast-moving train and a rapidly changing environment.” “All we know is that these trends are not going to change anytime soon.”