(Chatham) — Pittsylvania County’s first data center would be the most expensive economic development project in local history. But it’s still a few votes away from happening.
The Pittsylvania County Planning Commission Tuesday recommended approval for a rezoning to create the 58 East Data Campus on over 900 acres on the south side of Route 58, just east of the Danville city limits.
Developer Tom Gallagher says this would be a first for the county. “These are basically warehouses that house computers, servers and other equipment that is used to store and send data, “Gallagher told the Planning Commission. “They provide large-scale data storage for businesses, military and governments.”
Unlike other major economic projects, Gallagher says data centers generally have more curb appeal. In short, he says they generate a lot of tax revenue without a lot of fuss. “This project presents a unique mix of high tax revenues while having a low impact on county-provided services,” Gallagher said. “Data center equipment is taxed at a higher rate than real estate or other personal property. That’s why these things are so attractive.”
According to Gallagher, the Commonwealth of Virginia received over three-and-a-half billion dollars in revenue between 2017 and 2021 from data centers.
And Gallagher notes the land is ideally suited for a data center. “Its a perfect location, given the proximity to infrastructure and the other uses in the immediate vicinity. The land is on the same side of 58 east as the Airside Industrial Park and Danville Regional Airport.
Pittsylvania County Industrial Development Authority Chairman Doctor Joey Faucette says the 58 East Data Campus is a $4-to-5 billion investment that will create up to 500 high-wage jobs. Once fully built out, the data center will generate between 120-and-200 million dollars a year in direct tax revenue for the county. “Thus answering the need for a high-yield, low-impact solution to help alleviate the tax burden of citizens with additional tax revenues equivalent to 10-12 Caesars Casinos like the one in Danville each year,” Faucette told the Planners.
Developers plan to work with local fire and rescue agencies to offer them training on handling emergency situations specific to data centers. The project will also require a traffic study from the Virginia Department of Transportation.
A handful of people in the nearby Mountain Hill community opposed the data center. Anne Smith lives on Cedar Road. She says the location is far from ideal. “This should be put in an industrial park. This was designed for that,” Smith told the Planning Commission. “Not in the middle of an all-American neighborhood with busses running and children outside playing.”
Other residents reminded the Commission of the recent issues they’ve had with fires at the First Piedmont Landfill. But Justin Brown, who represents the Dan River District on the Planning Commission, says that’s comparing apples to oranges. “This is not a landfill. They’ve put in proffers to prevent that,” Brown said. “No one is trying to pull the wool over anyone’s eyes, no one’s trying to do anything corrupt.”
Gretna-Callands Planner Janet Mease says the potential tax benefits to the county are staggering. “So many people feel like we were left out when the casino came to Danville. This is our casino. It’s our time to grow,” Mease said.
The Board of Supervisors will take up the rezoning next month. Developers will eventually have to get a Special Use Permit from the Board of Zoning Appeals.
