Data Center Suburbs: How Virginia’s Data Center Capital Is Stretching South
Virginia is the undisputed Data Center capital of the world. Right now, around 35% of the world’s hyperscale Data Centers are situated in the Mother of States, with the highest concentration nestled in an area known as “Data Center Alley” in Ashburn. This patch of Loudoun County in North Virginia is responsible for handling up to 70% of global internet traffic in its sprawling Data Center buildings, along with neighbouring areas such as Leesburg, Reston, Sterling, Chantilly, Herndon and Manassas.
Yet we are now firmly in the Data Center decade. Demand for Data Center construction is growing – fast – and there is only so much space that Northern Virginia can dedicate to it. It’s estimated that Data Centers already occupy over 8 million square feet of Virginia, with that square footage set to increase to 80 million if all current plans to build are completed in the next few years. For context, that is equal to over 1,380 football fields. Growth cannot be limited to North Virginia without sacrificing the region’s landscapes, trades and communities – not to mention damaging any goodwill towards the industry that comes from local residents.
Space isn’t the only issue facing Virginia’s continued Data Center expansion. Forecasts suggest that Virginia’s Data Centers will require 11,000 megawatts to run by 2035 – a figure almost quadruple to their energy intake in 2022 – and the region is already struggling to support what is currently there. As John Moura, director of reliability assessment and system analysis for NERC, told Reuters: “As these Data Centers get bigger and consume more energy, the grid is not designed to withstand the loss of 1,500MW Data Centers.”
Add pressure to decarbonize – with further space needed for alternative forms of energy like solar, nuclear and wind – and a picture emerges of a data city that’s starting to feel overcrowded.
So, what’s the answer?
For Virginian policymakers and businesses, allowing Virginia to be overtaken in Data Center construction due to space and energy demands is unlikely to be an attractive option. With areas like Atlanta now hot on Virginia’s heels as the second-largest Data Center market in the US, Virginia needs to tackle these restrictions to facilitate further growth.
The good news is that the oversaturation is currently limited to the North. The South – particularly areas like Gainesville and Fredericksburg – is ripe for Data Center development. This is where we are seeing the next wave of Data Center construction, as well as urgent demand for the leadership talent needed to lead the charge. You can find more insight on the industry’s leadership talent shortage, and how we are helping businesses to close it, in our latest guide, The Data Center Decade: Who will lead?
South Virginia: an opportunity for Data Center professionals
As the market’s expansion moves south, Data Center talent is in high demand in the region – especially those top tier leadership skills that are needed to lay the foundations of these new ‘suburbs’ branching off from Data Center Alley’s ‘capital city’.
Those professionals who take the first step have an opportunity to build this new hotspot effectively from the ground up. There is no question of if the industry will expand south, only when: and with many Data Center operators already constructing or active in the area, the first phase has already begun. Although it may seem like a step away from the established data community in Loudoun, it is projected that the area will soon become another bustling metropolis of Data Center activity throughout the next decade.
At Imperium, we’re currently looking for talented Data Professionals to occupy senior leadership positions in South Virginia’s growing Data Center sector. If you are interested in exploring a role, or just want to hear more insight from our people on the ground in this new Data Center geography, get in touch with us:
