Digital Infrastructure &
Data Center Information Hub
Understanding digital infrastructure
This Resource Center seeks to offer clear, accessible insights and information into the digital infrastructure ecosystem — its components, its economic and community impact, and the policies shaping its growth — to better equip local leaders, stakeholders, and the public to engage with and help guide this vital sector.
Why Digital Infrastructure?
This Q&A highlights a key point often overlooked: data centers are just one part of the broader digital infrastructure ecosystem that gives Virginia communities and the state a competitive edge in economic development.
What is a Data Center?
Data centers are mission-critical infrastructure, enabling our digital world to function and grow, supporting everything from Artificial Intelligence, streaming movies, video calls, and hospital records to running cloud services, online education, e-commerce, and national defense.
Importance of Data Centers
As global data generation surges, data centers offer a more efficient and secure way to manage computing than traditional decentralized systems.
Growth of Data Centers
Driven by the relentless growth of the digital economy, data centers have become critical infrastructure — powering everything from cloud computing to AI — and their presence continues to expand to meet rising demand.
Generating Economic Benefits
Data centers generate major economic and community benefits for Virginia — supporting tens of thousands of jobs, driving billions in investment through construction, and contributing to local infrastructure, education, and nonprofit initiatives.
Beyond Data Centers
Data centers have a ripple effect by supporting a wide range of industries that boosts local businesses, strengthens supply chains, and brings investment to communities across the state.
Questions for Localities to Ask
Local governments should take these key steps to effectively evaluate and guide data center development.
How to Overcome NIMBYism
This strategic guide provides turning NIMBYism and community opposition to data center development into constructive dialogue.
Getting Localities Data Center Ready
As data center development continues to accelerate, local governments must be equipped to assess proposals through a lens of infrastructure readiness, environmental responsibility, community alignment, and long-term benefit.
How To Think About Energy
The energy consumption used by data centers is significant. These facilities require a reliable, large-scale power supply to maintain uninterrupted operations.
Water Resource Considerations
Water plays a critical role in cooling data center systems, especially in traditional evaporative cooling methods.
Data Center Tax Policy Issues
Virginia taxes data center computer equipment primarily through local business personal property taxes, with rates and incentives varying widely by jurisdiction. At the state level, qualifying data center equipment is temporarily exempt from retail sales and use tax through 2035.
Media Coverage of Data Centers
Media coverage across Virginia has increasingly focused on data centers and digital infrastructure. Based on reporting from June 2025 through January 2026, this analysis examines how these topics are being framed by media in Virginia.