Data Centers and the Economy
To understand the regional economic development perspective on data center growth, we spoke with Jay Langston, CEO of the Shenandoah Valley Partnership (SVP). As the regional economic development and marketing organization for the Shenandoah Valley, SVP brings together business, government, education leaders—as well as statewide strategic partners— to drive investment and job creation. We asked Jay to share his insights on how data center development is shaping the region’s economic landscape, specifically how it relates to successful industries in our area, such as agriculture, manufacturing, and tourism.

Jay Langston
CEO
Shenandoah Valley Partnership
Jay: Until recently, data centers were not a major focus for our area. The few inquiries we saw were from facilities that were either too large or required infrastructure that we don’t have in the Valley–we were simply uncompetitive compared to other locations. However, that situation has recently changed.
From a prospective developer’s standpoint, the most critical factor in siting a data center is proximity to a high-voltage transmission line, since these facilities demand far greater electrical capacity than typical uses. Access to water and sewer infrastructure, appropriate distance from residential areas, and alignment with the character of the specific property are also key considerations.
When considering whether a locality should accept a proposed data center site, the key is assessing how the use fits the specific property, as seen with the Strasburg site. That location was considered for a data center site because it’s uniquely constrained for other uses: it’s bordered by I-81 and a rail line, and it already faces site access challenges. These factors make the site unsuitable for typical commercial development. But, with the addition of transmission capacity for the electrical needs, it could be well-suited for a carefully-sited data center, provided sufficient transmission capacity is available.
Furthermore, this type of facility offers distinct advantages over other land uses regarding community impact. A data center, utilizing a closed-loop cooling system, will recycle most of its water after the initial hookup. Once operational, it demands very few people—just 25 to 50 highly-paid employees—meaning it won’t significantly strain the school system or place a huge new burden on highways or local emergency services.



