The Energy DELTA Lab’s 400-acre “Data Center Ridge” site development project will be the catalyst for the most sustainable and energy efficient data center cluster in the world. Located in Southwest Virginia’s Wise County, the campus has the potential to be home to over 1 gigawatt of hyperscale data centers with access to nearly 10 billion gallons of cool underground water as well as robust behind-the-meter clean energy.
Developing the 'Data Center Ridge' site in Southwest Virginia is a top priority for the region that is backed by data from Project Oasis, an InvestSWVA-led opportunity analysis along with a business case for the data center industry to pursue location diversity. Our region is poised to be home to the most sustainable and energy efficient data center cluster in the world. Due to the unique nature of this previously-mined brownfield property in Wise County, VA, which is a secure, remote yet accessible environment with a vast land position that leverages the region's typography and geology, we will create a first-of-its-kind site that will use naturally replenishing, clean underground water below 55 degrees Fahrenheit, the largest single water source known in the region at nearly 10 billion gallons, to our advantage, which will ultimately create economies of scale as well as power and water cost savings that make investing in Southwest Virginia an attractive business decision for enterprise and colocation operations. Given this validated water source, we estimate that we can locate 10-12 hyperscale data centers on this site that could utilize up to 1 gigawatt of power. Conventional water access also exists at the site, which could serve as the primary or backup water source. The site, carefully reviewed by the Virginia Department of Energy, features approximately 400 established acres along with considerable additional acreage for future development and behind-the-meter clean energy deployment that will ultimately result in greater grid resiliency. The DELTA Lab is currently conducting due diligence with developers on a number of nearby clean energy generation projects between 1.2-2.4 gigawatts in generation capacity.
Energy DELTA Lab
The Energy Discovery, Education, Learning and Technology Accelerator Lab, Inc., or Energy DELTA Lab, is a multi-site energy testbed and deployment strategy over four years in the making that was formally introduced in the 2022 Virginia Energy Plan. The initiative, chaired by former Alpha Natural Resources CEO Mike Quillen, is a collaboration of business attraction campaign InvestSWVA, the Southwest Virginia Energy Research and Development Authority and the Virginia Department of Energy.
The nonprofit is a lean operation focused on accelerating research and deploying assets moving at the speed of business while directing funds to the implementation of projects, not overhead. Our focus is two-fold: work with projects that not only create value for Southwest Virginia through new capital investment, jobs and manufacturing opportunities, but also demonstrate Virginia is leading the way in the clean energy transition while leveraging legacy energy assets, including land, power and water in coal-impacted communities.
The Energy DELTA Lab's purpose is to provide wraparound service to projects seeking sites to test and/or deploy innovative and clean energy technologies. It also is a matchmaker to all local, state and federal partners. The DELTA Lab has an exclusive partnership with a large landholding company that owns 65,000 acres of former mined lands, holding both the surface and mineral rights. This property in Wise County is close to major roads, K-12 schools and higher education entities and downtown communities. Yet, the site is remote enough to meet clean energy project site specifications.
The Energy DELTA Lab team is working with several clean energy projects at various stages of due diligence in the portfolio exceeding $10 billion in private investment that would create over 4,000 new jobs. These projects would be in close proximity to the Data Center Ridge campus and would generate power in excess of what could be utilized on the entire campus at full capacity. In general terms, our team is working on innovative technologies that would complement data center development, including:
Advanced nuclear reactors (small modular reactors);
Hydrogen production, carbon capture and underground storage;
Spent nuclear fuel recycling;
Utility-scale wind;
Utility-scale solar;
Pumped-storage hydro;
Biochar production; and
Waste coal site repurposing.
As a result, this site with the expected data center developments would be the most significant economic development project the region has ever seen. The Energy DELTA Lab team is working closely with data center developers today on the opportunity to be part of the region’s future state. The Data Center Ridge site development project has the full support of a wide-ranging group of economic development, government, workforce development and community leaders. In addition, we are working with the region's electric utilities and fiber providers to coordinate investment in upgrades to their infrastructure. As a regional project, the Data Center Ridge campus will bring new, high-paying jobs and significant investment to Southwest Virginia, a key to our shared economic diversification strategy.
A Priority for the United States Federal Government
Location diversity and national security - 70 percent of the world's internet traffic flows through Virginia-based data centers, and Northern Virginia is home to the largest cluster in the world. There is no question that Virginia is well-positioned to lead a new strategy for data center growth. However, there are inherent challenges that necessitate the industry to look beyond traditional locations. In addition, public outcry continues to build in Northern Virginia over new data center developments. Futhermore, the federal government and its many defense-related agencies rely on this industry to deliver reliable service without interruption. Given the large concentration of data centers near the nation's capital, there is inherent risk in continuing growth primarily in one location. That's where Southwest Virginia's strategy becomes a solution to these challenges. Our team along with InvestSWVA have outlined a data-informed analysis, now backed by serious interest by developers in the industry, that makes the business case for locating in Southwest Virginia.
New jobs and investment - Along with InvestSWVA, we are focused on strategies that leverage our region's strengths and will bring high-paying jobs to the region. Data centers are the ultimate win-win for our communities and local governments. Over the past two decades, tech firms have invested some $126 billion to build data centers in Northern Virginia, and the sector now employs some 5,400 workers statewide—not counting more than 10,000 engaged in data center construction. Data centers cost local governments relatively little while generating substantial returns. In Northern Virginia, data centers return $13.20 to local government coffers for every $1 generated as a result of their presence. Southwest Virginia's regional average salary sites at $34,237. Meanwhile, the average annual salaries for data center jobs in Virginia were $134,300 per year in 2020. Given the significant population and extraction industry job losses over the last three decades, Southwest Virginia is looking to industries that will be here for the long term.
Tailor-made industry for a rural region in transition - Southwest Virginia's transition over the last three decades has faced challenges but also seen many bright spots. In just three years, InvestSWVA has created a new vision for the region declaring we have the physical assets and the talent to be home to tech companies looking to grow. In fact, the team has delivered 789 new jobs and $182.8 million in investment. Data center job figures complement the region's pursuit of low labor-intensive industries. While data centers employ anywhere from 15-75 high salaried individuals, the capital investment is in the hundreds of millions of dollars, which translates to significant new tax revenues. Our local governments support this approach and implemented the lowest regional data center equipment tax rate in the Commonwealth. Furthermore, our site will provide the industry the impetus to expand operations in a region that can provide robust and redundant power, fiber and water along with a secure, remote yet accessible environment with sufficient land for behind-the-meter renewable and clean energy generation.
A Priority for the Commonwealth of Virginia
The Energy DELTA Lab and its business development partner InvestSWVA have laid out a data-informed vision that includes Southwest Virginia becoming a location of choice for data centers and other high-tech companies looking to grow. As the demand for digital services grows exponentially among individuals and organizations, the need for data centers to process all this online data also continues to expand. Recent reports out of Loudoun and Prince William counties, traditional hotbeds for data center construction, have highlighted growing challenges with future development in Northern Virginia. As the data center industry faces these continuing constraints, we are making the business case to locate in Southwest Virginia.
The important question for the Commonwealth's leaders is, "why are data centers important to Virginia?" First, data centers bring growth. Northern Virginia hosts the largest concentration of data centers in the United States, exceeding the next five largest U.S. markets combined in 2021. Second, data centers bring investment and jobs. Over the past two decades, tech firms have invested some $126 billion to build data centers in Northern Virginia, and the sector now employs some 5,400 workers statewide—not counting more than 10,000 engaged in data center construction. Third, data centers cost local governments relatively little while generating substantial returns. In Northern Virginia, data centers return $13.20 to local government coffers for every $1 generated as a result of their presence.
Data centers require reliable electricity, access to water for cooling, and large fiber-optic cabling to carry the data from thousands of servers around the globe. These are advantages we have or can support in Southwest Virginia, and the benefits to the entire Commonwealth will be significant. In fact, our 'Project Oasis' launched in 2019 has created the blueprint for arguably the most innovative, sustainable and energy efficient data center campus in the world, leveraging vast tracts of land that can provide on-site clean and renewable energy generation along with abundant 52-degree water contained in former underground coal mine sites.
Southwest Virginia's economic diversification strategy is a land play that leverages our assets. As other regions of the Commonwealth are grappling with capacity issues and public consternation that challenge future development of data centers, Southwest Virginia has an opportunity to compete for that business. With cheaper, secure and vast tracts of land, available workers with community colleges as our partners, the lowest regional data center equipment tax rate in the Commonwealth and solar and geothermal cooling assets that will help data centers meet their sustainability targets, we know first-hand that data centers are now looking to our part of the Commonwealth for their future growth. When they choose to expand here, we will welcome these data centers with open arms and will capitalize on the many improvements they will bring to our communities. We have reached an inflection point. Our project site in Wise County will not only serve as the catalyst for the long-awaited economic transformation of Southwest Virginia but will provide economies of scale attractive to the data center industry.
A Coalition of Community Partners
InvestSWVA - As our business development partner, this initiative has led the way in marketing the data center opportunity to industry experts, including the Data Center Coalition and developers. It led the original opportunity analysis in 2019 that was rolled out by our Congressional and General Assembly delegation. The initiative is now working with potential data center developers on locating at the Data Center Ridge site.
General Assembly Delegation - We work closely with region's senior legislators, including Delegate Terry Kilgore, Delegate Israel O'Quinn and Senator Todd Pillion, on project development, given their roles as co-chairs of InvestSWVA. This work has resulted in 789 new jobs and $182.8 million in capital investment.
LENOWISCO Planning District Commission - We have worked closely with the commission's staff and member communities, including the City of Norton and the Counties of Dickenson, Lee, Wise and Scott, since 2019 with the launch of InvestSWVA's data center opportunity analysis.
Lonesome Pine Regional Industrial Facilities Authority - We worked with the LPRIFA and its member communities, including the City of Norton and the Counties of Dickenson, Lee, Wise and Scott to pass the Commonwealth's lowest regional data center equipment tax rate. The same localities also passed resolutions of support for data center development in Southwest Virginia.
Wise County and its Industrial Development Authority - We are working closely with county officials, including the County Administrator and Executive Director of the Wise County Industrial Development Authority. Wise County is a key partner in the development of our sites, and we are jointly marketing the data center opportunity.
Southwest Virginia Energy Research and Development Authority - This public body will continue to provide a forum in which to explore innovative data center technologies that address sustainability and efficiency, which will be Southwest Virginia's way to differentiate itself from other areas.
Virginia Department of Energy - The agency will continue to provide invaluable land expertise, including surface and sub-surface expertise, in the development of this property.
Mountain Empire Community College - The college’s administrative team and its president are highly engaged in our workforce development initiatives and plan to model the Northern Virginia Community College curriculum partnership with Amazon Web Services.
For More Information, Contact:
Will Payne, Advisor
Email