ALEXANDRIA, Va. — Richard Andre Newman believed he would live out his days in the serene, green community of Bren Mar Park in suburban Virginia. Raised in the area, he cherished the bike-riding children and the friendly neighbors who greeted each other. However, with the prospect of a massive new neighbor—Plaza 500, a 466,000-square-foot data center alongside an electrical substation proposed just a stone’s throw from homes, playgrounds, and a community center—Newman is contemplating leaving the neighborhood he planned to stay in for life.
As Newman nears his 60th birthday, he feels powerless to prevent this construction. “I intended to stay here until my last breath,” he expressed, lamenting the arrival of the project.
Data centers, which resemble sprawling, windowless warehouses filled with high-speed servers that facilitate numerous digital functions, have become integral to America’s landscape. Their growth has surged due to the boom in cloud computing and artificial intelligence, prompting municipalities across the country to vie for deals with tech giants. However, as these facilities encroach on residential areas—near homes, schools, and parks—community members are increasingly voicing concerns about the implications for local economies, social dynamics, and environmental health.
Tyler Ray, an outspoken opponent of the development and an advocate for community engagement, argues that the incentives provided to attract the data center do not justify the impacts on local residents. “All we’re asking is that as the county seeks to bring in revenue from data centers, they do so in a manner that does not drive residents away,” Ray stated.
The hills of Northern Virginia are already dotted with over 300 data centers. Biking along the Washington & Old Dominion trail, cyclists frequently find themselves alongside these facilities, while daily commuters can easily spot them from their Metro rides into the capital.
Newman, who leads the local homeowners association, points out that Plaza 500 represents an unprecedented encroachment into residential areas. Starwood Capital Group, the investment firm behind the project, assured county officials that the center would provide significant property tax revenue and an array of jobs, including both permanent roles and temporary construction positions.
After moving to the Bren Pointe community in 2022, Tyler and his husband, in search of both accessibility to Washington D.C. and a connection to nature, soon learned of Starwood’s interest in developing the Plaza 500 project. Following this revelation, they and their neighbors organized protests, participated in community meetings, and attempted to gain media attention in hopes of shutting the project down. Despite their efforts, the Fairfax County Board of Supervisors opted to grandfather the Plaza 500 project under older zoning guidelines, meaning it would not be subject to the more stringent rules imposed on new developments.
Ray has voiced his concerns regarding the potential strain on an already overloaded power grid. As of 2023, over 25% of Virginia’s power was consumed by data centers, and projections suggest this figure could skyrocket to nearly 46% by 2030 if growth trends continue. Additionally, estimates indicate that a mid-sized data center could require as much water daily as 1,000 households, raising alarms over water resource management. He is equally concerned about air quality, citing emissions from diesel generators used to power the centers, which contribute harmful pollutants to the atmosphere.
A spokesperson for Starwood Capital declined to comment on these local tensions.
Local officials are enthusiastic about the financial prospects that data centers present. Virginia’s Governor Glenn Youngkin noted that existing data centers contributed upward of $1 billion in tax revenue, which outweighs the $750 million in tax incentives doled out to tech firms in 2023. Typical data centers may only create a limited number of direct jobs—often fewer than 100—but supporters argue that they generate thousands of indirect roles through associated services like construction and technology support.
Kathy Smith, vice-chair of the Fairfax County Board of Supervisors, supported the Plaza 500 project, asserting that data center proliferation is an inevitable part of regional development that Fairfax County must capitalize on. “It’s my duty to consider the larger picture,” Smith observed, reiterating that data centers are here to stay.
Meanwhile, on the West Coast in Morrow County, Oregon, Amazon Web Services (AWS) has established multiple data centers near the farming town of Boardman. In the past year, AWS contributed roughly $34 million in property taxes and fees, following a $66 million tax break agreement. They further invested in community initiatives, providing funding for emergency services, infrastructure enhancements, and other resources benefitting the local population.
Nonetheless, skepticism persists among residents regarding the fairness of these tax deals. Some recall a past controversy where elected officials were found to have conflicts of interest when approving data center contracts with AWS. Although those officials have since retired, mistrust in the relationship between local authorities and large corporations like AWS remains strong, especially concerning their significant tax breaks totaling approximately $1 billion over 15 years for new developments.
Former county commissioner Jim Doherty recounted that during their initial meeting with AWS representatives, they were asked to share their dreams and needs, a gesture that left him feeling uneasy about the balance of power.
“While we strive to engage with community stakeholders,” explained Kevin Miller, Vice President at AWS, “this outreach is meant to ensure we understand and align with community goals.”
Ultimately, local leaders, including Mayor Paul Keefer and Police Chief Rick Stokoe, maintain that a direct connection with AWS enables them to negotiate effectively and benefit their community. “Without AWS, certain developments simply wouldn’t happen,” Keefer said, pointing out ongoing construction efforts made possible by the partnership.
Both Keefer and Stokoe emphasize that incentives are critical to attracting such businesses to their area.
