Henrico tightens restrictions on data center projects, eliminates by-right approvals

White Oak Technology Park is home to the bulk of the existing data centers in Henrico. (BizSense file)

Following through with their previously stated desire to increase restrictions on data center development in the county, Henrico supervisors on Tuesday adopted revised rules that no longer allow such projects as a by-right use.

The board voted unanimously on the new regulations that require supervisors’ approval – and public hearings – for any new data center project anywhere in the county, including White Oak Technology Park, where such development has previously been allowed by right.

That’s a change from an initial proposal to create an overlay district aimed at encouraging more data centers within White Oak, while requiring provisional-use permits – and the hearings that come with them – for data center projects beyond the tech park.

At a joint meeting last month with the Planning Commission, the board deferred voting on that proposal and instead directed staff to create rules that require hearings for all new data centers across the county, White Oak included.

The proposed Technology Boulevard Overlay District, highlighted in red, was removed from the rule changes.

By requiring all data center projects to obtain provisional-use permits, the revised rules eliminate the possibility of such projects being allowed as a by-right use according to existing industrial, office or business zoning.

Supervisors reiterated Tuesday that the changes were in response to concerns they had heard from the public about a proliferation in data center development in the county and potential impacts such as energy use, water service, noise, air quality, and appearance and visual buffering.

A speaker in a hearing that preceded the board’s vote said the changes were coming a year too late, noting its approval last year of a 600-acre data center project for a site in Varina that was subsequently sold to industry giant QTS.

Prior to the vote, Varina Supervisor Tyrone Nelson defended his support of that project and others while also acknowledging changes that the new rules are meant to address.

When Facebook, now Meta, announced plans for a $1 billion data center at White Oak that it has since expanded, Nelson said at the meeting, “I didn’t understand everything that went with data centers. I didn’t. But I was excited that they were coming to our community in 2017.”

Noting as well QTS’s arrival at White Oak, where it filled a void left from Qimonda’s closure of its semiconductor plant there over a decade ago, Nelson added, “I own that, and I own voting last year for the rezoning of the property that QTS purchased.”

Tyrone Nelson

“I was thinking beyond just that particular property. I was thinking about a housing crisis and I was thinking about us being transformational,” he said, referring to Henrico’s $60 million housing trust fund that was announced last year and is fueled by economic development revenue generated from data centers specifically.

“If I had to make that decision again today, I probably would,” Nelson said. “The main reason I am behind eliminating by-right now is because data center movement is moving outside of the tech park. Henrico County created it 40 years ago for large industry. We recruited people to come here for that.

“The proliferation of it is now spreading out beyond that particular center where we are focused on that industry, and the Varina district is over 50% of the county. If we don’t do this, we’ll have data centers everywhere in the district where there’s” manufacturing, business or office zoning, Nelson said. “What we’re doing tonight is a good thing.”

One such project, from Centra Logistics, has been proposed for about 200 acres behind the Fareva pharmaceutical facility off Darbytown Road, just outside White Oak. The group has been working toward securing approval for a 1 million-square-foot data center campus there. With the rule change, it would now need to secure a provisional-use permit through the public hearing process.

Centura’s David Wagner addressed the board Tuesday and said it had met with other speakers from last month’s hearing and had come to some agreements about the project, which he has said his group put more than $700,000 into before the rule change was conveyed.

“My hope is that Henrico County becomes a national model for how data center development can be done right,” Wagner told the board, adding that it is his intent to help with that.

At last month’s hearing, Planning Director Joe Emerson told the board that he was working with the county attorney’s office on some cases where requests have been made for existing data center proposals to be vested and not subject to the new rules. Vesting provisions were not included in the rules package adopted on Tuesday.

In addition to the permit and hearing requirements, Nelson also asked that the rules be revised to increase the amount of buffers that are required between data center projects and residential property lines from 200 feet to 500 feet. That change was worked into the new rules as well.

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