Community Pushback Dooms 500-Acre Virginia Data Center Campus
Data center campus developer Diode Ventures has scrapped its plans for a 515-acre development near Richmond, Virginia, the latest major data center project to be derailed by community opposition in the country’s fastest-growing data center market.
Diode Ventures, a subsidiary of Kansas City-based engineering and construction firm Black & Veatch, submitted plans late last year for the campus, located 20 miles east of Richmond in Charles City County.
Branded as the Roxbury Technology Park, the campus would have been the first foray into Virginia for Diode, whose portfolio is focused on the Midwest, where it counts Big Tech hyperscalers like Google and Meta as tenants.
The developer’s decision to withdraw its plans, first reported by Richmond BizSense, comes despite the county planning commission recommending approval of the project in May. Rising local opposition subsequently led the county’s board of supervisors to delay a vote to approve the project, with residents reportedly concerned about potential environmental impacts like noise and light pollution and upset by a perceived lack of transparency from Diode about its plans for the site.
Diode has indicated it doesn't intend to resubmit its proposal in Charles City County and is moving on from the site.
“Despite the county planning commission’s support of the project earlier this year, we made the decision to shift our focus elsewhere based on the results of conversations with our local collaborators and analysis of the site’s availability to be shovel-ready with power and municipal support,” Diode said in a statement to Richmond BizSense.
Diode’s now-abandoned project is the latest in a string of developments near Richmond to be delayed or derailed by a wave of local opposition.
No American city is adding data centers faster than Richmond: The market’s inventory surged more than sevenfold in the first half of the year, adding more capacity than any other U.S. market, according to Avison Young. More than 9 gigawatts of development is planned or underway near Richmond, a pipeline that would dwarf the region’s existing inventory.
But rising local opposition poses an immediate threat to Richmond’s data center growth, Avison Young analysts told Bisnow this month. The political landscape has shifted as the pace of construction has sparked public concern over environmental impacts, electricity costs and the erosion of rural character.
In June, Henrico County revoked by-right zoning for data centers and imposed new design rules after public backlash over the volume of large-scale proposals. In Chesterfield County, Tract withdrew its application for a 700-acre campus last month following negative feedback from the planning commission, though it plans to resubmit. Amazon Web Services also scrapped plans for a 1,370-acre campus in Louisa County in response to community opposition.
