Amazon Web Services intends to invest $35 billion in new data centers in Virginia, according to Friday's announcement by Governor Glenn Youngkin and reported first by AP.
However, AP notes that the deal still needs parliamentary approval for the millions of dollars in incentives, but leaders of the General Assembly from both parties declared their endorsement in a press release from Youngkin's office.
LAS VEGAS, NEVADA - NOVEMBER 30: Attendees walk through an expo hall during AWS re:Invent 2021, a conference hosted by Amazon Web Services, at The Venetian Las Vegas on November 30, 2021 in Las Vegas, Nevada.
Potential Site Locations
The technology and computer servers needed to support current internet usage are housed in data centers, and demand is currently rising. However, the large cooling capacity and powerful fans required by the data centers might create noise.
Additionally, they use enormous amounts of electricity, which may necessitate building high-voltage transmission lines.
A representative for the Virginia Economic Development Partnership, Suzanne Clark, told AP that Amazon Web Services is looking into many potential site locations with the Commonwealth but did not name any specific sites.
According to the Northern Virginia Technology Council, the state has been a tech hotspot since the advent of the internet and boasts more data centers than the next five biggest markets in the US.
This year's legislative proposals would tighten the restrictions on potential center locations.
The locations of the data centers, which must be constructed by 2040, will be decided at a later time, according to the governor's office.
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Attractive to Tech Companies
It is also worth noting that tech companies find northern Virginia attractive for business since its servers support time-sensitive applications such as gaming, finance, and many more.
However, not everyone welcomes this plan. Bill Wright, a resident from Prince William County, expressed his dismay over the data center proposal and told the AP that big tech money had been "intoxicating" politicians.
Youngkin spokesperson Macaulay Porter claimed that Virginia has never seen a capital investment of this size. The governor's office stated that it is anticipated to create more than 1,000 jobs statewide.
AP notes this is small in contrast to the 25,000 jobs brought about by Amazon's choice to establish a second headquarters in Arlington County in 2018.
Amazon is expected to benefit from the new Mega Data Center Incentive Program and will also be eligible for a grant of up to $140 million for workforce development, site enhancements, and other expenses. But both will need parliamentary consent first to push through.
The enabling law being considered by the General Assembly states that the precise amount of the reward under the incentive system will depend on how many jobs are created. Additionally, it will provide temporary exemptions from a Virginia sales and use tax imposed on data centers.
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