Henrico Planning Commission endorses Sandston data center proposal despite citizen concerns

The Henrico Planning Commission last week endorsed plans for a proposed 622-acre data center complex in Sandston, despite uniformly negative feedback during a public hearing from nearly 20 speakers about the project’s potential environmental impact and the possible loss of a portion of a Civil War battlefield on the site.

Following a two-and-a-half-hour hearing April 11, the commission voted 4-1 to recommend that the Henrico Board of Supervisors approve Richmond developer Hourigan’s plans to rezone the site (located at the southeast corner of the I-64/I-295 interchange in Sandston, adjacent to the White Oak Technology Park) from an agricultural to a light industrial classification to permit the project. Three Chopt Commissioner Bob Shippee cast the lone opposing vote.

If ultimately approved by the board of supervisors, the project could result in more than a dozen large data centers, along with office or advanced manufacturing space, according to paperwork filed by Hourigan.

Planning Commission Chair William Mackey, who represents the Varina District (in which the site is located), suggested in comments just before the vote that he was pleased with the 14 pages of voluntary development conditions, known as proffers, that Hourigan had offered for the project and thanked citizens for their input and the developer’s team for responding by enhancing some of those commitments.

“By law, we’re not allowed to ask for proffers,” Mackey said. “So that kind of limits us to what we can do. All we really can do is – I know this sounds like a dirty word but – hold them to the industry standards, because those are the tools that we have to work with right now.”

A parade of speakers addressed the commission to express concerns about the possible impact the development could have on the area’s character and carbon footprint, among other issues.

Numerous citizens referenced a pending Virginia Joint Legislative Audit Review Committee study about data centers and asked the commission to defer the proposal until more was known about potential impacts. Some also pointed out that the General Assembly could consider new regulations on data centers, particularly related to energy efficiency, after the study is completed.

“Please, let’s not rush into anything,” said speaker Susan Wagner.

But Mackey said that there was no need to defer because any new regulations from the state would apply to these data centers regardless.

Andy Condlin, representing the developer, said that the rezoning process was only the first stage of the project and that there would be significant lag time before individual plans of development were submitted for phases of construction once tenants were identified.

The proposed complex is named White Oak Technology Park 2, a nod to the existing (and separate) 2,278-acre White Oak Technology Park, which is home to multiple light industrial tenants, including massive QTS and Facebook/Meta data centers.

Several speakers brought up Henrico’s decision to lower taxes for data center equipment in 2017 – from $3.50 to $0.40 per $100 of assessed value – in an effort to attract them to the county. Paige Wesselink, representing the Virginia Chapter of the Sierra Club, argued that while Virginia bears the environmental impacts of being the data center capital of the world, it doesn’t receive adequate benefits.

Speaker Gray Montrose said that Fairfax and Fauquier Counties receive 10 times the tax rate of Henrico, estimating the difference at $700,000.

“We should at least get out of this what every other locality does,” Montrose said.

Henrico earned about $13 million in taxes last year from the 16 data centers in the county, according to Henrico Planning Director Joe Emerson. The county’s overall tax and fee revenues were about $1.1 billion. Emerson also noted that data centers cause less frequent usage of roads and infrastructure, as well as fewer citizen complaints, compared to similar light industry such as distribution centers.

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Environmental concerns took up the largest portion of the commission’s hearing at last week’s meeting.

Several speakers expressed concerns about the water and energy usage required to operate data centers and said they didn’t agree with the contention made by county staffers and Hourigan officials that newer data centers use very little water (typically only what is required for sanitary purposes, according to Condlin and Henrico Public Works Director Bentley Chan).

Speaker Aileen Riviera said she worried that the high energy-usage needs of the data centers would raise county residents’ electricity bills and require the use of fossil fuel power, increasing Henrico’s carbon footprint despite commitments to reduce it.

Chan responded to concerns about water usage by explaining that county currently has a water supply surplus of 50 million gallons a day and that it would be possible to use stormwater for cooling purposes.

Condlin reiterated the developer’s commitment to build to a LEED (Leadership in Energy and Environmental Design) Silver standard, a design efficiency standard that is met by only 5% of data centers. But he said that the developer could not commit to a specific figure for renewable energy usage, as the data center industry is still evolving in that regard, and that it would be impossible to install solar panels while also keeping to a commitment to keep 35% of the site as open space.

John Montgomery, with the Henrico Conservation Action Network, pointed out the developer could be held to operational efficiency standards and not just building efficiency standards. He contended that Hourigan’s failure to provide such standards was not due to impossibility but instead to its stated desire to make the complex marketable to tenants.

The other major environmental concern was air and noise pollution. Condlin admitted that there could be up to 20 backup diesel generators per building, based upon size and tenancy but reiterated that they would only be used in emergencies – at times when other residents and businesses likely would be using them as well – and tested monthly. Montrose likened the impact of that many generators on surrounding areas to one-sixth of a gas-fired power plant.

Condlin agreed to precisely define the emergency situations in which backup diesel generators might be used, before the proposal reaches the board of supervisors next month.

David Paylor, former Director of the Virginia Department of Environmental Quality who is serving on retainer for Henrico County, explained that DEQ would rely upon monitoring stations and modeling data to identify any air quality violations. He added that the generators could be modified to ensure they meet air quality standards even if they were not rated Tier 4, a higher standard that some citizens have requested.

Montgomery advocated that the developer should commit to putting up its own air monitoring equipment, since the nearest DEQ station is miles away.

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The other major focus of citizen pushback was the impact of this development on the Savage Station Battlefield. Mark Perrault, with the Richmond Battlefields Association, pushed back on Condlin’s claim that the site only contained peripheral portions of the battle.

“Old Williamsburg Road was the core of that battle,” he said. “Artillery was placed on the field in this area. Men died in this area.” Perrault said that the battle was a major turning point in the history of the Civil War and its evolution towards ending slavery, noting that a portion of the battlefield had already been lost under I-295 and the developer wouldn’t guarantee public access.

“If you destroy that battlefield—that history, that outdoor classroom is lost forever,” he said.

Jeff Dawes, also of the association, added that two Union generals had headquarters on 18 acres of the property, and he implored the county to allow the association to buy it for preservation.

A citizen, Mike Cobb, referred to the site as “hallowed ground” and predicted regret.

“Nobody 50 or 100 years later says, ‘I’m sure glad we tore it down,’” Cobb said.

Condlin emphasized that the developer would conduct a Phase I archeological study before any plan of development and that the U.S. Parks Service would have the right to require preservation based on those findings. He also said that Hourigan would comply with all state and federal laws regarding historical preservation and conceded that the Civil War Sites Advisory Commission had declared Savage Station Battlefield worth protection but noted that it was deemed the lowest of four levels of priority.

A related concern raised by residents was how this large development would fit into the surrounding area. Bland Goddin of HCAN expressed her disappointment that the county was not following its original intention in its 2026 Comprehensive Plan to use the area for offices, green space, and a walkable corridor. She noted that now data centers would divide the two nearby communities and local residents would lose the opportunity for a grocery store nearby.

Montrose added that 76 acres had been planned for recreational uses.

“This is a park,” she said. “We’re losing a park.”

Nelson noted that the Comprehensive Plan was adopted in 2009, though, and Emerson said that it is meant to be a guide, not a promise. The county is in the midst of updating the plan as part of years-long process. He added that Henrico likely would not be adding much new office developments since existing offices are not being fully utilized.

“The office market essentially doesn’t exist right now and it hasn’t for some time, because the pandemic essentially pushed us to a work-from-home environment,” Emerson said.

Mackey opened the discussion by reading a prepared statement responding to criticism of his impartiality due to his employment at Dominion Power, which recently earned approved to locate twin transmission lines through the site, in part to serve future users there. He said that he was capable of deciding the case in the public interest, since his role at Dominion is focused on metering services and doesn’t involve the expansion of power service. And, he said, the planning commission doesn’t actually hold decision-making power on this case or other rezoning proposals – the board of supervisors does.

That wasn’t sufficient for speaker Kelsey Cappiello, who said that Dominion’s website makes clear its desire to attract more data center customers. Further, she said, the Virginia Code prohibits even the appearance of corruption.

The board of supervisors is expected to hear the case at its May 14 meeting.

– Citizen Editor Tom Lappas contributed to this article.