Hampton Takes Proactive Approach to Data Center Development with New Zoning Policy

Hampton City Council has taken a significant step towards embracing the future of data center development by hiring a consulting firm to help create a comprehensive zoning policy. The move comes as the city looks to potentially accommodate the growing demand for data centers, which are physical facilities that house computers, servers, and other networking equipment to process and distribute data.

Data centers have become a crucial component of the digital infrastructure, with Northern Virginia emerging as a hub for these facilities. The rapid growth of cloud computing and artificial intelligence has led to an increased demand for data centers, with Virginia becoming a prime location for these facilities. However, the development of data centers also raises concerns about energy consumption, water usage, and noise pollution, making it essential for cities like Hampton to develop clear guidelines and regulations.

The city has hired the Southeastern Institute of Research on a $52,000 contract to act as its consultant in developing the zoning policy. The firm's Senior Director, Ried Watkins, has acknowledged the potential challenges associated with data centers, including energy demand and water consumption. According to a state study, unconstrained energy demand from data centers could drive up Virginia's energy usage by 183% by 2040, resulting in higher power bills for customers. However, Watkins also highlighted the benefits of hosting data centers, including financial incentives and increased electronic bandwidth for local businesses.

Data centers can vary significantly in size and scale, ranging from smaller enterprise facilities that use up to 10 megawatts of power and consume up to 10 million gallons of water per year, to larger hyperscale facilities that require 10 times that power and can consume between 190 million and 530 million gallons of water per year. As Hampton considers its approach to data center development, it must carefully weigh the potential benefits and drawbacks of hosting these facilities.

City Manager Mary Bunting emphasized the importance of developing clear guidelines to prevent future data centers from advocating for favorable deals at the expense of the community. "It's really essential that we look at this proactively, so that we don't end up behind the eight ball," Bunting said. The city's proactive approach is crucial in ensuring that Hampton is well-prepared to accommodate data center development, while also protecting the interests of its residents and businesses.

The development of a comprehensive zoning policy will also require coordination with neighboring cities, such as Newport News, which is also considering its approach to data centers. According to Watkins, the Peninsula needs to create a unilateral approach to determine whether it is open to becoming Virginia's next data center hub. "Whatever we come up with for recommendations and policy for the city of Hampton, it needs to talk, or at least coordinate with what's going on over in Newport News," Watkins said.

As Hampton moves forward with its data center zoning policy, it will be essential to balance the needs of the community with the demands of the digital economy. By taking a proactive and informed approach, the city can ensure that it is well-positioned to accommodate the growing demand for data centers, while also protecting the interests of its residents and businesses.