New Report Shows Growing Positive Impact of Loudoun’s Data Centers

loudoun county data center alley

Loudoun County’s unparalleled success as a data center market continues, according to the findings of the Northern Virginia Technology Council’s report, “The Impact of Data Centers on the State and Local Economies of Virginia.”

Loudoun continues to lead the nation in key metrics, including welcoming 4.5 million square feet of new space since 2018 to the world’s largest and fastest-growing data center market.

“These data centers are the backbone of Loudoun’s economic success, providing the resources for full-day kindergarten, the strength of our public education system, and more than $1.2 billion in transit improvements,” Loudoun County Chair Phyllis J. Randall said. “Not only has the tax revenue been instrumental to the county’s rapid growth, but the high wages for employees have created powerful economic opportunities for Loudoun residents.”

In 2018, the data center industry in Northern Virginia provided more than 10,500 full-time-equivalent jobs paying more than $1.6 billion in associated wages and salaries and creating more than $3.5 billion in economic output.

“Data centers contribute more than $300 million annually in local tax revenue, which in turn saves the average Loudoun household more than $2,100 in taxes every year,” said Board of Supervisors Finance, Government Operations and Economic Development Committee Chairman Matt Letourneau (Dulles District). “Data centers are an important part of Loudoun’s secure financial footing, and also provide us with the ability to grow our technology sector with additional jobs and opportunities.”

In 2016, Northern Virginia passed New York as the U.S.’s largest data center market, with the bulk of that growth coming in Loudoun County. Looking at the top 15 markets, Northern Virginia has more data center inventory than the sixth through 15th largest markets, combined.

“The data centers themselves are only a part of our #LoudounPossible success story—they provide critical infrastructure that makes Loudoun more attractive to any business that benefits from proximity to massive storage and compute power,” Loudoun Economic Development Executive Director Buddy Rizer explained. “With the rise of artificial intelligence, machine learning and mixed reality, we expect Loudoun to remain a global destination for technology companies of all types.”

“As proud as we are of our financial contribution through tax revenues, we’re even more proud of the investments that our companies and employees have made and continue to make in our community,” said Josh Levi, President of the Data Center Coalition. “Data center employees not only work here, they live here and they give back here, supporting many different charities, schools and community groups.”

Here are some other key findings from the report:

  • In 2018, data centers were, directly and indirectly, responsible for generating $365.3 million in state and local taxes in Virginia;
  • Virginia is one of 31 states to provide a Commonwealth-level sales and use tax exemption for data centers that commit to hiring 50+ jobs with six-figure salaries. In 2019, Virginia’s Joint Legislative Audit and Review Commission found that 90 percent of the investment made by companies that received the exemption would have gone elsewhere without the incentive;
  • In 2018, the data center industry ecosystem in Northern Virginia provided approximately 28,196 full-time-equivalent jobs, $2.6 billion in associated wages and salaries, and $6.9 billion in economic output;
  • In 2018, the data center industry in Virginia provided approximately 14,644 full-time-equivalent jobs, $1.9 billion in associated wages and salaries, and $4.5 billion in economic output;
  • In 2018, the Data Center Industry ecosystem in Virginia provided approximately 45,290 full-time-equivalent jobs, $3.5 billion in associated wages and salaries, and $10.1 billion in economic output.

For more information on the study, or on Loudoun’s technology clusters, visit biz.loudoun.gov.

 

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