Google announces $9 billion investment in Virginia, including a Chesterfield data center

For years it has been known as Project Peanut, but on Wednesday, Chesterfield’s newest business development was unmasked.

Google announced a $9 billion investment in the state at Brightpoint Community College, formerly known as John Tyler Community College.

Governor Glenn Youngkin was joined by Google President Ruth Porat to announce several initiatives, including a new data center at Meadowville Technology Park.

Virginia is home to the most data centers in the United States, and while they have become a contentious topic in recent years, Chesterfield rolled out the red carpet for its newest project.

Neighboring Henrico recently voted to slow down the approval process for data centers, and increased the tax rate on existing data centers from 40 cents per $100 of assessed value to $2.60 per $100 of assessed value.

Chesterfield’s rate stands at an attractive-to-businesses 24 cents per $100 of assessed value, and the county has promised to hold that rate through rebates during the 30-year duration of the Project Peanut contract, though a county spokesperson noted that there is no intent at the moment to raise the rate.

Amber Tillman, Head of Data Center Public Affairs for Google, would not say the size or wattage of the new data center, citing competitive reasons. While the company did not provide a concrete construction timeline, a spokeswoman for the company said that its projects typically take between 18 and 24 months to develop. 

A 2024 study by JLARC, the state legislature’s research arm, found that if demand for data centers continues at its current pace, the state’s energy needs could double within the next 10 years.

Wednesday’s announcement also includes funding for education opportunities for Virginia-based students as part of a workforce and development initiative in the state.

The investment also launched the Google AI for Education Accelerator, a program that provides students with free AI tools trainings and Google career certificates. The program’s first cohort includes University of Virginia, Old Dominion, Northern Virginia Community College, and Brightpoint. It will also provide all Virginia-based students with a free Google AI Pro Plan. 

Nikki Hicks, a professor at Brightpoint who teaches business and marketing, started implementing Google courses into her curriculum several years ago when she couldn’t find a textbook she liked for her classes. Since then, she has noticed her students are able to use their Google certifications to help get jobs. 

“They get incentive with me, but the real incentive is being able to include it on their resume, and have that micro credential when you see Google on your resume,” Hicks said.

When asked by Youngkin what she’d like to see more of from the company, Hicks stressed the importance of continuously providing free and low-cost programming, something that as of now with Google certification courses is only guaranteed until 2027, although Hicks said the company typically renews the availability annually. 

Pushback against data centers

When asked about recent increased objection to large-scale data centers in Virginia, Youngkin said he thinks regulation shouldn’t come from the state.

“Data centers in communities should be decided by communities, not at the state level,” he said. “And again, I worry that the progressive left side of the political spectrum wants to dip in from Richmond on what businesses can go where. They want to try to restrict data centers across the whole state. Each county or jurisdiction should be able to make that decision. In this case, I'm a big advocate for data centers.”

Virginia Data Center Reform Coalition is one of the new community organizations emerging from mounting opposition to the data centers. Chris Miller, president of Piedmont Environmental Council, one of the main organizations comprising the group, sees this as a pivotal time for conversations around transparency when it comes to data centers in Virginia.

“[Data centers are] breaking our systems, they're breaking our energy system. They're breaking our water systems, and that puts all of us at risk,” Miller said. “It puts us at risk in terms of impacts on communities and the environment, but it also puts us at risk because of the rapid increase in utility rates.”

Miller referenced Loudoun County, one of the sites that is experiencing an expansion as part of Google’s $9 billion investment, as an example of a locality providing tax breaks to companies, then leaving local residents with higher bills.

“Effectively, it's just a new tax,” Miller said. “It's a tax for Google, it's a tax for Amazon.” 

Miller said a major concern is lack of transparency or information on the new projects coming to Virginia. The coalition’s database is currently tracking 450 applications to data centers, a number he said the state has told the group they do not have access to.

“The timing of this news in Chesterfield corresponds with an increasing awareness around the state of what you know, what Virginia's taxpayers, or rate payers, are being asked to subsidize,” Miller said.

“After the excitement dies down about Google’s announcement of the development of a new data center near Richmond, as well as the expansion of its existing data centers, local officials need to face reality and insist on transparency with regard to the company’s more precise plans.”

Why Google chose Virginia

Google’s project will expand what Tillman called “the cloud region,” a phrase that describes Virginia’s swath of data centers that serve small, medium and large businesses and their data storage as well as the data storage and AI for public sector projects such as Google’s “AI for Social Good.”

The project has been in the works since at least 2020, when the land for the development was purchased.

“Virginia and Chesterfield have truly been at the forefront of change throughout history, and we're really excited to ensure that Virginia continues to lead in this new era where they are as the author of America's Declaration of Independence and Virginia's second governor, Thomas Jefferson, wrote, ‘Progress would be possible with the general spread of the light of science,’” Porat said.

Youngkin spoke on the importance of investment in “next generation power” through Google’s collaboration with Commonwealth Fusion Systems. He sees the company’s investment in the state as an investment in the Virginia workforce and economy.

“Too often, as the governor has said to me, when people think of the digital economy, they only think of places like Northern Virginia or other tech hubs. And so today, all of us are demonstrating that cutting-edge technology comprises every corner of the commonwealth and every corner of the country,” Porat said.

Brightpoint President Bill Fiege expressed enthusiasm for the project, and the investment in education.

“One thing at Brightpoint you may not know is our nickname is we're the Trailblazers, and so we look forward to blazing the trail with Google for this AI education accelerator, and blazing the trail with the Commonwealth to make sure we're providing the education to meet our community needs,” Fiege said.

“This is a commitment to opportunity in Virginia, and then this is a commitment to the best workforce in America, right here in the Commonwealth of Virginia,” Youngkin said. “To make sure that everyone has the tools and capabilities and skills to fully participate in this rip-roaring economy that we are seeing in the Commonwealth of Virginia. Thank you for believing in our future, and thank you for helping Virginians see that future come alive.” 

Contact reporting intern Juliana Vandermark at jvandermark@richmonder.org.