Newport News officials are nearly ready to present their plans for data center development.

But they are still fine-tuning how they will pitch the idea to residents and the business community to minimize public pushback.

The city has been exploring options for data center development for months behind the scenes as part of a larger effort to become a regional technological hub to attract businesses, including recently purchasing properties as candidates for the sites.

Virginia has become ground zero for data centers in recent years. Northern Virginia hosts hundreds, through which more than two-thirds of internet traffic flows. Southeastern Institute of Research President John Martin told city staff at Friday’s Economic Development Authority meeting that the foundation is in place to extend that infrastructure down Interstate 95 to Hampton Roads to further position Virginia and investing localities as “the crossroads of the internet.”

“Fiber infrastructure, digital infrastructure is only going to be more valuable for a company to have as those systems become more widespread,” Martin said. “Investments in digital infrastructure are a true differentiation, differentiating economic development strategy.”

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Martin noted the city has to be intentional about its presentation to minimize community opposition, and referenced pushback on recent plans for a data center in Chesapeake due to concerns over environmental impacts.

Instead, he said the city would be better served by emphasizing the economic impact of attracting those businesses and how residents would benefit through improved internet networks. He pointed to Mesa, Arizona, as one success story. The city began bolstering its digital infrastructure in 2014, which eventually expanded to include small data centers and attracted businesses like Meta to invest in the city.

“You can’t just be reactive. You have to have your eye on the future, anything for what is better position and greater good of interest,” Martin said. “That’s where the city can make informed digital infrastructure investment decisions that benefit not just businesses, but everyone.”

Martin said now that the city has done a lot of its due diligence in researching data centers, it’s time to present plans to city leadership in January and begin engaging the community in February, according to a proposed timeline. However, he said any schedule after that is dependent on community response.

Some board members were less bullish.

One board member wants to keep the city’s economy focused on its shipyards rather than technology development, and did not support giving up valuable real estate for a data center. Another voiced skepticism over tangible improvements that previous and continued investment into digital infrastructure have created for local residents.

EDA Chair Cathy Williams said she is excited about the prospect of attracting businesses and improving internet experiences for residents, but said the city would only have space for a small data center.

“Hearing about being able to scale the size of data centers and the idea of being able to look at other aspects of the infrastructure, I think is really critical,” Williams said. “We don’t have what Mesa, Arizona, has. We don’t have a lot of land where we can go ahead and build this huge data center out there where no one’s really going to see it anyway.”

City Manager Alan Archer tried to quell concerns over potential development. He said the city’s advertising plan will include presenting a small data center with other efforts to improve the city’s digital infrastructure as a means of preparing Newport News’ businesses and residents for the future.

“It’s easy to get caught up in the pushback around energy consumption and other concerns that the average citizen has about a data center,” Archer said. “So, you’ve got to work through that in order to really understand what’s happening that’s revolutionary in the digital world. And if you’re not careful, we’ll be left behind.”

Devlin Epding, 757-510-4037, devlin.epding@virginiamedia.com

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