Newport News leaders highlighted 12 sites throughout the city they plan to target with major projects in the coming years at Thursday’s inaugural Economic Development, Growth and Expansion Summit.

One could be used to bring the first data center to the city.

Newport News’ Economic Development Authority recently purchased three properties consisting of nearly 20 acres along Dozier Road that are undeveloped, according to Assistant Director of Development Derek Perry. Those properties are already zoned for heavy industrial, and are being primed to support operations at Fort Eustis through a range of uses, including energy storage, power generation and data processing.

Data centers are sites that store equipment and servers necessary to process and distribute data. Recent advancements in computing and artificial intelligence have increased demand for them across the country.

The commonwealth is home to 35% of data centers worldwide, according to the Virginia Economic Development Partnership. Although some small-scale data centers are scattered across Hampton Roads, recent efforts to add large-scale data centers in the region have been shot down after residents voiced concern over potential air or groundwater pollution from the sites.

Gov. Glenn Youngkin has been bullish on data centers in Virginia, and said last year the roughly 300 in the state have brought in more than $1 billion in state revenue.

Despite their economic benefit, data centers require a massive amount of power to operate and consume the same amount of water as hundreds of households per day to stay cool. Critics also have called the use of generators and potential air quality impacts into question, along with noise pollution from the facilities’ constant operation.

Hampton Roads Alliance Chief Business Development Officer Jared Chalk echoed Youngkin’s sentiment at the summit, saying investments into data centers will support the city’s other investments into military and technological capabilities.

“We’re the data center capital of the world, and AI is fueling that demand for energy,” Chalk said. “Metros that are going to win over the next decade — because of this larger influence of the federal government — are military metros.”

Mayor Phillip Jones said after the event the only place in the city it would be possible to build a data center would be in an area marked for heavy industrial, and this site, adjacent to the existing Oakland Industrial Park and near a railroad, is a perfect location for one.

“It’s away from the population on the back side of Fort Eusits, which already is a military center, so it seems to be a really good spot,” Jones said. “Most importantly, it brings in a lot of tax revenue. It encourages jobs, and with that tax revenue, we can lower taxes for the entire city.”

Jones didn’t comment on potential environmental concerns of having a data center in Newport News, but added the city is in the “very initial steps” toward making that possibility a reality.

“We’ll see what happens, but I’m open to hearing all of our pitches,” Jones said.

In addition to the potential data center site, the other target sites are scattered across the city, including Denbigh, Newport News/Williamsburg Airport, greater Oyster Point, greater Hilton, downtown and southeast. Several of them are aimed at creating new housing or food and entertainment opportunities in the city, especially around downtown, Denbigh and greater Oyster Point.

The two-day event was designed to connect business developers to city planners as Newport News officials try and position the city as a future hub for science and technology research through resources like Jefferson Lab, as well as manufacturing for the military with its shipbuilding. City Manager Alan Archer said during the event the 12 projects will further support the city’s long-term goals by acting as catalysts for new business investments.

“When these sites are developed, the impact will ripple outward, creating jobs, strengthening neighborhoods and empowering families to build wealth right here in Newport News,” Archer said. “We strive to move projects forward with efficiency and without unnecessary delays.”

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

https://www.dailypress.com/2025/10/04/newport-news-data-center/