DANVILLE, Va. – Danville leaders have taken another step toward expanding economic development, unanimously voting to amend the city’s zoning code to allow data centers within city limits.
City Manager Ken Larking said the issue surfaced after a recent update to the code revealed that data centers were not clearly defined or permitted.
“When the code went into effect, it was discovered that data centers aren’t really allowed in city limits, based on the criteria — they aren’t really defined,” Larking said.
The amendment establishes specific requirements for where data centers can be built. Facilities must be located at least 500 feet from residential areas, sit on parcels larger than 150 acres, cannot be built in industrial parks and include buffers such as trees or vegetation to separate them from roads and nearby buildings.
The council also heard the first reading of a proposed tax increase on data centers. The measure would raise the tax rate by 95 cents from $0.25 to $1.20 for every $100 of assessed value on data center equipment — a strategy that has generated millions of dollars in revenue in some localities.
Officials noted that while data centers can bring economic benefits, they often require significant resources and may not create large numbers of jobs.
Danville resident Frank Leist said he supports bringing data centers to the area, calling them a potential long-term investment.
“I am very big on data centers because I believe first mover will receive the biggest benefits and keep jobs here,” Leist said.
However, Leist expressed concern that raising the tax rate too high could make Danville less competitive in attracting companies.
“If we keep it below what other counties are, then we can attract the businesses here,” he said. “Then, in a couple of years, we can readjust and figure out whether we need to raise that tax rate.”
While the zoning change clears the way for future data center development, the council is expected to take up the proposed tax rate increase at a later date.