CleanArc Data Centers Invests Whopping $3 Billion in Caroline County

The largest initial business investment in Caroline County’s history has been awarded to a tech company that will soon break ground on three major data centers, state and local leaders announced Thursday.

The CleanArc Data Centers project, on the site of a former shopping center along I-95, will build three hyperscale data centers at 490,000 square feet each, using 600 MW of power, totaling over $3 billion for construction and generating 50 jobs.

The project was approved by-right by the county’s Board of Supervisors in August, a process that didn’t require public hearings like those needed when project developers seek a conditional use permit. The leaders said the area was already zoned for industrial use and the project was grandfathered into county requirements since they had already made significant investments in the project, according to a release from the county.

The approved application also left things open-ended, and the company could add two additional sites with the approval of the board of supervisors.

The amount and source of water being used to cycle through data centers is a frequent concern for localities, especially rural ones like Caroline, where many homeowners depend on well water. Per the agreement, the county won’t provide the CleanArc with potable water for the cooling of the machines inside. The county will provide water for flushing and washing at the facilities, according to the county’s statement.

CleanArc said the initial amount of water needed would be brought in from off-site and would be circulated from then on, using only the amount of water necessary for an average office building.

The locality’s leaders said the project will abide by rules so residents’ quality of life isn’t degraded.

“The Board is proud that it has led the Commonwealth in setting exacting standards for data centers in the form of regulatory guidelines,” said county supervisor Nancy Long. “These regulations include setbacks to enhance buffering from communities, noise abatement provisions, screening requirements, and the prohibition of the use of potable water for industrial cooling.”

Caroline County used incentives to draw the company to the area. Every year, 25% of the increased tax revenue generated at the parcel, which is estimated at $13 million annually, will be given back to CleanArc as part of the grant incentive program. The grant will be paid out over the course of 15 years.

“With this campus, CleanArc is ensuring every data center built in Virginia is better than the last,” Secretary of Commerce and Trade Juan Pablo Segura said in a release. “This enormous investment in Caroline County is a sign of Virginia’s growing dominance in the global tech industry.”

The company  — which has offices in Reston, Dallas, and Las Vegas — has already placed the campus in the queue with Dominion to receive power, which encouraged the county to approve the agreement, since it seemed likely the project would come to fruition.

The three campuses are expected to create 50 jobs, which are significantly higher median salaries than the average in Caroline County.

“By listening to Virginians and collaborating with industry leaders, CleanArc is ensuring this campus brings great jobs and revenue to this community and the Commonwealth while ensuring the high quality of life Virginia is known for,” Gov. Glenn Youngkin said in an announcement about the company’s planned entrance to Caroline on Thursday.

The first 300MW of power is expected to be energized no later than 2027, with additional power coming online over the next 3-5 years.

by Shannon Heckt, Virginia Mercury

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