Connect with us

State News

Youngkin Touts Henrico Firm Powering Virginia’s Data Center Boom

Published

on

As data centers continue to sprawl across Virginia — with hundreds already built and many more planned nationwide — the demand for the equipment powering these massive digital hubs is surging. Gov. Glenn Youngkin on Monday touted a Henrico company that can rapidly deploy hyperscale, AI, and colocation data center components.

Gov. Glenn Youngkin views data center infrastructure designed by Hyper. (Photo by Shannon Heckt/Virginia Mercury)

Hyper, the Henrico-based manufacturer, cut the ribbon on its new headquarters, where engineers design electrical power distribution and cooling systems that regulate temperature and supply electricity to the racks housing the critical servers.

The company’s technology uses a smaller, more efficient design than traditional cooling infrastructure and is engineered to to minimize power loss throughout a data center’s system. It also touts its extensive U.S. manufacturing footprint as a way to ease supply chain challenges.

“(We) build it with the highest efficiencies of steel, copper, aluminum, so that there’s less loss through their distribution system, allowing more of the energy to go to the actual chips that do the work,” said Dennis Strieter, co-founder of Hyper. “Cooling’s the same way. We want to match the cooling with the actual output of the heat of the chip, and we want those tied together through sensors so that we’re not overcooling the space and we’re not undercooling the space.”

Hyper’s model is to manufacture parts in 18 states across the country, ensuring components reach data centers quickly as construction booms nationwide. The company currently employs 40 people at its Henrico headquarters.

“We spend a lot of time focusing on on-time delivery, because right now, in the market, that’s what’s holding everybody up — they’re not getting the equipment to open the buildings on the day they promised their customer,” Strieter said. ”We’ve had to rethink the way that we designed products.”.

Data centers consume vast amounts of energy to cool the rows of server racks inside their buildings. While Hyper’s components are smaller and more efficient, it’s up to the data centers themselves to determine how to further reduce energy use as rack technology evolves.

With Dominion Energy currently awaiting State Corporation Commission approval for a new rate class for data centers, lawmakers are examining how to expand Virginia’s energy capacity to sustain the fast-growing industry.

“We’ve got a lot of work to do on the policy front to make sure that data centers are able to take on their own power generation and are willing and able to take on the added cost of the infrastructure necessary for the big builds,” Youngkin said Monday. “We want more data centers here. It’s a big driver for our economic future and for our national security.”

On the energy side, some officials worry that not all proposed data centers will ultimately be built, potentially leaving the state with excess energy projects already in the pipeline.

When asked whether there’s a possibility of an “AI bubble,” the governor said he remains encouraged by the strong demand for new data centers amid the rapid expansion of artificial intelligence across industries. He added that companies like Hyper will continue to play a vital role for decades to come.

“Huge supply with no demand, that’s what causes a crash,” Youngkin said. “And in this case, there is a giant demand, a giant growth, and it’s being met with, of course, investment.”

by Shannon Heckt, Virginia Mercury


Virginia Mercury is part of States Newsroom, a nonprofit news network supported by grants and a coalition of donors as a 501c(3) public charity. Virginia Mercury maintains editorial independence. Contact Editor Samantha Willis for questions: info@virginiamercury.com.

Front Royal, VA
66°
Fair
6:08 am8:29 pm EDT
Feels like: 66°F
Wind: 1mph NNE
Humidity: 98%
Pressure: 29.94"Hg
UV index: 0
MonTueWed
88°F / 68°F
81°F / 68°F
84°F / 66°F
Local News32 minutes ago

Santa Brings Christmas Cheer Early During Christmas in July at Spelunker’s

Food2 hours ago

Chicken and Zucchini Skewers Make an Easy Summer Meal

Crime/Court23 hours ago

Virginia State Police Seize Eight Firearms and More Than $357,000 in Drugs

National News24 hours ago

Federal judge in Virginia says certain abortion drug restrictions are unlawful

State News24 hours ago

National Landlord with Property in Virginia Accused of Housing Discrimination

State News24 hours ago

DEQ Asks Virginians How to Best Engage Environmental Justice Communities During Permitting Process

State News1 day ago

Virginia Transportation Board OKs Stricter Oversight for Economic Development Fund

Agriculture1 day ago

How Farmers Create Habitats for Wildlife

Opinion2 days ago

In Enthusiastic Agreement with Supervisor Jamieson

National News2 days ago

States Move to Limit Classroom Screen Time

State News2 days ago

Even Without a New Map, Buttigieg Says Virginia Dems Can Win With Focus on Healthcare, Affordability

State News2 days ago

Virginia Hospitals Predict $31B Reduction in State’s Medicaid Funding If Proposed CMS Rule Passes 

Business Growth Series2 days ago

Business Growth Series: Trying to Do Everything Yourself Is Limiting Your Growth

Travel2 days ago

Agritourism Offers a Fresh Way to Enjoy Summer Close to Home

State News3 days ago

Congressional Report Says Virginians Have Paid $1.8 Billion More for Gas Since Iran War Started

State News3 days ago

UVA Study Shows How Housing Affordability Policy, Civic Engagement and Voter Turnout Connect

Historically Speaking3 days ago

More Than a Futbol Rivalry

Scott's Turn3 days ago

Scott’s Turn: A Conversation About Building Stronger Communities

Common Ground with Coolidge3 days ago

The Power of Words: A Lesson From Calvin Coolidge

Community Events3 days ago

Excel to Perform July 23 at Gazebo Gatherings

Obituaries3 days ago

Michael Ray Santmyers (1971 -2026)

Health3 days ago

Oatmeal: Why Some Swear by It and Some Swear at It

Community Events3 days ago

This Week’s Showtimes at Royal Cinemas as of July 24th

Obituaries3 days ago

Marcelene Fay “Marci” Pinion (1958 – 2026)

Obituaries4 days ago

Buford “Bo” Lynn Kibler (1942 – 2026)