Why Are Companies Building Data Centers in Culpeper?
An excellent fiber-optic infrastructure and the location of several major electric utilities are key reasons why millions are being invested in Central Virginia.
Northern Virginia is the data center capital of the world, and now those multimillion dollar investments are spreading into Central Virginia, where companies are building data centers in Culpeper.
Culpeper, located in the heart of the Northern Virginia technology corridor, boasts an excellent fiber optic infrastructure and is home to several major electric utilities – key factors making the city and county attractive locations for data center development.
“Culpeper is definitely drawing attention from the data center industry,” says Bryan Rothamel, director of Culpeper County Economic Development. “We’re seeing a significant uptick in data centers moving to Culpeper County. Over 6 million square feet of data centers have recently been announced for this area.”
The construction of such large facilities creates hundreds of jobs. “That’s one of the advantages to our community,” Rothamel says. “These projects take years to build and will employ hundreds of construction personnel per project.”
Stunning Growth
Some 17 buildings housing data centers are planned on two campuses on the town of Culpeper’s border. One of the campuses, located at McDevitt Drive and East Chandler Street, is expected to create 450 full-time jobs – 50 positions per each of the nine data centers.
Data Centers in Culpeper Generate Revenue
Once in operation, the centers generate significant tax revenues for local communities. Just one of the multiple projects is expected to generate $100 million in annual local taxes by year four of operation.
Equinix Culpeper Data Center already has a strong presence in the community. Within the last few years, CloudHQ paid $12 million for 100 acres along the McDevitt Drive Technology Zone. CloudHQ is based in Washington, D.C., with locations around the globe, and specializes in the design, development and operation of best-in-class, carrier-neutral, hyper-scale data center facilities.
Amazon Web Services plans to invest $500 million in developing land in the eastern portion of Culpeper County. Amazon will construct two data center buildings totaling more than 400,000 square feet on approximately 230 acres.
The growth in data centers has helped push Culpeper’s development projects to an all-time high. From 2010 to 2020, the county’s population grew by more than 12% and is expected to grow by more than 20% over the next decade. Culpeper County’s 2023-25 Economic Development Strategic Plan encourages data center development in designated areas as well as other investments in manufacturing and skill development for employees.
Workforce Development
“Culpeper has a labor force ready to work with its hands,” Rothamel says.
Preparing the workforce begins early. The Culpeper Technical Education Center is a public school that provides career and technical education (CTE) to high school students. The center offers courses in various fields, including carpentry, cybersecurity, drafting/CADD, electricity, emergency medical technician, HVAC and R, industrial maintenance technology, masonry and plumbing. This $17 million workforce facility investment will help students graduate with the knowledge and skills necessary to excel in various industries.
Rothamel says local businesses are “blown away by the overall program” at Culpepper Technical Education Center.
“Together, with our many community partners, our students have mentors, are exposed to career exploration opportunities, and are engaged in high-quality, work-based learning opportunities such as cooperative education, internships and apprenticeships,” says Randi Richards-Lutz, CTE director of Culpeper County Public Schools.
One theme embraced by the school is “Connect to Your Future,” where students participate in a Skill Showcase that is held in advance of a job fair. Culpeper Technical Education Center also hosts a CTE Signing Day, where newly employed students and their families, teachers and mentors can celebrate.
“We are very grateful for the synergy created in Culpeper for our students and community,” says Richards-Lutz.
Location a Key Factor in Defense, Security Jobs
Central Virginia has a robust defense and security sector, thanks in large part to the region’s proximity to the national defense industry centered in Washington, D.C. Central Virginia itself is home to major entities like the U.S. Defense Intelligence Agency, the National Ground Intelligence Center and the National Geospatial- Intelligence Agency.
According to a 2023 economic impact report commissioned by the University of Virginia Weldon Cooper Center, the defense industry has a substantial economic impact on the region, accounting for 7,347 jobs and $618 million in labor income. In Charlottesville alone, nearly 6% of the workforce and 7.5% of labor income is related to the defense sector.
As for private companies, there are several top choices throughout Central Virginia where employees can work, including at Aerojet Rocketdyne, General Dynamics, EURO-COMPOSITES and Northrop Grumman Corp. In Charlottesville, intelligence-gathering contractors like Battelle, Booz Allen Hamilton, CACI, MITRE, and SRC operate at North Fork, a UVA Discovery Park.
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