Caroline County
Mixed Data Center Policies
Caroline County’s enacted agreement provides project-specific tax grants for up to 15 years, with water-use and tenant limits; PIRT zoning permits data centers subject to setbacks, buffering, open-space, and noise rules.
current law · County measureEstablishes an approved economic development performance agreement between Caroline County and CADC VA-1 LLC, a CleanArc subsidiary, for development of approximately 650 acres near I-95 Exit 110.Caroline County Economic Development Performance Agreement with CleanArc and Affiliates (2025)
What this means
The agreement offers substantial financial incentives for a specific data center project: annual grants return a share of increased property-tax revenue for up to 15 years (annual grant payments). The benefits come with conditions, including no potable water for industrial cooling and limits on eligible tenants, and it does not prevent future zoning rules; the project is grandfathered under the county’s separate zoning change (grandfathered use).
People behind it
- Clayton T. Forehand
Moved to approve the Economic Development Performance Agreement with CADC VA-1 LLC.
- Reginald L. Underwood
Seconded the motion to approve the Economic Development Performance Agreement.
- CADC VA-1 LLC
Formal counterparty to the Economic Development Performance Agreement and a wholly owned subsidiary of CleanArc Data Centers Operating LLC.
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- CleanArc Data Centers Operating LLC
Parent company and developer overseeing the data center project under the Agreement.
- Caroline County Economic Development Authority
Entity designated to receive County funds and make the Agreement’s annual grant payments to CleanArc and its tenants.
Restrictions & requirementsHide restrictions & requirements4
Data centers in the M-1 Industrial District require a special-exception permit for projects moving forward after December 10, 2024. The CleanArc project is grandfathered and remains permitted by right because it had already submitted site-plan applications, obtained a zoning determination, completed substantial preparation, and made significant financial investments before the change.
Development beyond the three-building full project scope is limited to up to two additional buildings on specified adjacent parcels and requires approval by the Board of Supervisors.
Tenants in the data center buildings must be hyperscale data center users or operators, and tenants may not be tax-exempt with respect to personal property taxes.
The project may not use potable County water for industrial cooling; County water is limited to routine purposes such as washing and flushing.
Benefits & exceptionsHide benefits & exceptions5
The County will provide annual grants equal to 25% of the increased real estate and personal property tax revenue generated by each completed building for 15 years after the grant begins. If the first data hall in the first building is completed and operational by September 30, 2027, that building qualifies for grants equal to 40% of the increased tax revenue for 10 years.
The total annual grant payments are capped at 10% of CleanArc’s total taxable investments in the County, measured from June 30, 2025, through June 30, 2040, and the Agreement ends no later than December 31, 2050.
CleanArc may pursue up to two additional data center buildings on adjacent parcels, subject to approval by the Board of Supervisors.
The project’s data center use is grandfathered as a by-right use because CleanArc had submitted site-plan applications, completed substantial project work, made significant financial investments, and obtained a prior zoning determination before the County required a special exception for data centers in the M-1 district. Therefore, the project does not require rezoning or a special exception.
CleanArc will provide rights of way along the project frontage for future improvements to Ladysmith Road, including potential expansion of the bridge over I-95 and the interchange offramp.
Sources
current law · County measureEstablishes a controlled, campus-like zoning district for research and technology businesses, including data centers, education facilities, offices, utilities, research and development facilities, and technology facilities, while requiring Board of Supervisors approval for specified special uses.Caroline County Zoning Ordinance — Planned Innovation, Research and Technology Park (PIRT) District (2023)
What this means
The proposal would allow data centers as principal uses in the new PIRT district, creating a clear zoning path for them (“Data Centers”). But it also adds meaningful costs and limits, including a 100-foot setback, open-space and buffering requirements, and noise rules for operation (“minimum building setback”; “twenty percent (20%)”).
People behind it
- Caroline County Planning Staff
Proposed and administered the amendment establishing the Planned Innovation, Research and Technology Park district.
- Mr. Finchum
Planning staff member who prepared and presented the draft amendment and requested its advertisement and consideration.
- B. Leon Hughes, AICP
Director of Planning & Community Development and presenter of the amendment at the Board of Supervisors public hearing.
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- Caroline County Planning Commission
Reviewed the proposed amendment, conducted a public hearing, and recommended approval to the Board of Supervisors.
Restrictions & requirementsHide restrictions & requirements23
Data centers are allowed as a principal use only within a PIRT district, so the property must undergo a planned-development rezoning and receive Board of Supervisors approval rather than relying solely on an existing conventional zoning classification. The rezoning must include a development master plan and is subject to the planned-development review process, including a public hearing.
A PIRT application must include extensive additional materials, including documentation showing control of the property, a general development plan, utility-service evidence, proposed access and parking, buffering and landscaping concepts, mitigation of visual impacts, and architectural elevations.
PIRT properties must have adequate public water, sewer, and electric service available, or the developer must provide utility extensions on a schedule acceptable to the Board of Supervisors. The property must also be served by a road network with adequate capacity.
PIRT buildings must be set back at least 100 feet from exterior property lines and public rights-of-way, with one additional foot of setback for every foot of building height above 65 feet. Additional setbacks include 50 feet from internal roads, 25 feet from internal side and rear lot lines, and 200 feet along rivers.
At least 20 percent of a PIRT site must be preserved as natural open space, and the developer must submit an open-space preservation plan with the first site plan and update it with later site-plan submissions.
PIRT developments must provide a buffer within the required setback along exterior boundaries. The buffer must generally be at least 40 feet wide, must screen the development to a minimum height of 8 feet within three years, and requires an approved landscape plan, ongoing inspections and maintenance, and a cash bond equal to 50 percent of the landscaping estimate that cannot be released for at least two years after planting.
Construction footprints must be identified on the site plan, and no more than 50 percent of the construction footprint may be disturbed at one time without permanent vegetation. Resource Protection Areas generally may not be included in the construction footprint, Resource Management Area encroachments require additional water-quality review and mitigation, and steep or critical slopes in Resource Management Areas must be avoided where practical.
PIRT projects must minimize wildlife-habitat disturbance and provide wildlife corridors where appropriate. A natural-heritage and wildlife-management study consistent with Virginia Division of Wildlife Resources guidance must identify threatened or endangered species, wildlife travel patterns, and needed mitigation.
PIRT buildings are limited to 65 feet in height, with a possible one-foot-of-height bonus for each additional foot of setback up to 95 feet. Certain roof and utility appurtenances are excluded from the height limitation, but the height and setback rules still constrain building design.
Principal building facades must include at least three specified design elements. They must generally use at least two approved exterior materials, with those materials covering at least 50 percent of the principal facade and 25 percent of other elevations, subject to limited Board-approved alternatives.
Vehicle access to PIRT lots must be from an internal road or an upgraded terminating road designed to VDOT standards. Access to an existing state road is limited to one entrance per 1,320 feet of exterior road frontage, with a maximum of three entrances.
PIRT lighting must be shielded, downcast, and oriented inward so direct or reflected illumination does not exceed 0.5 foot-candles above background levels. Parking, access, and security lights are limited to 20 feet in height, and pedestrian lighting is limited to 12 feet.
New or relocated on-site electrical lines below 34.5 kV must be installed underground. New electrical substations must be at least 600 feet from existing residences, places of worship, schools, or certain Highway Corridor Overlay public roads.
Noise at exterior property lines may not exceed 60 decibels from 6:00 a.m. to 10:00 p.m. or 55 decibels from 10:00 p.m. to 6:00 a.m. The Board may allow an increase of up to 10 decibels only after supporting evidence demonstrates that adjacent properties will not be adversely affected.
Any generator within 1,000 feet of an existing residence, place of worship, or school must be enclosed and muffled. Construction noise must also be minimized using accepted industry practices for soft-noise warning alarms.
Rooftop and ground-level accessory equipment must generally be screened from public roads, places of worship, schools, and abutting residential properties using visually solid screens, compatible walls or panels, fencing, landscaping, or similar measures. Electric substations and certain utility facilities are exempt.
Backup energy or fuel storage is limited to facilities serving individual buildings, with liquefied fuel limited to quantities allowing no more than 120 hours of operation per building. Campus-wide centralized fuel storage or centralized backup-energy systems are prohibited, and idle data-center batteries must be kept in a separate building.
Technology facilities may not manufacture, recycle, or store batteries. Monitored batteries for data-center backup power are expressly permitted, but broader battery-related activities are excluded from the permitted technology use.
Solar photovoltaic projects with accessory battery energy storage, public electric-generation or transmission facilities, and substations are listed as special uses in PIRT and therefore require Board of Supervisors review and approval unless included in and approved with the rezoning application.
A PIRT development cannot proceed directly from rezoning approval to construction. Site-plan approval is required before building permits may be issued, and no building permit may be issued for a building or structure not shown on the approved site plan.
The first site plan must be submitted within one year after development-plan approval. The Board of Supervisors may grant extensions for good cause, but each extension may not exceed one additional year and no more than two extensions may be granted; otherwise, development-plan approval and authority to submit a site plan terminate.
For phased PIRT development, later-phase site plans cannot be approved until construction has begun on the immediately preceding phase or unit. Any change that materially alters the approved development plan, adds or removes a building, increases density, or increases floor area requires resubmission of the development plan.
Before commercial operation begins, the owner or its assigns must provide emergency-response training to the Caroline County Department of Fire and Rescue.
Benefits & exceptionsHide benefits & exceptions11
Data centers are listed as permitted principal uses in the PIRT district, allowing them to be proposed as a primary use during PIRT rezoning and site-plan review. Data Centers
Data centers are also permitted by right as a Category I use in Planned Industrial Park districts, subject to the PIRT standards. Data Center
PIRT development may proceed where public water, sewer, and electric utilities are available, or where the developer provides for extensions on a schedule acceptable to the Board of Supervisors. Applicants must provide utility-provider evidence and identify the timing of necessary upgrades. Adequate public utilities
PIRT permits public electric utility offices and distribution facilities, public water and sewer utilities, and certain data-center accessory utility facilities, including electrical substations and on-site ancillary utility facilities. Public Electric Utility Offices, Electrical sub-stations
Individual data-center buildings may have accessory backup energy or fuel storage for up to 120 hours of operation, and monitored batteries for data-center backup power are permitted. Centralized campus-wide backup systems and energy-storage facilities are excluded. 120 hours of operation
Special uses such as generation and transmission facilities, solar photovoltaic projects with accessory energy storage, and substations may be approved as part of the original PIRT zoning amendment when identified in the application or general development plan, avoiding a separate later special-use review for those included facilities. unless such use is identified in the application/GDP
PIRT applications may identify future phases in the general development plan, and a final site plan may be modified to comply with federal, state, or local requirements and site or environmental constraints so long as the changes do not materially alter the approved zoning. Where phasing is proposed
PIRT buildings may exceed the base 65-foot height by receiving one additional foot of height for each additional foot of setback, up to 95 feet. A maximum building height of 65-feet
PIRT applicants may request a noise-limit increase of up to 10 decibels if supporting evidence shows that the increase will not adversely affect neighboring properties or public welfare. request an increase of up to ten (10) decibels
If PIRT standards conflict with Chapter 68 of the Caroline County Code, the PIRT standards control, providing a district-specific operating rule for noise regulation. the provisions of this Division 7 shall control
The Board of Supervisors may approve alternative building facades, features, and materials if they remain consistent with the PIRT architectural-design requirements, allowing design flexibility for data-center buildings. the Board may approve alternative building facades
Sources
Specific to Caroline County only.
pending · County measureWould establish a tiered approval system for data centers in the M-1 Industrial District, keeping projects on parcels of at least 75 acres permitted by right while requiring a Special Exception for smaller parcels.Caroline County Zoning Ordinance — Data Centers in the M-1 Industrial District (December 10, 2024 amendment)
What this means
The proposal would keep data centers allowed by right on M-1 parcels of 75 acres or more, but smaller parcels would need special-exception approval, which can add time and uncertainty. This is a limited barrier rather than a major restriction because it applies only to smaller M-1 sites. Parcels of less than 75 acres would require approval of a Special Exception.
People behind it
- B. Leon Hughes, AICP
Director of Planning & Community Development and author of the memorandum offering the amendment for consideration.
- Caroline County Department of Planning & Community Development
County staff department that reviewed alternatives and proposed the amendment establishing a 75-acre threshold for by-right data centers in the M-1 district.
Restrictions & requirementsHide restrictions & requirements23
Caroline County staff proposed that data centers on M-1 parcels smaller than 75 acres require Special Exception approval; parcels of 75 acres or more could remain permitted by right. The Special Exception process includes a public process and allows conditions to mitigate impacts. 75-acre minimum
Caroline County's PIRT zoning standards impose development requirements for technology and data-center projects, including standards for site design, landscaping, buffers, fencing, building footprints, signage, height, access, lighting, utilities, noise, equipment screening, and emergency-response training. Development Standards Section
Essex County does not allow data centers as an allowable use. Data Centers not an allowable use
King William County does not allow data centers as an allowable use. Data Centers not an allowable use
Orange County permits data centers by right only in the I-2 district; a Special Exception is required for a facility exceeding the 100-foot height restriction. by right in I2
Louisa County permits data centers by right only within its Technology Overlay District, regardless of the underlying zoning classification. Technology overlay district only
King and Queen County requires a data center to be at least 50 feet from a residential lot or 15 feet from a commercial lot. 50 feet from a residential lot
King George County requires Special Exception approval for data centers in the C-2, I-1, and I-2 districts. allowed by SPEX
In King George County, a data center using water-based cooling must connect to a public or community water system and may not establish commercial wells for its operations. connected to public or community water system
King George County requires generators, cooling systems, storage facilities, and other operational mechanical infrastructure to be enclosed or screened; ground-mounted mechanical equipment is prohibited in front yards, and solid screening walls must use engineered sound-barrier construction. mechanical infrastructure
King George County limits generator testing to weekdays between 8:00 a.m. and 5:00 p.m. Generator testing
King George County prohibits construction of a data center until the application includes evidence that the owner has been approved by the utility company. approved by the utility company
King George County limits data-center height to the applicable zoning-district maximum and establishes a maximum floor-area ratio of 0.6. maximum height and Floor Area Ratio maximum
Fairfax County allows data centers by right or by Special Exception in specified commercial and industrial districts, but a Special Exception is required when the project cannot meet the applicable development standards. by right and by SPEX
Fairfax County limits data-center building size to 40,000 square feet in the C-3 and C-4 districts and 80,000 square feet in the I-2, I-3, and I-4 districts; larger buildings require Special Exception approval. maximum building size
Fairfax County requires data-center buildings to be at least 200 feet from an R district or developed residential property, and ground-level operational equipment to be at least 300 feet away unless separated by the principal building; lesser distances require Special Exception approval. 200 feet and 300 feet
Fairfax County requires a data-center building to be at least one mile from a Metro station entrance unless a lesser distance is approved by Special Exception. one mile
Fairfax County requires a noise study before site-plan approval and a post-construction noise study before issuance of a Nonresidential Use Permit. noise study
Prince William County requires a Special Use Permit for data centers in specified office and industrial districts outside the Data Center Opportunity Zone Overlay; by-right approval is available in those districts within the overlay. outside of the overlay district
Prince William County prohibits data centers within the Data Center Opportunity Zone Overlay when the property is zoned Agricultural, residential, mixed residential, B-2, or B-3. prohibited in the overlay district
Prince William County requires screening of mechanical equipment and substations, including 10-foot-tall opaque fencing for substations facing residentially zoned or planned property. Ten-foot-tall opaque fencing
Prince William County requires a buffer yard, generally using plantings on a berm at least six feet high with a slope no steeper than 2:1, for side or rear yards adjoining property not planned or developed for commercial or industrial use. six (6) feet
Prince William County limits data-center floor-area ratio outside the Data Center Opportunity Zone Overlay; an increase outside the overlay requires a Special Use Permit. increase in FAR
Benefits & exceptionsHide benefits & exceptions7
Data centers are permitted by right in the M-1 industrial district under the current zoning approach.
The proposed amendment would retain by-right approval for data centers on M-1 parcels of at least 75 acres, rather than requiring a special exception.
M-1 parcels smaller than 75 acres may still host data centers through the special-exception process, which allows project-specific conditions to address impacts.
The PIRT zoning framework provides development standards for data centers, including rules for site design, landscaping, buffers, building heights, utilities, noise, equipment screening, and emergency-response training.
PIRT areas are intended to be preserved for technology uses, including data centers, and development is limited to technology, research and development, data centers, higher education, and related ancillary uses.
PIRT zoning supports campus-style data-center development on large tracts, with open-space, buffering, screening, and environmental-sensitivity requirements.
Zoning approval in PIRT areas may proceed when adequate public utilities are available or when adequate provisions are made to provide utilities commensurate with the proposed development.
Sources
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