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The Data Center Divide

Danville city

Anti-Data Center Policies

Danville city taxes qualifying data-center equipment, adding ongoing operating costs, and bars data-center operations in three named industrial parks. The siting restriction is limited to those parks, not citywide.

current law · County measure
The Pittsylvania County Board of Supervisors adopted a data-center-specific local tax classification and a rate of $1.62 per $100 of assessed value for computer equipment and peripherals used in a data center.Pittsylvania County Resolution Establishing the Data Center Computer Equipment and Peripherals Tax Rate (2025)

What this means

The $1.62 tax per $100 of assessed data-center equipment value adds an ongoing cost, and the meeting notes describe the rate as higher than some other localities. A fixed rate offers predictability, but the sources don’t show how it compares with Pittsylvania County’s usual tax rate, so the added burden appears minor rather than clearly substantial (approved tax rate).

People behind it

  • Proposed establishing a separate tangible personal property tax rate for data center computer equipment and peripherals.

  • Approved the $1.62-per-$100 data center tax rate unanimously.

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  • Pittsylvania County approved a separate tangible-personal-property tax rate of $1.62 per $100 of assessed value for qualifying data-center computer equipment and peripherals, adding a tax cost to operating data centers in the County. The approved $1.62-per-$100 rate

  • The RIFA resolution authorized negotiation of an LPA that would require the SAC3 project to make at least $100 billion in capital investments over 30 years and create at least 2,500 full-time-equivalent jobs over 20 years, each with annual compensation of at least $80,500, subject to cost-of-living adjustments. These are project-specific performance commitments, not requirements stated for every data center. The proposed investment and job commitments

  • The LPA terms described at the meeting included minimum annual tax payments of $16.25 million for the first 1,000 acres, plus $16,250 per acre beyond that. The minutes also state that if the company failed to meet its investment commitment or did nothing with the land, it would guarantee RIFA $48,587,500 per year; on default, the County could increase or modify the equipment tax rate. Minimum tax payments and the default rate authority

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  • The project qualifies for Enterprise Zone incentives: $1,000 per full-time job created and a waiver of land-development-use fees. The minutes describe these as nondiscretionary incentives tied to the site’s Enterprise Zone designation (job payment and fee waiver).

  • The Local Performance Agreement sets the data-center equipment tax rate at $1.62 per $100 and makes it static, not subject to accelerated depreciation, while the company meets the agreement’s requirements. The County may increase or modify the rate if the company defaults (static tax rate and conditions).

  • The site is described as having municipal water infrastructure capable of providing 7 million gallons per day and municipal sewer capacity of 4 million gallons per day, with sewer capacity to be further increased. These are stated capacities, not a guarantee of actual use (water and sewer capacity).

  • STACK is to enter an electric-service agreement with Appalachian Power, and the minutes state that STACK will pay all costs associated with providing power to the campus (power-service arrangement).

Sources

current law · County measure
Danville established a separate tax classification for computer equipment and peripherals used in qualifying data centers through its October 4, 2018 code revision.Danville City Code § 37-37, Data Centers and Data Center Tax Rate (2018)

What this means

The measure would raise the tax on qualifying data-center equipment from $0.25 to $1.20 per $100 of assessed value, adding a meaningful ongoing cost for operators (increase the Data Center Tax rate). It does not change which facilities qualify or how equipment is valued, and it does not directly restrict construction or expansion.

People behind it

  • Budget Director; council letter author

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  • The budget includes a $0.95 increase in the Data Center Tax rate.

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  • Maintains a separate tax classification for computer equipment and peripherals; comparative tax advantage is not verified.

Sources

current law · County measure
This ordinance amends Danville City Code § 37-37 by increasing the tax on qualifying data-center computer equipment and peripherals from $0.25 to $1.20 per $100 of assessed value.Danville City Ordinance 2026-05.06, Amending § 37-37 Data Center Tax Rate (2026)

What this means

The measure would raise the tax on qualifying data-center equipment from $0.25 to $1.20 per $100 of assessed value, a substantial added operating cost (tax increase). It would also bar data-center operations from three named industrial parks (location restriction), creating significant cost and siting barriers without banning data centers citywide.

People behind it

  • Moved for adoption of Ordinance No. 2026-05.06, introducing the data center tax increase for Council consideration.

  • Seconded the motion to adopt Ordinance No. 2026-05.06 as co-sponsor.

  • Submitted the council letter recommending approval of the data center tax-rate amendment in her capacity as Budget Director.

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  • Proposed, considered, and enacted the ordinance increasing the data center tax rate.

  • City Clerk responsible for issuing the public notice of the proposed data center tax increase.

Restrictions & requirementsHide restrictions & requirements3

  • Data-center operations may not be located in the Airside, Riverview, or Cyber Park Industrial Parks.

  • For purposes of the data-center tax classification, a facility must primarily provide digital-data storage, management, or processing and house equipment supporting at least 20 megawatts of electrical power capacity.

  • The tax on qualifying data-center computer equipment and peripherals increases from $0.25 to $1.20 per $100 of assessed value, effective July 1, 2026.

Sources

Specific to Danville city only.

pending · County measure
This amendment adds data centers as a permitted use in Danville City subject to data-center-specific siting and screening standards.Danville City Unified Development Code Data Center Zoning Amendment (2026)

What this means

The tax proposal would raise the rate on qualifying data-center equipment from 25 cents to $1.20 per $100 of assessed value, adding a meaningful operating cost (new rate). A separate notice proposes adding data centers to the city’s land-use code, but gives no details about new rules, so its effect is unclear.

People behind it

  • Filed code amendment request PZ26-00229 to add “Data Centers” to Chapter 41.

  • Filed special use permit application PZ26-00223 for indoor commercial recreation at Parcel 73158.

  • Filed special use permit application PZ26-00244 for adult daycare at Parcel 03430.

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  • Filed special use permit application PZ26-00251 seeking a waiver of side yard setback requirements at Parcel 72436.

Sources

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