King George County
Mixed Data Center Policies
King George County requires water-cooled data centers to connect to public or community water, screen equipment, and obtain special approval in listed districts.
Incentives
Tax benefits
Qualifying data-center computer equipment receives a nominal $1.25 tax rate with accelerated depreciation, producing a first-year effective rate of $0.625.
current law · County measureDirects King George County staff to review height requirements for data center development and industrial uses within the county (data center development and industrial uses).King George County Resolution R-03-25 — Review of Data Center Height Requirements
What this means
The measure directs staff to review height requirements for industrial uses, but does not itself change the rules for building or operating data centers (review the height requirements). A separate data-center-specific version records that no action was taken, so these sources show no meaningful new restriction or benefit.
Restrictions & requirementsHide restrictions & requirements1
Directs county staff to review the height requirements applicable to industrial uses, which includes data-center development, potentially delaying approval or expansion while the review is conducted.
Benefits & exceptionsHide benefits & exceptions1
Directs county staff to review the height requirements for industrial uses, including data-center development, and consider whether revisions are warranted. The resolution itself does not change the height limits or guarantee approval.
Sources
current law · County measureVerified section correction: King George County's adopted data-center use standards are Section 7-6-5 — Data Centers, rather than the earlier section numbers in this row's title.King George County Zoning and Subdivision Ordinance §§ 1.9.3, 4.17, 7-6-4, and 11-4-5 — Data Center Standards
What this means
The rules add meaningful costs and design limits: data centers using water-based cooling must connect to a public or community water system, and mechanical equipment must be enclosed and screened (data center standards). Special-exception approval is also required in listed zoning districts, but the sources do not show a ban on data centers countywide. The ordinance was adopted December 19, 2023.
People behind it
- B. Leon Hughes
As Director of Planning & Community Development, he authored the memo in which staff proposed the M-1 data-center zoning amendment for consideration.
Restrictions & requirementsHide restrictions & requirements9
Data centers are allowed by special exception in the C2, I1, and I2 zoning districts, adding a discretionary approval requirement. The special-exception requirement
If water-based cooling is used, the data center must connect to a public or community water system; commercial wells may not be established for data center operations. Water-system and well restrictions
Power generators, cooling systems, storage, and other mechanical infrastructure must be enclosed and screened from adjacent streets, uses, and buildings; solid screening walls must include engineered sound barriers. Mechanical infrastructure screening
Ground-mounted mechanical equipment is prohibited in front yards. Front-yard equipment prohibition
Generator testing is limited to weekdays from 8:00 a.m. to 5:00 p.m. Generator testing hours
Before a data center is built, the application must provide evidence that the owner has been approved by the utility company. Utility-company approval requirement
Facades facing existing or planned public roads or certain residential properties must have differentiated surfaces, consistent design, and fenestration. Principal-facade requirements
Building height is limited by the underlying zoning district and may not be increased because of firefighting-equipment limitations. Height limit
The maximum permitted floor-area ratio is 0.6. Floor-area-ratio limit
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Data centers may seek approval by special exception in the C2, I1, and I2 districts, providing a permitting pathway in those districts subject to review. Allowed by special exception.
The ordinance allows a maximum floor area ratio of 0.6 for data centers, subject to the other applicable standards. The allowed Floor Area Ratio maximum is 0.6.
For transitional buffers, the ordinance allows Type C buffers and Alternative Buffer Berms, giving applicants those options for meeting buffer requirements. Transitional buffers allowed include Type C and Alternative Buffer Berms.
Sources
current law · County measureEstablishes a separate local tax classification for qualifying data-center computers and peripherals, with a tax rate of $1.25 per $100 of assessed value.King George County Ordinance and Resolution of June 18, 2019 — Data Center Computer Equipment Tax Classification and Rate
What this means
The agreement offers major financial incentives, including grants tied to new tax revenue and a reduced data-center equipment tax rate with accelerated depreciation (annual grants; tax rate and depreciation schedule). It also promises fast-track reviews, though the company must cover certain third-party costs; overall, the conditions do not outweigh the benefits.
People behind it
- Amazon Data Services, Inc.
Proposed the data-center project and is a party to the Economic Development Local Performance Agreement.
- King George County, Virginia
Proposed and entered into the performance agreement, provides the local economic-development incentives, and administers related county commitments.
- Economic Development Authority of King George County
Entered into the performance agreement and administers and pays the Annual Infrastructure Grants, Investment Performance Grants, and related tax-package grants.
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The County’s fast-track review and permitting process is available only if Amazon enters into a cost-reimbursement agreement covering the County’s third-party consulting and inspection fees, creating an additional project cost. the fast-track process will only apply if there is a cost reimbursement agreement
Development of the project’s public water and sewer infrastructure is tied to a separately negotiated Water Services Agreement, which must include Amazon’s commitment to provide the County or Service Authority with 600,000 gallons per day of raw surface water at no charge. The Water Services Agreement will include a commitment by the Company to provide 600,000 gallons per day
The County is not obligated to approve land-use actions for the project; the agreement expressly does not bind the County or Board of Supervisors to approve permits, plans, rezonings, or conditional-use permits. nothing herein will require or otherwise bind the County
Amazon remains subject to all applicable laws and County laws governing the project, and the agreement does not exempt it from those requirements. The Company is subject to all applicable laws pertinent to the Project
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Annual infrastructure grants equal to 60% of the project's incremental real and personal property tax revenue, subject to a total maximum of the lesser of 10% of qualifying infrastructure costs or $36,636,000. The grants are calculated at 60% of Incremental Tax Revenue
Investment performance grants become available after the company reaches at least $6 billion in capital investment and receives the maximum infrastructure-cost reimbursement. The grants equal 10%, 15%, or 20% of incremental tax revenue depending on whether total investment is $6–$10 billion, over $10–$15 billion, or over $15 billion, respectively. Investment Performance Grants
The county establishes a favorable computer-equipment tax package: a $1.25 tax rate per $100 of assessed value and accelerated depreciation from 50% of original cost in year one to 5% from year five onward. established a tax rate for Computer Equipment of $1.25 per $100 of assessed value
If the county raises the computer-equipment tax rate or changes the depreciation schedule in a way that increases the company's taxes, the EDA must pay an additional annual grant equal to the resulting excess tax, subject to annual appropriation. This protection ends after June 30, 2040 if capital investment has not reached $6 billion, except for amounts already due. any taxes on Computer Equipment owed ... above the taxes that would have been owed ... will be payable as an additional grant
The county must use best efforts to implement fast-track plan review, permitting, and construction processes for applicable data-center development, conditioned on the company reimbursing related third-party consulting or inspection costs under a cost-reimbursement agreement. Implement a fast-track plan review, permitting, and construction process
The county commits to timely construction inspections, additional coordination with company personnel when necessary, and coordination with state and federal regulators during project review, permitting, and construction. Perform applicable permit inspections ... in a timely manner
The county must provide a single point of contact to coordinate activities, resolve potential issues, and facilitate project interactions. Utilize a single point of contact
The county must assist, within its authority, with completing public water and sewer infrastructure under a Water Services Agreement. That agreement must include the company's commitment to provide 600,000 gallons per day of raw surface water to the county or Service Authority at no charge. 600,000 gallons per day of raw surface water at no charge
The county's infrastructure and investment grants may count toward the required local match for Virginia's Cloud Computing Cluster Infrastructure Grant Fund. payments through the Annual Infrastructure Grants and the Investment Performance Grants will contribute towards the Local Match
If a force majeure event, including insufficient or unavailable project utilities, delays performance, the affected party receives an equivalent extension of time, up to an aggregate maximum of three years. including insufficient or unavailable utilities for the Project
The company may assign the agreement or amounts due under it to an affiliate or in connection with a merger, reorganization, sale of substantially all assets, or similar transaction, without the otherwise required consent of the other parties. the Company may assign this Agreement ... to any affiliate
Annual infrastructure and investment performance grants that are due, owing, and unpaid when the agreement terminates survive termination, subject to the agreement's appropriation requirement. obligation to pay ... grants that are due, owing and unpaid ... will survive
Sources
current law · County project: Dahlgren Innovation Hub site, approximately 497 acres at Route 301 and Washington Mill Road (Tax Parcels 17-24, 17-27, 17-72, and 17-27A)Concerns a proposed special exception for Dahlgren Innovation Hub, LLC to construct a data center and accessory uses on approximately 497 acres, including taller buildings and walls or fences up to 50 feet high to screen outdoor equipment.King George County Ordinance O-11-25 — Dahlgren Innovation Hub Special Exception
What this means
The measure would allow a data center and accessory uses on about 497 acres, including buildings and screening walls taller than ordinary zoning limits, making this project easier to build. The benefit is limited to this specific site and remains tied to the related rezoning, rather than creating a general benefit for data centers across the county.
People behind it
- Dahlgren Innovation Hub, LLC
Applicant that requested the special exception to construct a data center and accessory uses on approximately 497 acres and seek related height allowances. Special Exception application from Dahlgren Innovation Hub
Restrictions & requirementsHide restrictions & requirements2
Constructing the data center required a special exception permit; the Board considered the application to authorize the data center and accessory uses on approximately 497 acres. Special Exception application
Approval of the special exception was contingent on approval of the related rezoning application. Approval was contingent on rezoning
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Authorizes a data center and accessory uses on approximately 497 acres; approval is contingent on approval of the related rezoning application. data center and accessory uses on approximately 497 acres
Allows building heights beyond the zoning limits, including heights greater than 50 feet. building heights greater than 50 feet
Allows walls and fences up to 50 feet high for screening outdoor equipment. walls and fences up to 50 feet in height to screen outdoor equipment
Sources
Specific to King George County only.
failed · County project: Amazon data center project sites in the County, including the Birchwood and surrounding Sealston-area propertiesThe proposed agreement would have supported AWS data-center development in King George County through infrastructure and investment-performance grants funded from incremental project tax revenue, subject to annual appropriations.King George County–AWS Economic Development Local Performance Agreement
What this means
The agreement would offer AWS large grants tied to increased tax revenue, a favorable data-center equipment tax arrangement, and faster permit reviews, making it a strong incentive to build and expand. The County would retain discretion over land-use decisions, so the agreement would not guarantee approvals; this score assesses its terms as proposed, though the Board later revoked its approval (incentives and fast-track review; approval revoked).
People behind it
- Amazon Data Services, Inc.
Company and project proponent; party to the Economic Development Local Performance Agreement.
- King George County, Virginia
Local-government party responsible for providing the economic-development incentives and permitting and utility commitments.
- Economic Development Authority of King George County
Party responsible for administering and paying the Annual Infrastructure Grants, Investment Performance Grants, and related grants.
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- King George County Board of Supervisors
Governing body that approved the Amazon performance agreement and later reconsidered and revoked that approval.
- Ann Cupka
Moved adoption of the Amazon performance agreement on December 19, 2023.
- Jeffrey Stonehill
Seconded the motion to adopt the Amazon performance agreement on December 19, 2023.
- Cathy Binder
Moved reconsideration of the Board’s approval of the Amazon performance agreement on January 2, 2024.
- David Sullins
Seconded the motion to reconsider the Amazon performance agreement on January 2, 2024.
Restrictions & requirementsHide restrictions & requirements5
Fast-track review is available only if Amazon enters a cost-reimbursement agreement covering the County’s related third-party consulting and inspection fees, creating an additional permitting cost.
Data-center development remains subject to all applicable County laws, permits, inspections, and regulatory requirements; the agreement does not exempt Amazon from those requirements.
The agreement does not bind the County or Board of Supervisors to approve any permit, plan, rezoning, conditional-use permit, or other land-use decision, so those approvals remain discretionary.
Amazon must enter negotiations for a Water Services Agreement and commit to provide the County or Service Authority 600,000 gallons per day of raw surface water at no charge, with related water and wastewater infrastructure obligations addressed in that agreement.
Amazon must provide annual reports and supporting documentation on capital investment, infrastructure costs, jobs, and related tax information, creating continuing administrative and reporting requirements.
Benefits & exceptionsHide benefits & exceptions12
Annual infrastructure grants equal to 60% of incremental real- and personal-property tax revenue may be paid to Amazon to reimburse infrastructure costs. The total is capped at the lesser of 10% of qualifying infrastructure costs through June 30, 2040, or $36.636 million, and payments require annual appropriation, tax payment, and required reporting. 60% of Incremental Tax Revenue
If Amazon reaches at least $6 billion in capital investment and has received the maximum infrastructure-cost reimbursement, it may receive annual investment-performance grants through the agreement term. The grants equal 10% of incremental tax revenue for investments from $6 billion to $10 billion, 15% for more than $10 billion to $15 billion, and 20% above $15 billion. Investment Performance Grants
The County establishes a separate data-center computer-equipment tax classification with a rate of $1.25 per $100 of assessed value and an accelerated depreciation schedule of 50%, 35%, 20%, 10%, and 5% over five years and thereafter. tax rate of $1.25 per $100
If the County raises the computer-equipment tax rate above $1.25 per $100 or changes the depreciation schedule in a way that increases Amazon's taxes, the EDA must provide an additional annual grant equal to the resulting excess tax, subject to appropriation. additional grant
The County must use best efforts to implement fast-track plan review, permitting, and construction processes for applicable data-center development, provided Amazon reimburses related third-party consulting or inspection costs under a cost-reimbursement agreement. Implement a fast-track plan review
The County commits to timely construction inspections and to coordinating with state and federal regulators, including providing timely responses during their review, permitting, and construction processes. Perform applicable permit inspections
The County must designate a single point of contact to coordinate activities, resolve potential issues, and facilitate interactions concerning the project. single point of contact
The County must assist Amazon with completing public water and sewer infrastructure under a Water Services Agreement. That agreement must include Amazon's commitment to provide the County or Service Authority 600,000 gallons per day of raw surface water at no charge, with the parties able to negotiate additional water. 600,000 gallons per day
The County and Amazon intend to participate in Virginia's Cloud Computing Cluster Infrastructure Grant Fund, with the County's infrastructure and investment-performance payments contributing toward the required local match for state grants. contribute towards the Local Match
Future state legislative or judicial changes that materially reduce the County's ability to tax computer equipment suspend the investment-performance-grant obligations during the reduced-revenue period, while allowing the parties to negotiate mitigation commitments at the County's request. obligations ... will be suspended
The agreement provides broad force-majeure protection: qualifying events outside a party's reasonable control extend performance deadlines, although the aggregate extension is limited to three years and does not excuse payments already due. aggregate extension
Amazon may assign the agreement or funds due under it to an affiliate or in connection with a merger, reorganization, sale of substantially all assets, or similar transaction, subject to the agreement's assignment rules. may assign this Agreement
Sources
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