$100bn data center campus by Stack Infrastructure in Pittsylvania is making headway as a finalized budget comes through. The firm noted its advancements after the General Assembly finalized a budget earlier this week that kept stat tax exemptions in place. The tax exemptions were the main hold-up in approving a budget. Moreover, ending the exemptions early would have jeopardized the Stack project.

Currently, it is the largest economic development announcement in Southside history in terms of investment and jobs. Stack has promised to bring $100 billion in investment. It will also create 2,500 jobs with salaries of at least $80,500 over a 30-year span. With the tax exemptions in place, Southside Virginia is a viable location for the project.  These remarks were noted by Kevin Hughes, chief external affairs officer of Stack Americas, in a Tuesday statement.

“With the signing of the budget agreement reached by the governor and the General Assembly, Stack Infrastructure can confirm that our project at the Berry Hill Megasite in Southern Virginia will continue to advance through our competitive site selection process,” Hughes said.  Another data center that is making headway is the $2bn+ “Project Tango” data center in West Palm Beach as county officials approve its recommendations. They note that the proposal meets county zoning rules if the developer follows a long list of conditions. However, the proposed project has sparked months of opposition from residents who live nearby. 

Outlook on the Stack Infrastructure Data Center Campus in Pittsylvania

The Stack Infrastructure data center campus in Pittsylvania is one of the few data centers exempted from paying tax in Virginia. Data centers that meet certain criteria in Virginia, like investing at least $150 million and creating at least 50 jobs, are exempt from paying state retail sales and use tax on computers and other equipment. In economically distressed localities, the criteria are at least $70 million in investment and at least 10 jobs.

These exemptions are set to expire in 2035. However, a proposal to end them early, in 2027, caused a heated debate in the General Assembly. The General Assembly passed Gov. Abigail Spanberger’s budget amendments Monday, ending the months-long budget negotiations. Data center tax exemptions will remain in place until 2035. However, the industry will now be subject to a consumption tax for electricity consumed at each facility.

The Southern Virginia Megasite at Berry Hill, which at 3,528 acres is the largest industrial park in Virginia, will be almost entirely occupied by Stack’s data center campus. Stack also signed a local performance agreement with figures that top the 2024 announcement of Berry Hill’s first tenant, a Tennessee-based lithium-ion battery separator manufacturer called Microporous. The project will be built in three construction phases. The closing date on the first phase will be no later than June 2027, according to the agreement. On the other hand, the other phase closings should happen before June 2031.

Project Overview

• Project Value: $100B
• Location: Pittsylvania County, Virginia
• Developer: Stack Infrastructure
• Site: Berry Hill Megasite
• Status: Budget finalized; project advancing

Scope

• Large-scale data center campus
• Three-phase development plan
• Up to $100B investment
• 2,500 jobs over 30 years
• First phase closes by June 2027

Project Highlights

• Largest investment in Southside Virginia
• Average salaries of at least $80,500
• Occupies most of Berry Hill Megasite
• Strengthens regional digital infrastructure

Key Developments

• Virginia tax exemptions remain until 2035
• New electricity consumption tax introduced
• Budget approval removes major hurdle
• Site selection process continues

Timeline

• Phase 1 closes by June 2027
• Remaining phases by June 2031
• Multi-phase construction planned
• Long-term development expected

Outlook

• Project remains on track
• Tax policy supports continued investment
• Expected to drive regional economic growth
• One of Virginia’s largest data center developments