The Danville-Pittsylvania Regional Industrial Facility Authority (RIFA) has unanimously approved a crucial local performance agreement with Denver-based developer Stack Infrastructure, advancing the proposed multi-decade $100 billion artificial intelligence (AI) data center campus at the Southern Virginia Megasite at Berry Hill.

The agreement marks a major milestone for one of the largest planned digital infrastructure developments on the U.S. East Coast, shifting the project from a conceptual megasite proposal into a structured, multi-phase development framework governed by binding investment, employment, and revenue requirements.

Local leaders described the approval as a historic turning point for a region long impacted by the decline of textile and tobacco manufacturing. With the performance agreement now in place, the project moves into an execution phase defined by phased land acquisition, utility coordination, and long-term capital deployment.

The Terms of the Agreement: Jobs, Investment, and Revenue

The performance agreement sets minimum economic thresholds for the Southside Virginia region over a 30-year development period. Stack Infrastructure commits to a minimum of approximately $73.5 billion in capital investment, while local economic development presentations show the project’s long-term buildout target has expanded to as much as $100 billion over three decades.

Employment projections similarly reflect both baseline requirements and expanded expectations. The agreement requires at least 2,050 permanent, full-time technology jobs within 20 years, while updated project outlooks presented by local officials indicate potential employment levels of up to 2,500 jobs over a longer development horizon. Average starting salaries for campus-based roles are projected at approximately $80,500.

The $737.8 Million Shovel-Ready Land Sale

To support local fiscal planning, the agreement includes a tax revenue floor requiring Stack Infrastructure to pay a minimum of $16.25 million annually for the first 1,000 acres of development. Officials have also confirmed that the county’s data center equipment tax structure establishes a rate of $1.62 per $100 of assessed value under certain performance conditions tied to the agreement. If fully realized across the 2,990-acre footprint, annual tax revenue is projected to reach approximately $48.6 million.

The agreement follows earlier approvals and land transactions completed earlier this spring, when the Danville-Pittsylvania RIFA approved the sale of approximately 2,990 acres of the 3,528-acre megasite to SAC III Acquisition Co., an affiliate of Stack Infrastructure. The transaction, valued at approximately $737.8 million, was structured through RIFA with a 50/50 revenue-sharing arrangement between the City of Danville and Pittsylvania County. Local officials have said the proceeds help offset more than $217 million in public investment used to prepare the site since 2008.

Fast-Tracked Regional Zoning

The Pittsylvania County Board of Supervisors previously approved a fast-tracked zoning framework establishing a heavy industrial designation for the megasite, allowing data centers and supporting infrastructure to proceed by right.

The project includes extensive planning for power, water, transportation, and logistics infrastructure. Stack Infrastructure designed the campus around closed-loop cooling systems to reduce ongoing water consumption compared to traditional evaporative data centers, while regional infrastructure linked to the Dan River system supplies surface water to the site.

Closed-Loop Water Guarantees

Addressing public concern over data center water usage, economic development officials stated that Stack Infrastructure will use closed-loop cooling systems designed to significantly reduce water consumption compared to traditional evaporative data centers. The system is expected to rely on surface water from regional infrastructure connected to the Dan River and is intended to minimize reliance on local groundwater resources.

Isolated Power and Grid Protections

The project requires an initial power allocation of approximately 299 megawatts by the end of 2028. Under the agreement, Stack Infrastructure will fund required transmission and generation upgrades for Appalachian Power (APCo). The site has been separated from the local Danville Utilities network to isolate residential customers from industrial load impacts.

To manage construction activity, a dedicated Berry Hill Industrial Connector Road will direct heavy truck traffic from the site to the US 58/29 Danville Expressway bypass, reducing pressure on local residential roads. Between 2,000 and 4,000 construction workers are expected on-site during peak development phases.

The megasite also shares infrastructure corridors with a neighboring $1.35 billion lithium-ion battery separator facility that Microporous LLC is developing, creating a broader advanced manufacturing and energy technology cluster in Southside Virginia.

Although the performance agreement represents a key approval milestone, the project remains subject to phased land acquisition requirements, utility capacity confirmations, and ongoing state policy considerations.

Next Steps

Stack Infrastructure must close on the first 1,000-acre parcel by June 9, 2027. With all remaining land purchase options required to be finalized by June 9, 2031. The developer retains contingency rights tied to Appalachian Power’s ability to confirm delivery of the required 299-megawatt capacity by 2028. While broader project economics remain influenced by Virginia’s evolving data center tax incentive framework.

Additionally, this megaproject is just one of several major data center expansions underway across Virginia, underscoring the state’s growing role as a national AI infrastructure hub. In Henrico County, QTS is advancing plans for a major expansion at its White Oak Technology Park campus, proposing 17 new data center buildings spanning nearly 8 million square feet.

Berry Hill $100B AI Data Center — Factsheet

Project: Hyperscale AI Data Center Campus
Developer: Stack Infrastructure (SAC III affiliate)
Location: Berry Hill Megasite, Pittsylvania County / Danville, Virginia

Status

• RIFA approved local performance agreement (May 2026)
• Heavy industrial zoning and land framework in place
• ~2,990 acres under acquisition within 3,528-acre megasite

Scale & Investment

• Up to $100B projected buildout over ~30 years
• Minimum committed investment: ~$73.5B
• Land sale: $737.8M, 50/50 split between Danville & Pittsylvania County

Jobs & Economy

• Minimum: 2,050 permanent jobs
• Expanded outlook: up to 2,500 jobs
• Avg starting salary: ~$80,500
• Significant construction workforce during buildout

Infrastructure

• Power requirement: ~299 MW minimum by 2028
• Developer funds Appalachian Power upgrades
• Separate from Danville Utilities grid

Tax Structure

• Minimum tax floor: $16.25M/year (first 1,000 acres)
• Full buildout: ~$48.6M/year potential revenue
• Equipment tax rate: $1.62 per $100 assessed value (conditional)

Timeline

• Phase 1 land closing: June 2027
• Full land options: June 2031
• Multi-decade development (20–30 years)

Co-location

• Adjacent $1.35B Microporous battery plant
• Shared regional infrastructure corridors