County Halts New Data Center Proposals While Google Projects Advance
TL;DR: Chesterfield County tightened zoning rules in 2026 to require conditional use permits and public hearings for new data centers, effectively halting additional proposals while three previously approved Google projects continue, with one already under construction.
Quick facts
- Who: Chesterfield County Board of Supervisors; Google
- What: County zoning rule requiring conditional use permits for new data center proposals; three Google data center projects approved before the change continue; Project Peanut under construction
- When: Zoning ordinance took effect January 1, 2026; three Google projects approved June 2025
- Where: Chesterfield County, Virginia (Project Peanut at 2700 Bermuda Hundred Road; Project Skye near Genito and Moseley roads; Project Loch at Watkins Centre Parkway)
The story
Chesterfield County has tightened zoning restrictions on data center development, moving from allowing facilities to be built "by right" under industrial zoning to requiring case-by-case conditional use permits approved by the Board of Supervisors. The Zoning Ordinance Modernization (ZOMod) took effect on January 1, 2026, after the Planning Commission unanimously endorsed it in July 2025 and the Board of Supervisors gave final approval on September 17, 2025.
The new requirement effectively halts additional data center proposals in the county. However, three Google data center projects that received Board approval before the ordinance change are permitted to proceed. Project Peanut, located at 2700 Bermuda Hundred Road in Chester on 307 acres, is the only one currently under construction, with a site plan filed in November 2025 for three buildings totaling approximately 856,000 square feet. Project Skye, planned for an 880-acre site south of Genito Road and east of Moseley Road in far western Chesterfield, and Project Loch, a 350-acre site at Watkins Centre Parkway near Route 288 in Midlothian, both received Board approval in June 2025 but have not yet begun construction.
County leaders cited potential tax revenue from the existing projects as justification for allowing them to proceed. The Board approved 30-year tax incentive agreements in June 2025 locking the equipment tax rate at $0.24 per $100 of assessed value. The county estimates this will generate more than $4.2 million annually per $1 billion invested across the three sites.
Google's ownership of the three projects was publicly confirmed for the first time on August 27, 2025, when Gov. Glenn Youngkin jointly announced a $9 billion Virginia investment with the company. The negotiations between the Chesterfield Economic Development Authority and Google began in 2018 and remained confidential until the public announcement, with supervisors later stating that a nondisclosure agreement had prevented them from sharing project details before voting on them.
Key players
- Chesterfield County Board of Supervisors: Approved the Zoning Ordinance Modernization requiring conditional use permits for new data centers, and approved the three Google projects
- Google: Developer of three data center projects in Chesterfield County; publicly confirmed as owner in August 2025
- Chesterfield County Economic Development Authority: Negotiated with Google on the three projects under nondisclosure agreement beginning in 2018
- Chesterfield County Planning Commission: Unanimously endorsed the Zoning Ordinance Modernization in July 2025
Key dates
- 2025-01-01: Zoning Ordinance Modernization took effect, requiring conditional use permits for new data centers
- 2025-06-01: Board of Supervisors approved rezoning for Project Skye and Project Loch
- 2025-06-01: Board approved 30-year tax incentive agreements locking $0.24/$100 equipment tax rate
- 2025-07-01: Planning Commission unanimously endorsed Zoning Ordinance Modernization
- 2025-08-27: Governor Youngkin and Google jointly announced $9 billion Virginia investment, publicly confirming Google's ownership of the three Chesterfield sites
- 2025-09-17: Board of Supervisors gave final approval to Zoning Ordinance Modernization
- 2025-11-01: Project Peanut site plan filed with three buildings totaling approximately 856,000 square feet
The case for
Data center development provides significant tax revenue diversification for a county with an 80 percent residential tax base, and the 30-year agreements lock in revenue projections that can support public services and infrastructure. The three approved projects represent investments already committed by a major technology company, and halting them would breach those agreements.
The case against
New data center proposals now require public scrutiny and Board approval, addressing concerns that rapid development was happening behind closed doors and without public input. The change allows residents to weigh infrastructure impacts, including power and water demands, before projects proceed, rather than discoveries of major facilities after land acquisition and zoning approvals.
Why it matters: The policy shift signals the county is balancing economic opportunity with oversight, but residents will see continued growth of data center infrastructure for years as the three approved projects build out. Rising electricity costs tied to data-center demand have prompted concerns about residential rate increases; Virginia's state watchdog estimated residential electric bills could rise $14 to $37 per month by 2040 due partly to data-center growth.
Places
Development timeline
- 2018-01-01Confidential Google negotiations begin: Chesterfield County Economic Development Authority begins nondisclosure-agreement-protected negotiations with Google regarding three data center projects
- 2025-06-01Three Google projects receive Board approval: Board of Supervisors approved rezoning for Project Skye and Project Loch; also approved 30-year tax incentive agreements for all three Google projects locking equipment tax rate at $0.24/$100 of assessed value
- 2025-07-01Planning Commission endorses zoning modernization: Planning Commission unanimously endorsed Zoning Ordinance Modernization (ZOMod) requiring conditional use permits for all new data centers
- 2025-08-27Google ownership publicly confirmed: Governor Glenn Youngkin jointly announced with Google a $9 billion Virginia investment, publicly confirming for the first time that Google is the owner of the three Chesterfield data center projects
- 2025-09-17Zoning ordinance receives final Board approval: Board of Supervisors unanimously approved Zoning Ordinance Modernization, which would reverse the 'by right' status of data centers and require conditional use permits for all new proposals
- 2026-01-01New zoning rules take effect: Zoning Ordinance Modernization takes effect, requiring all new data center proposals in Chesterfield County to obtain a conditional use permit from the Board of Supervisors after public hearing
- 2025-11-01Project Peanut breaks ground: Project Peanut, the first Google data center to begin construction in Chesterfield County, files site plan for three buildings totaling approximately 856,000 square feet at 2700 Bermuda Hundred Road in Chester
Related links
Read the original at WTVR CBS 6 (YouTube) →
Sources
- Video presentation on Chesterfield County data center zoning changes
- Chesterfield County official website