Loudoun County: The Data Center Capital of the World

Buddy Rizer, Executive Director of Economic Development - Executive Director/Secretary - Economic Dev. Authority, Loudoun County Government

Buddy Rizer, Executive Director of Economic Development - Executive Director/Secretary - Economic Dev. Authority, Loudoun County Government

In the 1990’s Gatorade’s slogan was “I want to be like Mike.” Michael Jordan was the greatest basketball player of his time, maybe ever. When it comes to attracting data center development in the 2020’s and the foreseeable future, many localities may say “I want to be like Loudoun,” as Loudoun County, Virginia is home to Data Center Alley and has the largest concentration of data centers in the world. If the next six highest data center markets are combined, it wouldn’t equal what exists in Loudoun.

The mass of data centers in Loudoun County is the foundation for the internet and the cloud. Data centers have greatly contributed to the quality of life and the amenities offered in Loudoun. They are a major reason why last year new commercial investment in Loudoun exceeded $10 billion which is more than several states. As data centers proliferated in Loudoun, the real estate tax rate decreased by nearly one third while the County budget increased by nearly 400% since 2010. In addition, data centers provide high end construction jobs, employ a high-income work force, promote associated business growth, and attract prestigious technology companies to locate nearby.

The Data Center “Big Bang”

Data centers are the unsung heroes of the digital revolution, powering the technologies that have become integral to our lives. The Commonwealth of Virginia, and Loudoun County in particular, have emerged as powerhouses in the world of technology, boasting a rapidly growing and thriving data center industry. With its strategic location, robust infrastructure, favorable business environment, and a commitment to sustainable practices, Virginia has become a magnet for data center development and innovation.

From facilitating global communication to powering artificial intelligence (AI), data centers are indispensable in modern society. Their role will continue to expand as technological innovation accelerates, enabling the unlocking of new frontiers and opportunities in the ever-evolving digital landscape. These facilities are the backbone of the modern digital network, enabling businesses, governments, and individuals to harness the power of data, cloud computing, and connectivity.

"The mass of data centers in Loudoun County is the foundation for the internet and the cloud."

The concept of data centers dates back to the emergence of mainframe computers in the mid-20th century. In the 1950s and 1960s, computers occupied entire rooms and were operated by specialized teams. These mainframes required controlled environments, including temperature and humidity regulation, to ensure optimal performance. Data was stored on magnetic tapes and punch cards, laying the foundation for the idea of centralizing computing resources. As computing technology advanced, data centers evolved with many companies building their own facilities to house the hardware necessary for their own operations.

The 1990s marked a significant turning point in the history of data centers with the proliferation of the internet and the dotcom boom. The increasing demand for online services, e-commerce, and connectivity led to the establishment of commercial data centers. Pioneering companies like Equinix and Digital Realty offered co-location services, allowing businesses to rent space for their servers within these facilities. The 2000s witnessed the rapid growth of virtualization technology and the emergence of cloud computing. Cloud providers like Amazon Web Services (AWS), Microsoft Azure, and Google Cloud introduced the concept of renting computing resources on-demand, eliminating the need for businesses to manage their own physical servers. This shift catalyzed the expansion of massive data center complexes around the world, designed to accommodate the infrastructure required for cloud services.

Loudoun County has mirrored and led this transformation. Loudoun was the home to one of the biggest internet pioneers, America Online. AOL chose Loudoun County as its headquarters in 1997 and became a major driver in attracting a high-level technology workforce and the construction of digital infrastructure. With its headquarters already based in the county, AOL recognized the need for robust infrastructure to support its expanding user base and the increasing demand for online content. The company established data centers in the region to house the servers and networking equipment that formed the backbone of its services. By the mid 2010’s, Loudoun became the largest co-location market in the world, and led the industry into the cloud as AWS built its largest collection of data centers throughout the late teens and early 2020’s.

Today, Loudoun County is home to more than 175 buildings and more than 31 million square feet of data centers, with another 4 million square feet currently under development. But data center growth is not limited to Loudoun. Since 2015, data centers space worldwide grew 17-fold to approximately 3.6 billion square feet. Data center growth, as measured by power consumption, is anticipated to be 10% a year through 2030. The continued rise in the use of AI will further drive the need for data center expansion.