The relentless march of AI is reshaping the construction industry, with data centers at the forefront of this transformation. The insatiable demand for AI-ready infrastructure is driving unprecedented growth in data center development, with over 2,288 megawatts of new capacity under construction in major U.S. markets in 2023, double the previous year’s total, according to CBRE. This growth, however, is not without its controversies, as the race to build these high-tech facilities pits cutting-edge development against the preservation of America’s historic sites.
Virginia, often dubbed “Data Center Alley,” is at the epicenter of this conflict. The state’s business-friendly policies, robust fiber network, and relatively inexpensive energy market have attracted tech giants like Amazon Web Services (AWS), Microsoft, Google, and Equinix. In 2023, the sector generated over $2.3 billion in state and local tax revenue and supported 74,000 jobs, according to the 2024 Virginia Data Center Report from the Joint Legislative Audit and Review Commission (JLARC). Yet, this economic boom is encroaching on historic Civil War battlefields, sparking concerns from preservationists who warn that irreplaceable landmarks could be lost forever.
The American Battlefield Trust reports that at least 13 historically significant sites are at risk due to planned data center projects. The Battle of Bristoe Station battlefield is a hotspot for controversy, with local historians and preservationists arguing that large-scale development will permanently alter the historic landscape. In response, state officials have proposed buffer zones and mandatory impact studies, but the trust argues these measures are not strong enough to prevent irreversible damage. “The audit reveals that current state measures are insufficient to protect historic sites from encroaching commercial developments, including data centers,” the report warns.
While data centers serve as powerful economic catalysts, driving demand for high-skilled labor and boosting local economies, they also raise environmental concerns. Despite investing in renewable energy solutions and carbon offset programs, the industry remains one of the largest electricity consumers globally. In Virginia, data centers accounted for 21 percent of Dominion Energy’s total electricity sales in 2023, raising concerns about long-term grid sustainability. Companies like Microsoft and Google are spearheading the use of hydrogen fuel cells and direct air capture technologies to minimize their carbon footprints. AWS has committed to fully powering its new developments with on-site solar energy in Loudoun County, but the American Battlefield Trust Report cautions that large-scale construction can still disrupt local wildlife and increase water consumption.
Negotiating an armistice between economic growth and cultural preservation requires thoughtful zoning policies and proactive community engagement. The JLARC report underscores the importance of comprehensive environmental and cultural impact assessments. In Manassas, local officials are working with preservation groups to establish historic overlay districts, ensuring that future developments must meet stricter guidelines.
Prince William County officials are engaged in ongoing discussions about balancing economic development with historic preservation, but there are currently no formal policies requiring data center developers to contribute to preservation funds. Instead, community advocates and policymakers are exploring ways to integrate better zoning practices and impact studies before project approvals.
As the demand for AI-ready data center capacity is projected to grow at an average annual rate of 33 percent between 2023 and 2030, with AI workloads accounting for approximately 70 percent of total data center demand by the end of the decade, according to McKinsey & Company, innovation in sustainable development is critical. The future of data center development will require collaboration across multiple sectors, with developers, policymakers, and preservationists working together to find solutions that balance both technological and historical considerations. Companies leading the charge, such as Google, AWS, and Equinix, are already experimenting with modular data center designs, which allow for scalable expansion while minimizing the impact on local landscapes.
Community engagement will play a decisive role in shaping future projects. Developers who actively involve local stakeholders in the planning process and prioritize sustainable building practices will have a better chance of securing public support. By prioritizing responsible growth, developers and communities can drive economic expansion while protecting the landmarks and environments that shape their identity. The challenge is finding a way for progress and preservation to coexist.