The sale of the Heartland Innovative Technology (HIT) Park to AVAIO Digital, estimated to generate $5 billion for Prince Edward, presents a complex web of investments, jobs, and infrastructure developments that could significantly reshape the county’s landscape. The breakdown of the $5 billion figure is not as straightforward as it initially appears. The purchase price for the property is a mere $12.2 million, with a $250,000 deposit due within 10 days, but the bulk of the investment comes from the capital expenditures related to the data centers.
The master agreement outlines a range for the capital investments, from $800 million to $2.4 billion, depending on the scale of the project. This investment includes land acquisition, site preparation, construction, and the installation of necessary equipment. However, this figure is not set in stone and could fluctuate based on the number of buildings constructed, ranging from two to five. Additionally, AVAIO estimates that their data center tenants will invest an additional $2.4 billion in equipment, though this figure is also contingent on the evolving technology landscape and the number of buildings constructed.
The job creation aspect is equally uncertain. AVAIO estimates 100 temporary construction jobs, but the permanent job count will depend on the final configuration of the buildings. The agreement suggests 30 permanent jobs per two-story building and 15 per one-story building, but these are estimates, not guarantees. The construction timeline is also lengthy, with a potential six-year window before the first building is completed. If construction does not commence within the agreed timeframe, Prince Edward County has the right to reacquire the property, albeit with some financial obligations.
The infrastructure requirements are substantial. The county’s Industrial Development Authority (IDA) is responsible for designing and constructing the water infrastructure, estimated to cost $12.6 million. The Town of Farmville will handle sewer infrastructure, estimated at $8.1 million. Road improvements, estimated at a minimum of $4.5 million, will be funded through a transportation grant and other state funds. If these funds are not secured, AVAIO will cover the costs, with the county reimbursing the company over a 10-year period, up to 50% of the amount paid.
This investment could significantly enhance Prince Edward’s infrastructure and connectivity, potentially transforming the county’s economy. However, the deal’s success hinges on several variables, including the final scale of the project, the evolving technology landscape, and the timely completion of infrastructure projects. The agreement’s flexibility in job estimates and construction timelines adds an element of uncertainty, but it also allows for adaptation to changing circumstances.
The deal has been met with enthusiasm from both AVAIO and Prince Edward officials. AVAIO’s Kevin Murphy highlighted the strategic location of the property and the company’s commitment to sustainable approaches. IDA Chairman Brad Watson and Board of Supervisors Chairman Bill Jenkins both expressed excitement about the project’s potential to transform the county, bolstering its infrastructure and providing a stable economic foundation.
This investment could catalyze further development in the sector, encouraging other tech companies to consider Prince Edward as a viable location for similar projects. The focus on sustainable approaches and the potential for significant job creation could also attract other industries seeking to align with environmentally conscious practices. The deal serves as a testament to the evolving role of data centers in economic development, highlighting the need for robust infrastructure and a flexible approach to job creation and investment.