Virginia welcomes three billion dollar investment from CleanArc in Caroline County data center development

Richmond, Virginia – In a landmark announcement that underscores Virginia’s growing role in the global technology landscape, CleanArc Data Centers officially broke ground on a massive new data center campus in Caroline County. The $3 billion investment is the largest announced business recruitment in the history of the county and is expected to create 50 high-quality jobs while setting a new standard for sustainable, community-conscious digital infrastructure development.

Massive Project to Support Hyperscale Demand and Sustainability

Known as the VA1 project, the new campus will eventually deliver nearly 1 gigawatt of critical grid capacity, enabling it to meet the growing demand for hyperscale and sustainability-oriented infrastructure. CleanArc has integrated forward-thinking design elements to align with environmental goals, including closed-loop water systems to minimize consumption, noise and light pollution mitigation, and land conservation initiatives. These features reflect a larger commitment to ecological responsibility and community impact.

“Virginia is the data center capital of the world, and I am thrilled that CleanArc has selected Caroline County as the site to invest $3 billion for their newest data center campus,” said Governor Glenn Youngkin during the groundbreaking ceremony. “By listening to Virginians and collaborating with industry leaders, CleanArc is ensuring this campus brings great jobs and revenue to this community and the Commonwealth while ensuring the high quality of life Virginia is known for.”

Founded in 2022, CleanArc is recognized for pioneering sustainability-focused data center solutions, combining renewable energy, scalable infrastructure, and responsible land use. The Caroline County campus represents its first major project in the Greater Fredericksburg region, setting a new benchmark for data centers statewide.

Strong Local and State Collaboration

The project’s success is being credited to close cooperation between CleanArc, state officials, and Caroline County leadership. “With this campus, CleanArc is ensuring every data center built in Virginia is better than the last,” said Secretary of Commerce and Trade Juan Pablo Segura. “This enormous investment in Caroline County is a sign of Virginia’s growing dominance in the global tech industry.”

James Trout, founder and CEO of CleanArc, echoed the importance of partnership and long-term commitment. “Today marks an important milestone for CleanArc Data Centers and Northern Virginia. This new, leading-edge campus reflects our commitment to delivering reliable, efficient, and sustainable data center solutions while supporting the local economy and workforce.”

The project is eligible for Virginia’s Data Center Sales and Use Tax exemptions, a significant incentive that supports investments in qualifying hardware and software.

A Model for Responsible Development

Caroline County officials emphasized that the project reflects more than just economic growth—it’s a model for responsible planning and community engagement.

“CleanArc’s $3 billion initial monetary investment in Caroline County is the largest announced business recruitment in the county’s history,” said Nancy Long, Chair of the Caroline County Board and Supervisor of the Port Royal District. She highlighted the county’s proactive role in creating regulatory guidelines that ensure development is compatible with the region’s values. These include setbacks for buffering, noise control requirements, screening regulations, and a ban on the use of potable water for industrial cooling.

“CleanArc is setting the model for responsible data center development in Virginia and Caroline County,” Long added.

Supervisor Floyd Thomas of the Mattaponi District reinforced the county’s dual commitment to economic advancement and rural preservation. “CleanArc’s data center project in Caroline, which includes the Bazaar site, is a demonstration of the county’s commitment to maintaining a rural lifestyle while providing substantial revenue for school improvements, critical infrastructure upgrades, and public safety investments, while keeping citizen’s taxes down in the face of growing costs for essential services.”

He noted that all data center development in the county will be confined to interstate interchanges or designated technology zones, ensuring the impact on rural communities remains limited.

With construction now underway, CleanArc’s Caroline County project not only represents a major leap forward in Virginia’s digital infrastructure but also highlights a new model of economic growth that balances industry needs with community and environmental responsibility.