Are Virginia's Historic Landscapes the Next Frontier for Big Tech—and at What Cost?

Data centers, driven by Big Tech's eastward expansion, have popped up like 7-Elevens across Virginia—reshaping rolling hills and historic communities in the name of progress.

The aggressive transformation, primarily established over the last 15 years, leaves Virginians with a question: Who stands to benefit the most? Recent political contributions only further exacerbate the need to answer that question, as LinkedIn co-founder and "progressive" mega-donor Reid Hoffman and Microsoft's Director of AI, Kevin Scott (and his wife), have funneled over $600,000 into Democrat Abigail Spanberger's 2025 gubernatorial campaign.

Are these contributions simply based on political identity, or are they another strategy used by California elites who stand to gain the most from data center expansion?

It's worth noting that Virginia currently grants generous tax incentives to data center developers—saving companies nearly $1 billion in 2023 alone—but things are destined to change. Those incentives are set to expire in 2035, and the Virginia legislature is still kicking the can on how data centers should be properly regulated.

Electing a friendly governor could be a very sound investment for Big Tech as policy debates continue. But will out-of-state tech moguls put Virginians above profit margins?

The conversation around data centers has veered away from blocking development and now resides in the sphere of defining good policy. It's undeniable that data centers bring strong revenue to the state, but it is easy to ignore the Virginians on the ground while seeking those revenues.

As Virginians get priced out of their homes due to hiked assessments and energy grids continue to strain—largely due to data centers—lawmakers must craft policies that put Virginians first.

(RELATED: Virginia Ratepayers Getting Smacked with 50% Increase in Electricity Bills Over Next Two Years)

Investing In Policy Preference?

Microsoft, one of the leading players in Virginia's data center market, is already deeply embedded in both Northern and Southern Virginia. More locations are under construction, and it’s a safe bet that the company plans to stick around for a while.

Scott's large personal donation to Spanberger doesn't come as a surprise—it looks like a business investment. Microsoft is preparing to pour $80 billion into data center projects in 2025. They've partnered with investment firms Blackrock, MGX, and Global Infrastructure Partners to amass $100 billion for data centers and supporting power infrastructure.

Microsoft operates major data centers in Boydton and Clarksville (Mecklenburg County) and Manassas (Prince William County)—which support its Azure cloud services. They've planned a new site in Chase City. A facility is being finished in Leesburg, Virginia.

Microsoft has a total of 12 data centers in Virginia as of 2025.

Hoffman doesn't explicitly own data centers, but he is a central figure in the tech industry and has numerous ties to organizations with skin in the game.

He's tied to Iconiq Capital, a wealth management firm that serves Silicon Valley elites—working as an advisory council. In 2016, Iconiq launched Iconiq DC Management, a subsidiary specifically created to invest in data centers across the U.S., including in Northern Virginia. Iconiq is also a co-founder of IPI Partners, a data center investment firm that now owns properties in Ashburn.

In 2024 Blue Owl acquired IPI partners and its $11 billion in assets.

Hoffman's backing of Abigail Spanberger may also be part of a much broader political agenda. Over the years, he's become one of the Left's most aggressive mega-donors—channeling millions into "progressive" causes, anti-Trump smear campaigns, and efforts to flip red states blue—including a targeted push to shift Virginia's legislature blue in 2019.

He pushed $1 million toward the legal defense of Fusion GPS, the firm behind the discredited Trump-Russia dossier. Additionally, he has links to Jeffrey Epstein's private island—where he attended a "breakfast party" with Bill Gates and later gave Epstein an award for supposedly challenging "society's injustices." (scoff)

Seeing Big Tech pouring money into Spanberger leaves Virginians with serious questions. And when it comes to data centers, these are not partisan questions—they're questions about who will gain the most.

Virginia's economic and political landscape will undoubtedly be shifted by the hand of Big Tech, so it's now more important than ever that Virginians call for leadership that answers to voters—not donors.

(RELATED: Abigail Spanberger Swore Off Corporate Money. Her Top Donors Are All Big Business Insiders)

Balancing Land Assessment with Progress

Virginia has more data centers than any state (25 percent of all data centers), and Northern Virginia has transformed into a new-age battleground between ordinary Virginians and the Tech Giants of Silicon Valley.

Loudoun County, historically viewed as a rural paradise, is now known as "Data Center Alley." The area is now spotted with numerous server farms backed by Amazon, Microsoft, Google, and other top tech conglomerates.

In 2024, Loudoun's tax base ballooned by nearly 20 percent to $170.5 billion. A majority of the increase was directly connected to a 78.7 percent spike in the assessed value of data centers. That windfall has often come at the expense of homeowners and landowners just struggling to keep up with increased land assessments.

Average single-family home prices have risen to nearly $984,000, and soaring property tax bills followed suit. The county continues to lower real estate taxes, but increasing land assessments have left many in dire straits.

Between 2021 and 2025, Loudoun County saw rapid growth in real estate value. In 2022, real estate zoned for family homes in western Loudoun jumped by 13.6 percent. In 2023, real estate with existing family homes increased by 7.5 percent.

From 2023 to 2025, single family home and townhouse value assessments increased on average by $100,000.

In nearby Prince William County, outraged residents took the county to court. Sixteen landowners, whose properties are near the "PW Digital Gateway" data center project, filed lawsuits after their tax assessments skyrocketed by what they considered an unreasonable amount.

The plaintiffs argued that the county assessed their land based on speculative use—not its actual condition. In one instance, a 76.5-acre parcel valued at $1.62 million in 2023 jumped to $25 million in 2024.

Another parcel, 40 acres, jumped from around $920,000 in 2023 to over $12.9 million in 2024. The Judges sided with the county, leaving the plaintiffs—many of whom had lived on their land for generations—footing the bill for inflated taxes.

As data center development continues, the Virginia legislature needs to implement policies, like a real estate tax cap, that protect landowners from the tax hikes associated with data centers. Progress cannot come at the expense of Virginians—especially when California elites stand to gain the most.

(RELATED: Virginia’s Car Tax is the Highest in the Nation and Democrats Want to Keep it That Way)

Moving Forward with Caution

Data centers are here to stay, and they bring many benefits to the state when properly regulated. Virginia is already the largest host of data centers in America—and it is likely more will continue to be built.

Virginia must balance the lure of increased revenue with policies geared towards protecting Virginians and not California elites. Spanberger's backing from Big Tech raises serious questions because the legislature has yet to finalize a long-term plan for managing data centers.

If Big tech seeks to buy favor with its donations to Spanberger, they may play a negative role in reshaping Virginia's economy, land use policies, and energy infrastructure—in their own image.

We could soon witness the Californication of Virginia—where working-class families get priced out, tech bros gobble up rural land, and public officials bend over backward to accommodate power hungry corporations.

Virginians need to remain vigilant to prevent this from happening.