CleanArc Data Centers has been granted planning permission for a 650-acre data center campus in Caroline County, Virginia.

As reported by the Fredericksburg Free Press, The Caroline County board of supervisors has approved the development, on a plot of land near Exit 110 of the Interstate 95 between Ashburn and Richmond.

It is the former site of the Virginia Bazaar flea market, but will now house a campus of three buildings, each with two data halls.

CleanArc hopes the site will offer 200MW by Q3 2026 and an additional 300MW by mid-2027. It will eventually scale to more than 600MW, and says it could spend up to $8.8 billion on the project, which will create 50 full-time jobs.

The company has also been granted permission for two additional buildings on adjacent plots, measuring 87.5 and 126.6 acres, respectively.

County officials said CleanArc will effectively receive a tax rebate as a result of the size of the contribution it is set to make to Caroline County funds. “In exchange for this anticipated capital investment and job creation, the county will provide funds to its Economic Development Authority for the purpose of making annual grant payments to CleanArc and its tenants upon the completion of each building,” a statement from the county said.

“These annual grant payments will be drawn from the increased real estate and personal property tax revenue generated at the project site as a result of the project, and therefore will function as a tax rebate after these taxes are paid each year.”

It noted that the $13 million in annual tax revenue the CleanArc site will generate is equal to 17 percent of the county’s general fund budget.

“These funds can be used in a myriad of critically important ways by the county,” the statement said. “Among other things, this tax revenue will be needed for new and upgraded schools, new county facilities, fire engines and ambulances, EMS providers and sheriff’s office deputies, water and sewer upgrades, road improvements, and other increasing expenses on the horizon.”

Caroline County, located south of Fredericksburg and North of Richmond, hasn’t traditionally hosted many data centers, but is now attracting more developments as space in Northern Virginia is at a premium.

Amazon is developing the Orrock Tech Campus (since renamed the Mattameade Tech campus) – a 920-acre site set to host 4.5 million sq ft (418,063 sqm) across 11 data centers. The company was recently granted an economic deal with Spotsylvania and Caroline Counties for the project.

Avaio also has Caroline County data center projects planned in Ruther Glen and Ladysmith.

CleanArc was launched early last year by clean energy investment firm 547 Energy. Private equity firm Snowhawk invested in CleanArc in September and is now the company's majority owner. The company has since taken follow-on investment from Townsend Group and Nuveen.

Its business model is to build hyperscale campuses for its clients and help put in place clean energy agreements for each site.

We spoke to CleanArc’s CEO Jim Trout about his ambitions for the company for the latest edition of DCD Magazine, out now.