The Conversation Has Been Brought to the Table

Before last year, there had not been a teacher supplement increase in 25 years. Educators are leaving for neighboring districts that pay better. Classified staff, the people who drive the buses, serve the meals, and hold our schools together, are working second and third jobs to make ends meet.

We do not need more schools built. We need investment in the system we already have: competitive supplements to retain good educators, resources for classrooms, and support for the staff who show up every day for our kids.

What revenue could do: Even at conservative steady-state estimates, a data center project generating $71M+ annually in property tax would more than cover the school system's requested supplement increases while funding every other county priority. Caldwell County (Google) saw 51.5% wage growth since 2015. Mecklenburg County, VA (Microsoft) built a state-of-the-art educational complex. This is not theory. It is precedent.

The county's current detention facility needs significant upgrades or replacement. This is not a new issue. It has been deferred for years, and the cost of waiting continues to grow. The proposed county budget of $72.47M already stretches to cover rising costs in detention operations, inmate housing, and emergency services.

A new or upgraded facility is coming regardless. The question is whether it gets funded through tax increases on existing residents or through new revenue from economic development that broadens the tax base.

What revenue could do: Property tax revenue from a $10B data center project could fund major capital projects like a detention facility without raising the tax rate on residents. The current rate of $0.7129 is already down from $0.89. Broadening the tax base keeps rates low while funding the infrastructure our community needs.

A data center campus of this scale would create 500-700 permanent positions plus approximately 1,500 construction jobs during buildout. Technician roles start around $57K, well above the county average of ~$45K.

What to push for: Local hiring requirements (25-30% minimum), VGCC training partnerships, and living wage floors written into the development agreement. Ask: "How many of these jobs will go to Vance County residents?"

Vance County Schools currently ranks 96th out of 100 counties in per-student education spending, in a state that is nearly last in the nation. Property tax revenue is the primary local funding source for schools. Even at conservative steady-state estimates, a $10B project would generate more annual property tax than the county's entire current budget. In Mecklenburg County, Virginia, Microsoft's data center tax revenue helped fund a state-of-the-art educational complex. In Caldwell County, NC, Google provided $270,000 in workforce development grants.

What to push for: Dedicated education funding commitments written into any development agreement. Direct contributions to the school system, workforce development grants for VGCC, and technology training programs like Google's STAR Program and Microsoft's Datacenter Academy. These programs exist, but they are negotiated, not automatic.

Traditional evaporative cooling towers for a 1,500 MW facility could consume 2.5M+ gallons per day, with 70-80% permanently evaporated. The Kerr Lake Regional Water System currently serves about 4 MGD total, with an expansion underway targeting 15 MGD capacity (Henderson Public Utilities). NC is currently in moderate to extreme drought statewide.

However, the technology has changed. Direct-to-chip liquid cooling places sealed cold plates directly on processors, circulating coolant through a closed loop with no evaporation. This approach reduces daily water consumption by up to 99.6% compared to traditional evaporative towers. Vantage Data Centers' Wisconsin campus uses roughly 22,000 gallons per day versus 5 million for an equivalent evaporative facility. Microsoft announced zero-water- evaporation designs using direct-to-chip cooling for new facilities in 2024. NVIDIA's latest GPU racks (GB200 NVL72, 120-140 kW per rack) ship with liquid cooling built in because air cooling physically cannot handle the heat (Microsoft Cloud Blog).

What to push for: Require closed-loop, non-evaporative cooling systems as a condition of any development agreement. Set a maximum Water Usage Effectiveness (WUE) of 0.1 L/kWh. Mandate annual public water consumption reporting. South Carolina HB 4583 and Kansas SB 400 both require zero net water withdrawal for data centers. Oregon passed HB 4138 requiring water use plans for facilities over 100 MW. The technology exists. Requiring it is not unreasonable.

1,500 MW is enough power for roughly two cities the size of Raleigh. Duke Energy's DEP subsidiary serves Vance County. Infrastructure costs are spread across all DEP ratepayers, not just local customers.

What to push for: Virginia's SCC created a separate rate class (GS-5) for data centers over 25 MW, shifting infrastructure costs to the users who cause them (Inside Climate News). NC's proposed Ratepayer and Resource Protection Act would do the same. Our state legislators should hear from us on this.

Data centers operate large cooling systems and backup diesel generators 24/7. Continuous low-frequency noise is a documented concern in communities hosting these facilities. The town of The Dalles, Oregon (home to Google) has dealt with ongoing noise complaints from cooling systems.

What to push for: Vance County currently has no data center-specific noise ordinance. Best practice: 45 dB(A) at residential property lines at night, 55 dB(A) daytime, with generator testing limited to weekday daytime hours only. This should be adopted before any development agreement is signed. Read the full noise report →

Roads, water lines, sewer capacity, broadband. The presentation confirmed that developers in today's market are committing to fund their own utility and infrastructure upgrades. This is a direct result of communities asking tough questions.

What to push for: Written, binding infrastructure commitments, not verbal promises. Independent verification that sewer capacity (Henderson's Nutbush facility is permitted at 4.14 MGD) can handle additional discharge. Road improvement commitments for construction traffic.

A major development that pays its full property tax obligation could reduce the tax burden on existing residents by broadening the tax base. The current rate of $0.7129 is already down from $0.89 after the most recent revaluation.

What to push for: Transparency on any incentive deals. Every dollar rebated to a developer is a dollar not going to county services. If incentives are offered, they should include clawback provisions: if the company does not meet job or investment commitments, the money comes back.

Economic development that brings higher-paying jobs and increased tax revenue gives the county resources to invest in public safety, emergency services, and facilities. Vance County's infrastructure needs extend beyond roads and water.

What to push for: Community benefit agreements can include direct contributions to public safety infrastructure. Prince William County, Virginia negotiated $12M in community facility contributions as part of their data center corridor agreement. Our community should name its priorities and put them on the negotiating table.