REGIONAL VIEW
Southwest virginia FOR THE RECORD
Will Payne says Southwest Virginia’s solar and geothermal assets make it a good fit for data centers.
Can Southwest Virginia
win the data center game? by Mason Adams
L
ike many other parts of the commonwealth, Southwest Virginia is making a play to attract data
centers, offering cheap land, available workers and a natural cooling system. Data centers aren’t huge employers
but do offer high wages and significant tax revenue — which other regions in Virginia have taken full advantage of, particularly Loudoun County in Northern Virginia.
A study conducted by Richmond-
based OnPoint Development Strategies and released in October by regional mar- keting group InvestSWVA concludes that the region could produce 2,000 jobs and $50 million in annual revenue if it becomes a destination for data center investment. But with more localities looking to cash
in on data centers, can Southwest Virginia compete? “Data center site selection is an
increasingly competitive process, and large operators have more options than ever before as more locations become aware of the economic benefits of data centers,” says Rich Miller, founder and editor of Data Center Frontier, a trade publication. The data center initiative, called Project
Oasis, hopes to leverage vast underground pools of water in former coal mines as a significant energy and cost-savings tool to entice companies looking to save money on cooling their data centers.
Photo by Earl Neikirk Miller says Project Oasis “could be
intriguing to some large operators — if supported by other initiatives.” The study acknowledges the region’s
challenges, including a smaller, less edu- cated workforce and the lack of a local property-tax and depreciation structure designed to encourage data center invest- ment. Also, the region lags behind more populous regions in broadband connectiv- ity, although more fiber-optic lines are currently being added. Will Payne, director of InvestSWVA and managing partner of Coalfield Strategies, says local counties are poised to change their tax structures, and the University of Virginia’s College at Wise and community colleges can provide train- ing for most data center jobs. “We see our competition not as
Northern Virginia but Central Virginia,” Payne says. “Southwest Virginia may not be for every data center, but it is the right location for the right data center, especially someone focused on leveraging the region’s solar and geothermal assets to deliver on their sustainability goals.” “There are a lot of eggs in that
Northern Virginia basket,” says Kent Hill, managing principal of OnPoint Development Strategies. “There does need to be some diversity and backup for those facilities. We see that as a niche for Southwest Virginia.”
www.VirginiaBusiness.com
Gov. Ralph Northam announced in early November that more than $3.9 million in Appalachian Regional Commission (ARC) funding will go toward recovery health programs, broadband infrastructure expansion, workforce development, natural gas line improvements and rural tourism and job growth efforts in Southwest Virginia. Recipients include Henry County, the Harvest Foundation and Southwest Virginia Gas Co.; New River/Mount Rogers Workforce Development Area Consortium Board in Radford; The Health Wagon in Wise County; the Lenowisco Planning District Commission; The Center for Rural Virginia; and the New River Valley Regional Commission. (
VirginiaBusiness.com)
Ballad Health in early November announced the creation of The Appalachian Highlands Care Network, an effort designed to improve care and increase health care access for uninsured people in Ballad’s 21-county service area. The program includes all Ballad hospitals, outpatient services and physician practices, along with a regional network of community health care providers and primary care services offered through regional safety net clinics, health departments and federally qualified health centers. (
SWVAToday.com)
In mid-October, Dharma Pharmaceuticals formally opened in the Bristol Mall to patients seeking medical cannabis treatment. The firm is the first medical processor to open in Virginia for registered medical cannabis patients to receive treatment. Pharmacists will meet with patients to discuss medical cannabis and determine treatment courses for specific conditions. While located in Southwest Virginia, Dharma Pharmaceuticals will be open to all eligible Virginia patients. (Bristol Herald Courier)
Bristol voters on Election Day approved Hard Rock International’s planned casino complex by the widest margin of victory of the four approved casinos across Virginia. More than 71% of Bristol voters supported plans for Hard Rock to establish a casino, hotel, entertainment and convention center at the former Bristol Mall, which ceased operations in 2017. The Bristol project is forecast to attract millions of visitors and create up to 2,000 jobs, as well as generating between $15 million and $20 million in annual tax revenues for the city, and millions more in gaming tax revenues for the city and 11 other localities in Southwest Virginia. (Bristol Herald Courier)
In mid-November, Washington County-based highway guardrail manufacturer SPIG Industry LLC announced plans to invest $7.9 million to expand its operations in the Bristol-Washington Industrial Park, creating 113 jobs. Formed in 2007 by brothers Joshua and Chris Harman, SPIG Industry has been working since 2011 to develop the SGET end terminal, a safety device located at the end of guardrails that absorbs and dissipates energy created during a head-on automobile or truck crash. SPIG Industry plans to build three production plants and a welding shop, as well as a new rail spur line to continue development work on the SGET product. (
VirginiaBusiness.com)
A grant for up to $1.2 million in infrastructure improvements to the Red Onion Industrial Site in Dickenson County was approved by the Virginia Coalfield Economic Development Authority board in early November. The funds, which will be given to the Dickenson County Industrial Development Authority, will be used to help finance site grading, site development, access road construction and storm drainage improvements at the Red Onion site, which is also known as the Coalfield Regional Industrial Park. The funds will also be used for the extension of utilities, including water, sewer, electric, natural gas and broadband to the property. (
VirginiaBusiness.com)
PEOPLE
Lenowisco Health District leader Dr. Eleanor Sue Cantrell announced in early November she will retire Jan. 1, 2021. She became director in 1991 and served for several years as interim director of the Cumberland Plateau Health District until her permanent appointment in 2016. The search for the next health director for the health districts has begun. (The Coalfield Progress)
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