What's Happening?
The Danville City Council has approved a code amendment allowing data centers to operate within city limits. This decision follows inquiries from data center operators and aims to attract such facilities
to the area. The code change specifies that data centers can be located in three industrial parks: Airside Industrial Park, Cyber Park, and Riverview Industrial Park. The city is also considering raising the tax rate for data centers from 25 cents to $1.20 per $100 of assessed value, though no decision has been made. The city has developed an energy services agreement to manage the significant power demands of data centers, protecting the city from infrastructure costs if a project does not proceed.
Why It's Important?
Allowing data centers in Danville could stimulate economic growth and create job opportunities, positioning the city as a competitive location for tech infrastructure. The potential tax rate increase reflects a strategic move to balance attracting new businesses with generating revenue. However, maintaining a lower tax rate could provide a competitive edge over neighboring areas. The decision to allow data centers aligns with broader trends of expanding digital infrastructure to support growing data demands.
What's Next?
The city will continue to evaluate the proposed tax rate change, considering feedback from stakeholders and the potential impact on attracting data centers. The development of data centers will require collaboration with power providers to meet the high energy demands. The outcome of these discussions and decisions will shape Danville's role in the data center industry and its economic landscape.
