MANASSAS, Va. – City leaders say they were surprised to learn that the first tenant of the newly opened Brickyard Data Center on Godwin Drive won’t contribute to the city’s business personal property tax base as expected.
The data center, operated by Digital Realty Trust, opened earlier this year. Officials had projected millions in tax revenue from computer equipment expected to fill the site. But when tax paperwork arrived on April 14, 2025, city officials learned the first tenant is a bank—an industry that is exempt from paying business personal property taxes under Virginia law.
City Councilmen Mark Wolfe and Tom Osina, along with Deon Shamberger, a candidate for Manassas Commissioner of the Revenue, discussed the issue during the latest episode of Potomac Local Live. While the city will still benefit from increased real estate taxes—the site’s assessed value jumped from $6 million to $102 million—Wolfe called the situation disappointing, describing it as a long-term loss of potential revenue.
“I was not aware of the state code provision until this happened,” Wolfe said. “This dates back to 1984, long before data centers were even conceptualized.”
Shamberger questioned whether the new assessment is high enough, citing experts who believe the property could be worth between $225 million and $255 million, potentially translating to millions more in tax revenue.
Osina noted that the city had not budgeted any revenue from the Brickyard Data Center in its newly adopted fiscal year 2026 budget, so there’s no immediate budget shortfall. Still, both council members agreed the situation exposes weaknesses in state tax policy.
“This is really a state issue,” Wolfe said. “We plan to raise it in our legislative agenda and advocate for change, but it’s going to be an uphill battle.”
Osina added that cities have limited control over who occupies data center spaces and often aren’t informed about specific tenants. Both officials stressed that change will require action from the Virginia General Assembly.
Meanwhile, Shamberger said the issue has become a hot topic among voters ahead of the November election. “People are talking about this,” he said. “They see it on social media. It’s not something we can just ignore.”
The conversation also addressed rising residential tax bills. Wolfe highlighted the city’s effort to cover increased employee healthcare costs to stay competitive with nearby localities. “Nobody ever comes to us and says, ‘let’s have fewer police or fewer firefighters,’” Wolfe added.
Both council members advised other Virginia localities to thoroughly research the impacts of data centers and push for greater tenant transparency before approving similar projects.
To hear the full conversation, listen to the complete Potomac Local Live Podcast embedded below.
