Stafford County supervisors want data centers removed from the county’s technology-zone incentive program, arguing the extra tax breaks are no longer needed and could further cut into projected revenue once projects are built.
The discussion came during a joint meeting of the Board of Supervisors and the Economic Development Authority on Sept. 29. No vote was taken. Supervisors directed staff to place the item on the already-scheduled Oct. 27 work session, where the board will also discuss removing by-right status for data centers in the M-2 zoning district.
Chairman Deuntay Diggs and other members said data centers are already locating in Stafford without the local technology-zone benefit. Keeping the option open, they said, risks letting companies apply after construction and reduce the revenue the county is counting on in future years.
“We don’t need additional incentives,” Diggs said. “I think we’ve given up enough already.”
Supervisor Crystal Vanuch and others raised the same concern, noting public frustration over long-term data-center deals, including those tied to Amazon. One supervisor described the Amazon agreements as lasting roughly 30 years.
Economic Development Director Liz Barber told the boards that no data center has applied under the technology-zone ordinance since it was created. Marketing materials for the zone do not list data centers as a targeted sector. Applications still require Board of Supervisors approval on a case-by-case basis; a public hearing is not automatic simply because an application reaches the board.
Barber said the county retains final say and that any incentive awarded through the zone would likely be smaller than a customized deal a company might bring forward. Deputy County Administrator Donna Krauss added that the board can still say no even if an application is filed.
Dr. Pamela Yeung, Garrisonville District, urged a broader look at large exemptions, not just data centers. She said the county is also exempting warehouses over 100,000 square feet and those over 200,000 square feet from merchants capital tax and asked that those provisions be reviewed at the same time so loopholes are closed consistently.
Staff confirmed that a fuller discussion of tax rates, exemptions, and the board’s flexibility is already planned as part of the upcoming budget process.
Supervisors acknowledged that some residents view the loss of new data-center interest after recent ordinance changes as a positive outcome. The consensus at the joint meeting was simply to stop offering an additional local incentive path that is no longer viewed as necessary.
The technology-zone discussion will return with the M-2 by-right item on Oct. 27.
