Danville council to weigh data center tax hike and new development code rules for tech facilities

Danville City Council is moving forward with two data center-related items that could reshape how large technology facilities are taxed and sited within the city. The council is weighing a proposal to raise the tax rate on data center equipment from 25 cents to $1.20 per $100 of assessed value, a change set to take effect in July if approved. The second item would add new data center-specific language to the city's development code, providing guidelines on facility placement, scale, and infrastructure requirements.

The actions follow a broader wave of data center inquiry and investment across the Virginia and North Carolina piedmont corridor, driven by demand from technology companies, cloud providers, and defense contractors. Danville officials have been working to balance economic development interest with questions about power grid load, water use, and community land-use compatibility.

The proposed equipment tax increase would significantly raise the local revenue contribution from any data center that operates in Danville — a consideration that has gained traction in neighboring jurisdictions as well. Greensboro City Council members also recently raised concerns about the pace of data center proposals in their region.

For businesses and residents tracking Danville's economic development trajectory alongside projects like the Hyatt Studios riverfront hotel and the Southern Virginia Megasite at Berry Hill, the data center vote represents another signal of the city's evolving industrial and commercial mix.

Source: Reporting based on Cardinal News, May 4, 2026, "Danville to consider data center tax increase", and Chatham Star-Tribune reporting on Danville council agenda items.