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DATA CENTERS
Statement of Issue
The City of Newport News is examining the development of a comprehensive technology infrastructure strategic
plan to become the technological hub of the region. Evaluation of the role of municipal data centers to support
digital infrastructure, cybersecurity, and service delivery, particularly considering the increasing demands for
data storage, disaster recovery, and smart city initiatives will be key to determining the city’s readiness. This
includes compliance with evolving state regulations and understanding how other Virginia localities are
managing data center development.
Background
The Hampton Roads region has many existing attributes needed to become a technological hub including
broadband connectivity, access to subsea cables, and a regional fiber network ring under development.
Becoming a technological hub would provide significant benefits to businesses, residents, and communities.
However, there is not an abundance of data centers in the region, which are a key component to becoming a
technological hub.
Data centers are centralized facilities that house computing and networking equipment to store, process, and
disseminate data. Traditionally used by large enterprises, they are now critical to municipal operations, enabling
everything from public safety communications to utility management. Over the past decade, cities have
increasingly adopted hybrid models—combining on-premises data centers with cloud services—to balance
control, cost, and scalability. Newport News has historically relied on a mix of internal IT infrastructure and third-
party hosting but faces growing pressure to modernize.
The development of a comprehensive technology infrastructure strategic plan is to ensure the city is
“datacenter” ready. By thinking holistically, the city would be better positioned not only to attract data centers
but also to capture the broader benefits of the digital economy for its government, organizations, schools,
residents, businesses, and residents in every neighborhood.
Relevant Analysis
Funding History: Investments in IT infrastructure have been incremental, with limited capital allocated to
physical upgrades or redundancy systems.
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Associated Measures: The city’s IT strategic plan emphasizes cybersecurity, business continuity, and
digital equity.
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Program Changes: Recent shifts toward cloud-based platforms (e.g., Microsoft 365, GIS hosting) have
reduced reliance on legacy systems but introduced new risks around vendor lock-in and data
sovereignty.
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State Regulatory Context:
o Virginia’s 2025 legislative session introduced new oversight for data centers, including House
Bill 1601 and Senate Bill 1449, which require localities to assess the environmental and
community impacts of high-energy-use facilities (HEUFs), such as data centers. Although the
Governor vetoed the legislation stating that it limits local discretion, the measures proposed in
the legislation could be considered by the city in evaluating data center development proposals.
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