Ruther Glen, Caroline County, Virginia, September 10, 2025- Caroline County is set to host one of the largest new data center projects in Virginia. CleanArc Data Centers Operating LLC, a Virginia-based subsidiary, announced plans to redevelop the former Virginia Bazaar site in Ruther Glen as a 650-acre data center campus, worth about USD 8.8 billion.
The development, called VA1, will include three huge buildings, each about 490,000 square feet in size. Together, they’ll bring more than 600 megawatts of data capacity, enough to power major cloud and AI operations.
The first phase is expected to deliver 200MW by the third quarter of 2026, with another 300MW coming online in mid-2027.
CleanArc is working with Rappahannock Electric Cooperative to build a 300MW substation on the site, with plans to double that capacity by 2030. The project is zoned for data centers, which should help speed up construction.
For Caroline County, the economic payoff could be significant. The campus is expected to create at least 50 permanent jobs, each paying about 150% more than the county’s average wage. Once fully operational, local officials estimate it will bring in more than USD 12 million in tax revenue each year.
To support the project, the county approved an incentive package in August. CleanArc and its tenants will receive a grant equal to 25% of the new tax revenue for 15 years. If the first data hall is running by September 30, 2027, the grant for that building will increase to 40% of tax revenue for the next 10 years.
CleanArc has also promised to keep sustainability at the center of the design. The company says the campus will be powered with renewable energy like wind and solar, use less water than a small office building, and impact less than one acre of wetlands, well below the permitted limit. The data halls will be built to limit noise and visibility from surrounding areas.
At the same time, state officials are keeping a close eye on the strain these massive projects place on the power and water systems of the County. A recent study by the Joint Legislative Audit and Review Commission warned of growing infrastructure challenges as more data centers come online.
By choosing Caroline County, the company is betting on new ground for Virginia’s booming data center industry, and doing it with promises of jobs, tax revenue, and a lighter environmental footprint.
