Commentary: The future is here. Will Virginia embrace it?
By THEODORE L. CHANDLER JR., THOMAS R. FRANTZ AND JOHN W. MARTIN
Virginia is at a crossroads. The digital revolution is here, and artificial intelligence is reshaping industries, economies and the global competitive landscape.
Yet, while states and localities worldwide are aggressively investing in digital infrastructure to fuel innovation and prosperity, Virginia’s current debate on data centers risks stalling investment, limiting our potential and leaving us behind.
It’s time to broaden the conversation beyond data centers. Data centers are just one part of Virginia’s digital infrastructure ecosystems — from Northern Virginia to Southwest Virginia to the I-64 Innovation Corridor from the Richmond region to Hampton Roads.
These ecosystems include interconnected intra- and intercity terrestrial networks, internet exchanges, network rings, reliable energy systems, subsea cables and data centers of all types and sizes.
It takes all these digital assets, seamlessly working together, to provide faster, more reliable internet services that support personal use of internet and innovative business practices like cloud computing, big data analytics, Internet of Things, and now artificial intelligence — a once-in-a-generation technological breakthrough.
AI is poised to unlock immense economic value across industries and significantly boost GDP at local, state and national levels. Two recently announced initiatives, China’s DeepSeek AI and the $500 billion Stargate Project, underscore the vast opportunities ahead.
GlobaLOCALization is the key to Virginia’s AI future. As the global race for AI and digital dominance accelerates, the winning playbook is becoming clear.
The future of harnessing AI in any region depends on powerful, interconnected digital infrastructure ecosystems capable of handling vast real-time data flows. Success hinges on a network of local data centers close to end users and high-speed, local terrestrial networks, all seamlessly linked to the global internet through exchanges and subsea cables.
GlobaLOCALization — combining local digital strength with global connectivity — is the new imperative for regions that want to lead in AI and the digital economy.
Top internet architects believe no single locality can fully achieve GlobaLOCALization alone. Experts predict that the future belongs to regions where nearby localities break down barriers, collaborate across borders and strategically leverage complementary digital assets to create powerful, interconnected digital infrastructure ecosystems.
The I-64 Innovation Corridor is already at work building this model, integrating the digital ecosystem assets from the Richmond region (RVA) and Hampton Roads (the 757) into a unified global internet hub.
Virginia has a rare opportunity to build one of the world’s most advanced state-level digital infrastructure ecosystems. Imagine connecting the I-64 Innovation Corridor’s global internet hub concept with Northern Virginia’s digital backbone and other emerging tech hubs across the state — transforming Virginia into a global economic powerhouse.
This vision would unlock unparalleled opportunities for residents, businesses and organizations across the commonwealth.
To secure Virginia’s future, three immediate actions are necessary:
Here in Virginia, our policy discussions should be driven by a bold vision for the future. Instead of focusing on restrictive measures that could stall digital investment, let’s work together to build one of the most dynamic digital infrastructure ecosystems in the world. To achieve this, Virginia must take three immediate actions:
• Address the sunset law: Extend or eliminate the 2035 sunset law on state sales and use tax exemptions for data centers. The uncertainty created by the 2035 deadline could divert critical investment to other states that offer greater stability and incentives. Resist measures tied to any extension as they would make Virginia less competitive in attracting digital infrastructure investment.
• Empower localities to shape their digital future: Each of Virginia’s digital ecosystems is unique, with different strengths, assets and opportunities. Decisions should be made locally, not through one-size-fits-all statewide restrictions. Instead of statewide limitations that hinder growth, Virginia’s jurisdictions should be empowered to develop strategies tailored to their regional digital assets and goals.
• Support the SCC’s energy planning process: Support the State Corporation Commission’s regulatory process to ensure our energy systems can reliably meet the growing demands of digital infrastructure while maintaining system resilience.
We need to take these strategic actions in a way that is consistent with building well-designed, future-ready digital infrastructure ecosystems that balance legitimate quality-of-life concerns with this once-in-a-lifetime opportunity to lead in artificial intelligence.
Act now, or fall behind. Virginia’s economic future is on the line. From 2013 to 2023, Virginia’s GDP growth rate lagged every other Southern state. To regain momentum, we must act decisively.
While London, Hong Kong, Marseille and dozens of other digital cities are doubling down on digital infrastructure, Virginia risks stalling progress with restrictive policies. We cannot afford to slow down when AI, innovation and economic leadership are at stake.
The decisions made today will shape Virginia’s economic trajectory for decades — just as the construction of Interstate 64 and Interstate 95 transformed our state in the 1960s.
Let’s go big, go bold, or risk being left behind.
Theodore L. Chandler Jr. and Thomas R. Frantz are the co-chairs of RVA757 Connects’ board. John W. Martin is the president and CEO. RVA757 Connects is a coalition of top leaders in business, higher education, and community organizations from the Richmond area (RVA) and Hampton Roads (757) region. Contact Chandler at ted@nrv.vc, Frantz at tfrantz@williamsmullen.com and Martin at john.martin@rva757connects.com.