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Report challenges tax revenue projections for Stokes County data center

Cars drive past data centers in Virginia
Ted Shaffrey
/
AP
In this file photo, cars drive past data centers in Ashburn, Virginia, July 16, 2023.

A new report claims a proposed data center in Stokes County will generate far less tax revenue than the developers have projected.

Economist Michael Hicks of Shenandoah University estimates that Project Delta will generate between $20 and $40 million in tax revenue over 10 years. The developer, Engineered Land Solutions, has said it could generate that much every year.

The disparity comes down to a disagreement over how big the project will ultimately be. Hicks based his estimates on a $1 billion investment. ELS has said that number could top $7 billion at full build-out.

“That is just I think not consistent with the observation of data center deployments around the country," Hicks said at a press conference. "It's just not plausible.”

In a statement, ELS CEO Drew Nations said the report doesn’t adequately explain why the project wouldn't reach full build-out.

"We stand by our tax revenue projections of $40 million per year at full build-out — enough to make Stokes County teachers among the highest-paid in North Carolina while simultaneously cutting property taxes," he said.

The research was funded by the Southern Environmental Law Center, which previously sued Stokes County over the project's rezoning.

April Laissle is a senior reporter and editor at WFDD. Her work has been featured on several national news programs and recognized by the Public Media Journalists Association and the Radio Television Digital News Association. Before joining WFDD in 2019, she worked at public radio stations in Ohio and California.

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