- Posted onNovember 24, 2025
- Jessica I. Marschall, CPA, President and CEO MAS LLC, The Green Mission Inc., GM-ESG and Probity Appraisal Group
Virginia stands at the epicenter of a generational energy transformation driven by unprecedented data center expansion, artificial intelligence infrastructure demands, and evolving utility capacity constraints. The November 12, 2025 Regionalism Matters Energy Forum, featuring John Hewa, President and CEO of Rappahannock Electric Cooperative (REC), crystallized both the extraordinary opportunities and substantial challenges facing businesses, municipalities, and cooperatives across the Commonwealth. For clients of MAS LLC Tax Advisory and GM-ESG, these developments represent critical inflection points requiring proactive strategic planning across tax optimization, capital investment, workforce development, and environmental compliance frameworks.
John Hewa’s keynote presentation at the Spotsylvania Courthouse Chamber of Commerce event highlighted transformational metrics that underscore Virginia’s position as a national technology hub. REC is currently connecting over 4,500 new accounts annually while managing service delivery across 22 counties including Stafford, Spotsylvania, and surrounding jurisdictions in the Fredericksburg region. The cooperative’s current average residential rate of 15.10 cents per kilowatt hour positions it slightly above the Virginia average of 14.71 cents but below the national average of 16.22 cents. However, Hewa emphasized concerning trends: Virginia fell eight spots nationally in electricity affordability rankings last year, reflecting the strains of accelerating demand against infrastructure capacity.
The forum identified several critical pressure points. Energy demand in certain service areas is projected to rise twentyfold due to technology-driven growth, particularly data center expansion, advanced manufacturing, and AI computational requirements. REC’s emphasis on grid modernization, fiber deployment integration, and sustainability planning reflects the cooperative’s recognition that traditional utility models must evolve rapidly. Reliability, local generation capacity, and transmission efficiency have emerged as defining competitive factors for economic development—businesses evaluating Virginia locations now scrutinize power infrastructure with the same intensity previously reserved for transportation access and workforce availability.
Recent announcements underscore the magnitude of transformation occurring in the Fredericksburg region. In November 2025, Vantage Data Centers announced a $2 billion investment to develop VA4, an 82-acre campus in Stafford County featuring three buildings totaling 929,000 square feet and 192 megawatts of capacity, with the first building scheduled for completion in late 2027. This follows STACK Infrastructure’s January 2025 announcement of a landmark 1+ gigawatt Stafford Technology Campus spanning 500 acres with 19 planned data centers across four sub-campuses, drawing committed power from six 300-megawatt substations supplied by Dominion Energy. Additional proposals include Peterson Companies’ planned 5.5 million square foot data center park on 524 acres near Falmouth.
These developments represent more than construction activity—they signal fundamental shifts in regional infrastructure capacity, utility planning, tax revenues, and economic competitiveness. Market data from DC Byte demonstrates how dramatically growth has accelerated outside traditional Data Center Alley in Loudoun County: capacity in outlying areas grew from approximately 2,300 megawatts in 2019 to over 29,000 megawatts by 2024, with substantial expansion concentrated in Stafford, Spotsylvania, and Culpeper counties where land availability and power access converge.
For businesses planning capital investments, acquisitions, or expansions in the region, these infrastructure commitments create both opportunities and constraints. The STACK development alone is projected to generate over $80 million in annual tax revenue at full buildout while eliminating $58 million from Stafford County’s Capital Improvement Program through developer-funded water and sewer infrastructure upgrades. Understanding how these mega-projects affect local utility capacity, tax assessments, zoning frameworks, and incentive availability becomes essential for strategic planning.
Virginia’s comprehensive economic development incentive structure provides multiple pathways for businesses in energy, technology, and advanced manufacturing sectors operating in Stafford County and surrounding jurisdictions. Key programs relevant to energy-intensive and technology-focused businesses include:
Commonwealth’s Opportunity Fund: This discretionary grant program provides deal-closing incentives for competitive projects meeting minimum job creation, salary, and capital investment thresholds. Qualifying companies also access the New Company Incentive Program, effectively exempting new-to-state businesses from Virginia income tax for six years—a substantial benefit for companies establishing operations in the data center supply chain or energy services sector.
Major Business Facility Job Tax Credit: Businesses expanding in or relocating to Virginia may qualify for $1,000 income tax credits per new full-time job created above threshold levels of 50 jobs statewide or 25 jobs in economically distressed areas and Enterprise Zones. Given the workforce demands of data center operations and supporting infrastructure, this credit presents meaningful value for qualifying employers.
Technology Zones: Stafford County has authority to establish technology zones offering expedited permitting, fee waivers, local tax incentives, special zoning treatment, and regulatory exemptions for qualified businesses in targeted industries. With the county actively considering a data center overlay district similar to Prince William County’s model, understanding zone designation opportunities becomes strategically important.
Green and Alternative Energy Job Creation Tax Credit: Businesses creating new positions in qualifying energy sectors—including advanced manufacturing, energy technology, and environmental technology—can access tax credits linked to job creation and wage thresholds. For companies in clean energy installation, battery storage, or grid modernization technologies serving the data center sector, this program offers targeted support.
Worker Retraining Tax Credit: Eligible businesses receive income tax credits equal to 30% of expenditures for worker retraining, with enhanced rates for STEM/STEAM field training. Given the specialized technical skills required for data center operations, electrical infrastructure, and advanced energy systems, this credit provides direct offset for workforce development investments.
Research and Development Tax Credit: Businesses conducting qualified R&D may claim credits equal to 15% of the first $300,000 in expenditures (or 10% of incremental spending), with enhanced 20% rates and $60,000 caps for research conducted with Virginia colleges and universities. Energy technology companies developing innovative solutions for efficiency, storage, or grid integration should evaluate R&D credit opportunities.
Energy Efficiency and Renewable Energy Incentives: Virginia DEQ maintains extensive programs including property tax exemptions for solar energy equipment, energy-efficient buildings, alternative energy generation equipment, and certified pollution control facilities. Local governments possess statutory authority to partially or fully exempt qualifying property from local property taxes—a significant consideration for businesses investing in renewable generation, cogeneration, or advanced efficiency systems.
Federal Incentives: The Investment Tax Credit (ITC) and Production Tax Credit (PTC) for solar and qualifying renewable energy systems remain available, alongside USDA Rural Energy for America Program (REAP) grants and loan guarantees. While the residential federal solar tax credit is scheduled to expire December 31, 2025, commercial and industrial incentives continue under current law. Businesses should coordinate federal and state incentive strategies to maximize total benefit and ensure compliance with respective program requirements.
Utility-Specific Programs: Dominion Energy and Washington Gas offer commercial incentives for high-efficiency equipment, energy audits, and demand response participation. REC provides various rate structures including time-of-use options, net metering riders for renewable generation, and demand response programs that can meaningfully reduce operating costs for qualifying businesses.
WORKFORCE DEVELOPMENT AND TRAINING ECOSYSTEM
Energy sector workforce development has emerged as a critical economic development priority across Virginia. The state’s registered apprenticeship infrastructure, clean energy training programs, and community college partnerships create pathways for businesses to develop skilled talent pipelines while accessing financial support.
Virginia Works’ HIRED Apprenticeship Fund provides up to $4,000 per apprentice for registered apprenticeship training and $2,000 for supportive services in priority sectors including clean energy, advanced manufacturing, and repair and maintenance. Eligible businesses can access funding for up to two net new apprentices, covering training costs, infrastructure development, and supportive services including transportation, uniforms, tools, and equipment. Applications operate on a reimbursement basis through Virginia’s State Apprenticeship Expansion Formula (SAEF) grant totaling $1.136 million from the U.S. Department of Labor.
Virginia Energy’s Clean Energy Workforce Programs expand specialized training access through industry-recognized certifications and collaborations with technical schools, community colleges, labor organizations, and industry experts. Programs incorporate apprenticeships and mentorships leading to nationally recognized credentials in high-demand careers. Virginia Energy Connect (VEConnect) serves as a centralized resource for contractors and industry professionals accessing workforce development opportunities.
Regional examples demonstrate program effectiveness. Got Electric’s solar apprenticeship program in partnership with Secure Solar Futures and Mountain Empire Community College has trained approximately three dozen apprentices since 2022, providing paid work experience, free equipment, transportation subsidies, and community college credits. Apprentices work on diverse solar projects including rooftop, carport, and ground-mounted installations while earning while they learn. Similar registered apprenticeship models exist across electrical, HVAC, and construction trades essential to data center development and energy infrastructure projects.
For businesses planning workforce expansion, registered apprenticeship programs offer strategic advantages: structured training aligned with specific operational needs, nationally recognized credentials enhancing talent retention, financial incentives offsetting development costs, and demonstrated pathways from high school through community college to skilled technical positions. Laurel Ridge Community College, serving the Fauquier and Rappahannock region, provides apprenticeship-aligned training using NCCER curriculum that delivers standardized, portable national credentials.
Understanding current and projected energy costs forms an essential component of business planning and location analysis in the Fredericksburg region. REC’s residential access charge recently increased from $14.70 to $16.50 monthly—the lowest among Virginia electric cooperatives—while average residential members using 1,187 kWh monthly experienced approximately 4% bill increases in 2024 reflecting infrastructure investment requirements. The cooperative’s average monthly residential bill of $184.28 exceeds both Virginia and national averages, attributed partly to service territory characteristics and grid modernization investments.
Commercial and industrial rate structures offer multiple options for managing costs. REC provides time-of-use rates rewarding customers who shift consumption to off-peak periods, demand response programs paying participants for reducing usage during peak demand events, and specialized rates for large industrial accounts with dedicated substations. The cooperative’s summer savings program provides bill credits of 75 cents per kilowatt-hour saved during designated high-demand periods—meaningful incentives for businesses with operational flexibility.
Businesses should evaluate rate structure optimization opportunities as part of comprehensive energy management strategies. Time-of-use rates may substantially reduce costs for operations with flexible production schedules or battery storage enabling load shifting. Demand response participation generates revenue while supporting grid reliability. Net metering arrangements for on-site renewable generation provide retail rate credits for excess production. Combined with utility incentive programs for high-efficiency equipment and federal/state tax benefits for renewable energy investments, strategic energy planning can significantly impact operating cost trajectories.
For energy-intensive operations such as data centers, manufacturing facilities, or advanced technology companies, power supply reliability and cost predictability represent critical location factors. The substantial infrastructure investments by STACK, Vantage, and other developers—including dedicated substations and transmission capacity—signal commitment to supporting long-term growth. However, businesses must assess whether existing or planned capacity aligns with their operational requirements and whether available incentives justify location decisions given energy cost structures.
The convergence of massive data center investment, utility infrastructure transformation, comprehensive tax incentive frameworks, and evolving workforce development programs creates a complex strategic landscape requiring integrated advisory approaches:
Capital Investment Planning: Businesses evaluating Virginia locations must model energy infrastructure availability, cost trajectories, and incentive benefits into site selection and financial projections. MAS LLC’s tax advisory capabilities can structure investments to maximize federal and state credits, optimize entity selection for incentive eligibility, and coordinate timing strategies for credit utilization. GM-ESG’s corporate decommissioning and ESG reporting expertise helps businesses evaluate lifecycle costs, sustainability compliance requirements, and environmental risk factors increasingly scrutinized by lenders and investors.
Tax Credit Optimization: The layering of multiple incentive programs—Commonwealth’s Opportunity Fund, Major Business Facility Job Tax Credit, Worker Retraining Tax Credit, R&D Credit, and energy-specific property tax exemptions—requires careful planning to maximize total benefit. MAS LLC specializes in documenting credit eligibility, preparing supporting analyses for agency review, structuring transactions to preserve incentive access, and managing compliance requirements across multiple programs. For companies making substantial capital investments, comprehensive incentive modeling should precede site acquisition and equipment procurement.
Workforce Development Integration: Registered apprenticeship programs offer both talent pipeline development and direct financial benefits through HIRED Fund access and Worker Retraining Tax Credits. Businesses should coordinate HR planning with Virginia Works consultants and community college partners to establish programs capturing available funding while building necessary technical capabilities. MAS LLC can advise on tax treatment of training expenditures and credit qualification while GM-ESG evaluates how workforce development commitments enhance ESG performance metrics and stakeholder relationships.
Energy Management and Sustainability Strategy: As utility costs rise and ESG scrutiny intensifies, integrated approaches combining operational efficiency, renewable generation, incentive capture, and transparent reporting become competitive differentiators. GM-ESG’s expertise in sustainable business practices and ESG reporting helps clients document energy performance, evaluate renewable investment opportunities, assess carbon reduction pathways, and communicate commitments to investors, lenders, and community stakeholders. MAS LLC can model tax implications of efficiency investments and renewable projects while documenting ITC/PTC qualification and state incentive eligibility.
Regulatory and Compliance Navigation: The rapid evolution of Virginia’s energy landscape—including potential data center overlay district creation in Stafford County, net metering rule changes, and utility rate adjustments—requires ongoing monitoring and strategic adaptation. Businesses must understand how regulatory developments affect operating costs, expansion options, and competitive positioning. Combined MAS LLC and GM-ESG capabilities provide integrated advisory spanning tax compliance, incentive preservation, environmental permitting, and ESG disclosure requirements.
Infrastructure Risk Assessment: While the data center boom signals regional economic vitality, it also creates potential constraints on available power capacity, transmission infrastructure, water resources, and transportation systems. Businesses should conduct thorough due diligence on utility commitments, capacity reservations, infrastructure timelines, and contingency plans for supply disruptions. GM-ESG’s corporate decommissioning experience and infrastructure analysis capabilities complement MAS LLC’s financial and tax advisory to provide comprehensive risk evaluation.
Community and Stakeholder Engagement: Major infrastructure projects generate both economic benefits and community concerns regarding environmental impacts, traffic, noise, and resource consumption. Proactive stakeholder engagement, transparent communication of economic contributions, and demonstrated commitment to responsible development increasingly influence project approval timelines and operating license maintenance. GM-ESG can guide clients in developing stakeholder engagement strategies, environmental impact mitigation plans, and community benefit frameworks that support both business objectives and social license maintenance.
Virginia’s energy transformation represents more than infrastructure change—it signals fundamental shifts in how businesses must approach location strategy, capital investment, workforce development, and stakeholder engagement. John Hewa’s forum presentation articulated the urgency facing utilities, businesses, and communities: demand is accelerating faster than capacity expansion, affordability pressures are mounting, and competitive positioning increasingly depends on energy resilience and sustainability performance.
For Stafford County and the broader Fredericksburg region, the concentration of multi-billion-dollar data center investments creates unprecedented opportunity alongside infrastructure challenges. Businesses positioned to leverage comprehensive tax incentives, workforce development programs, and utility partnerships while managing energy cost exposure and environmental compliance requirements will capture competitive advantages as the region establishes itself as a meaningful digital hub beyond traditional Data Center Alley.
MAS LLC Tax Advisory and GM-ESG remain committed to helping clients translate these market and infrastructure shifts into strategic advantages. Whether structuring new investments to maximize incentive benefits, developing registered apprenticeship programs that build talent pipelines while accessing funding, optimizing energy management to reduce costs and enhance sustainability performance, or navigating complex regulatory frameworks, our integrated capabilities provide the comprehensive advisory businesses require in Virginia’s rapidly evolving energy economy.
The stakes are substantial: Virginia’s ability to align policy, technology, utility capacity, workforce development, and environmental stewardship will determine whether the Commonwealth maintains its position as a top state for business or whether infrastructure constraints and cost pressures erode competitive advantages. Businesses that proactively engage with this transformation—leveraging available incentives, investing in workforce capabilities, optimizing energy strategies, and demonstrating commitment to sustainable growth—will be positioned to thrive as Virginia’s energy landscape continues evolving.
For strategic consultation on tax optimization, incentive capture, workforce development planning, or ESG strategy development in Virginia’s energy sector, contact:
MAS LLC Tax Advisory
Jessica Marschall, CPA, President & CEO
Specializing in tax law, valuation methodology, and sustainable business practices
GM-ESG
Corporate Decommissioning and ESG Reporting
Expertise in infrastructure analysis, environmental compliance, and stakeholder engagement
© 2025 MAS LLC and GM-ESG. This article is provided for informational purposes and does not constitute legal, tax, or investment advice. Readers should consult qualified professionals regarding specific circumstances.
