In 2007, Loudoun County, Virginia, faced an economic challenge with over 80% of its revenue derived from residential real estate. Buddy Rizer, from the county's economic development authority, was tasked with diversifying the revenue streams following the housing bubble burst.
Rizer identified an opportunity in the remnants of the dot-com bust. Loudoun County, previously home to AOL's headquarters, had abandoned infrastructure, including empty buildings and extensive fiber optic cabling. These resources, combined with proximity to Washington D.C., land availability, and a supportive local government and utility, made the county attractive for new tech investments.
The strategy focused on attracting data centers. This initiative led to Loudoun County becoming known as "Data Center Alley." The county now houses approximately 250 data centers within a small area, representing the highest concentration globally. This development significantly increased the commercial tax base, with over half of the county's tax revenue now coming from commercial sources.
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Loudoun County, Virginia, once reliant on residential real estate, shifted its economy by attracting data centers to fill abandoned dot-com infrastructure. This transformation led to the county hosting approximately 250 data centers, becoming the world's densest concentration, and significantly increasing its commercial tax base.