CleanArc Data Centers has officially launched construction on its massive $3 billion hyperscale campus in Caroline County, introducing one of the largest data center investments ever announced in the Greater Fredericksburg region. The project, known as VA1, marks another major step forward in Virginia’s continued dominance in the global data center market.
The Arlington, Texas–based developer confirmed the groundbreaking through coordinated announcements with Virginia Gov. Glenn Youngkin’s office, setting the stage for a multi-phase deployment expected to span the next decade. Designed to deliver 900 megawatts of grid capacity, VA1 will be built in three major segments: 300 MW in 2027, another 300 MW in 2030, and the final 300 MW between 2033 and 2035.
The new campus adds to the robust pipeline of hyperscale projects underway across Virginia as the sector leans heavily on AI-driven demand to sustain construction activity amid broader softness in traditional nonresidential markets. The state continues to attract operators expanding or launching new campuses, further reinforcing its national leadership in digital infrastructure.
Environmental performance is central to VA1’s design plan. CleanArc says the campus will operate with closed-loop cooling to sharply reduce water use, and it will integrate architectural strategies that help limit noise and light pollution for surrounding communities. The project will also rely on modular and pre-engineered components, plus offsite manufacturing, to accelerate schedule timelines and reduce the challenges associated with on-site construction.
Gov. Youngkin underscored the scale and significance of the announcement, noting both its economic and strategic regional impacts. “Virginia is the data center capital of the world, and I am thrilled that CleanArc has selected Caroline County as the site to invest $3 billion for their newest data center campus,” Youngkin said in the release. “This is the largest announced economic investment in the history of Caroline County and a testament to the results that come from strong collaboration between local and state leaders and industry partners.”
The VA1 project also contributes to a broader pattern of billion-dollar data center investments across the state. Roughly 50 miles away in Stafford County, Vantage Data Centers recently unveiled a $2 billion plan for a three-building campus. Meanwhile, large contractors continue to benefit from the sector’s momentum: Jacobs, the Dallas-based construction and engineering giant, reported record backlog levels during its fiscal fourth quarter, with CEO Bob Pragada saying the company’s data center pipeline has increased five-fold thanks to sustained hyperscale growth.
With grading and early construction now underway, VA1 stands poised to become a cornerstone of Virginia’s future AI-powered infrastructure network — and a landmark investment for Caroline County as the region accelerates its position in the digital economy.
Originally reported by Sebastian Obando in Construction Dive.
