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Rezoning denial for Marchetti project prompts developer pause, EDA says

Economic Development Authority of Hanover County · July 8, 2026

Summary

After the Board of Supervisors denied rezoning for the Marchetti data center, EDA staff reported a developer decided to pause a data center project; the denial cited concerns about water and energy.

Deputy Director Armon Smith told the Economic Development Authority that the Board of Supervisors voted to deny rezoning for the Marchetti project and that, "Due to the vote on the Marchetti project, a developer has decided to pause moving forward with a data center project." The EDA discussed concern that the denial could negatively affect future data center development in the county.

Smith said reasons for the denial included concerns related to water and energy. The Planning Commission also denied a conditional use permit for a speculative warehouse because of building size; that warehouse project will go before the Board of Supervisors at its July meeting. The Authority recommended members meet their supervisors to discuss how the EDA should proceed after the Marchetti decision.

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