Fluvanna County, VA 1,540 MW Power Plant Expansion: Taxes & Data Centers vs. Tranquility

Fluvanna County, Virginia, is facing a defining decision over its economic future as Expedition Generation Holdings, an affiliate of Tenaska Inc., proposes building a new natural gas power plant that could reshape the county’s finances — and its rural identity.

The $2.4 billion project, known as the Expedition Generating Station, would sit near Tenaska’s existing Virginia Generating Station and promises hundreds of millions in new tax revenue. Yet, it has stirred deep opposition from residents concerned about noise, water use, and environmental impacts.

A 1,540-Megawatt Proposal

The Expedition Generating Station would be a natural gas-fueled combined cycle power plant capable of generating up to 1,540 megawatts, enough to power about 1.5 million homes, according to the company.

The project requires a Special Use Permit because the land is currently zoned for general agriculture. The 425-acre site would host the physical plant on about 50 acres, while roughly 87% of the land would remain open space. To soften its visual impact, Tenaska plans a 300-foot-wide tree buffer along property lines and says it will place another 350 acres of nearby land under conservation protection.

Tenaska is also seeking a zoning text amendment that would allow taller smokestacks — increasing the height limit from 145 feet to up to 199 feet, or 230 feet under specific air-quality requirements. The plant is projected to discharge an average of 1.5 million gallons of water per day, subject to state and federal permitting.

Economic Impact: A $250 Million Lifeline

Fluvanna County officials view the project as a major fiscal opportunity. The county currently draws about 70% of its tax revenue from homeowners, and leaders have long sought to diversify that base by growing commercial and industrial tax contributions.

Tenaska, already among the county’s largest taxpayers, estimates the new plant would generate $247.7 million in local taxes over 30 years. During its first five years of operation, it’s projected to bring in $14.3 million annually, before stabilizing at an average of $8.3 million per year — roughly 12% of the county’s projected fiscal 2026 operating budget.

Powering the Data Center Boom

The project reflects the growing pressure on Virginia’s power grid as the state’s data center industry continues its rapid expansion. Virginia now hosts nearly half of all U.S. data centers, making it the world’s largest hub for cloud and computing infrastructure — and one of the most energy-hungry markets in the country.

To manage that growth, Fluvanna County is moving to tighten oversight. A proposed amendment to its zoning code would require data centers in industrial districts to obtain a Special Use Permit, ending their current “by-right” status. The measure is expected to go to public hearing in November 2025, giving local officials greater control over siting and infrastructure impacts.

Approvals, Pushback, and Next Steps

Tenaska’s proposal and the related zoning amendments came before the Fluvanna County Planning Commission on October 7, 2025. Planning staff determined that the project partially aligns with the county’s Comprehensive Plan, paving the way for consideration by the Board of Supervisors.

The next step is a public meeting scheduled for November 18, 2025, where the Board of Supervisors will consider the Special Use Permit and zoning amendment requests, allowing residents to voice concerns before a final decision.

Noise: The Central Controversy

For nearby residents, the issue isn’t abstract — it’s audible. Many describe the constant hum from Tenaska’s current facility as an “unwanted soundtrack” that has persisted for years. Some recall a past noise study that partly attributed the sound to “bugs,” a claim that has since become a symbol of mistrust between the community and the developer.

Tenaska says it has taken the criticism seriously. The company commissioned two independent acoustic studies showing that the combined noise levels from both plants would meet county standards: 60 decibels at the property line and 50 decibels at nearby homes. With additional noise-dampening measures — including sound enclosures and quieter cooling systems — the company says residential noise levels could fall as low as 37 to 47 decibels, similar to background suburban noise.

Still, residents remain skeptical, arguing that final environmental impact studies will only occur after local approvals. Tenaska says it must obtain all necessary state and federal permits, including air and water authorizations, before construction can begin.

The Broader Debate

Fluvanna’s fight mirrors a growing challenge across Virginia: balancing the state’s surging energy and data demands with the character of the communities that host them.

For county officials, Tenaska’s project represents a chance to strengthen finances and modernize infrastructure. For residents, it’s a test of how much noise and industrialization a quiet county should endure in exchange for economic growth.