Could Virginia Beach Become the Next Mecca for Data Centers?

This map shows the route of transatlantic cables, circa 2012.

This map shows the route of transatlantic cables, circa 2012. Note: no Mid-Atlantic connections.

by James A. Bacon

Virginia Beach is finally getting its Tide — not the Tide light rail system, but MAREA, the Spanish word for tide, which happens to be the name of a transatlantic cable project recently announced by Facebook, Microsoft and Telefonica, the Spanish telecommunications giant, according to the Virginian-Pilot.

The 4,000-mile cable will have a capacity of 160 terabytes of data per second, the highest-capacity cable of its kind to be laid under the ocean. The cable will be operated by Telxius, a unit of Telefonica. The company also will build the first transoceanic fiber cable station in the MidAtlantic region, in Virginia Beach off General Booth Boulevard.

Also, according to the Virginian-Pilot, Telefonica recently announced construction of a 7,000-mile cable stretching from Brazil to Puerto Rico and VirginiaBeach.

Virginia Beach officials see an economic opportunity. Said City Councilman Ben Davenport, chairman of the Virginia Beach Broadband Task Force: “Having Microsoft, Facebook and Telefonica come into Virginia Beach is an exciting development for our city, and it helps us continue our mission of becoming one of the most connected cities in the world.”

Questions, questions. Most transoceanic cables serving North America land in New York and New Jersey. This is a first for the Mid-Atlantic. Just how big a coup for Virginia Beach is this? Will Virginia Beach businesses benefit from higher speed access to Europe? Will access to the two transoceanic cables make Virginia Beach a logical location for the placement of data centers? In particular, are Microsoft and Facebook likely to build data centers there?

Then there are the spin-off questions. How would the rise of a major cluster of data centers in Virginia Beach affect the demand curve for electricity in the Dominion Virginia Power service territory? Would Microsoft and Facebook want access to “green” electricity from solar and wind? Could demand from a cluster of data centers be parlayed into a market for offshore wind?

This development could be a game changer. It bears close watching.