Contentious Projections for Stokes County Data Center Spark Debate
Significant differences in tax revenue forecasts for a new data center in Stokes County have emerged, fueled by a recent report that challenges the developers’ optimistic estimates.
Economist Michael Hicks from Shenandoah University suggests the facility, known as Project Delta, will contribute between $20 million and $40 million in tax revenue over the next decade. This figure starkly contrasts with the annual $40 million projection claimed by the developer, Engineered Land Solutions (ELS).
The core of the discrepancy lies in the anticipated scale of the project. Hicks calculates his figures based on a $1 billion investment, while ELS envisions the project potentially reaching a $7 billion scale upon full completion.
Hicks expressed skepticism about ELS’s projections during a press conference, stating, “That is just I think not consistent with the observation of data center deployments around the country. It’s just not plausible.”
Responding to the report, ELS CEO Drew Nations defended their optimistic outlook, asserting that their projections align with plans to significantly benefit the community. He stated, “We stand by our tax revenue projections of $40 million per year at full build-out — enough to make Stokes County teachers among the highest-paid in North Carolina while simultaneously cutting property taxes.”
The analysis was sponsored by the Southern Environmental Law Center, an organization that has previously taken legal action against Stokes County concerning the rezoning of the project area.
