Data Centers Are Not Technology Companies, They Are Digital Infrastructure

Response to the recent discussion in the Royal Examiner regarding technology businesses and data centers.

When Communities Rewrite Zoning, They Are Also Shaping Their Digital Future

The recent actions by the Front Royal Town Council and Planning Commission raise an important question that communities across Virginia will increasingly face:

How should digital infrastructure be classified—and what are the long-term consequences of getting it wrong?

Main street in Front Royal, Virginia.

Following the Town Council's vote to prohibit data centers, the Planning Commission has now been tasked with drafting language that distinguishes a data center from a technology business. That may sound like a technical zoning exercise, but it is far more significant. The definitions adopted today will influence future investment, tax revenue, infrastructure planning, and economic development for years to come.

At Platocom, based in metro Front Royal and New York, we advise governments, utilities, enterprises, and investors on digital infrastructure strategy, planning, and implementation. Our work spans data centers, cloud infrastructure, edge computing, fiber networks, and the critical infrastructure that powers the digital economy.

One of the most common misconceptions we encounter is treating technology businesses and digital infrastructure as interchangeable. They are not.

From Platocom's perspective, data centers are not technology businesses. They are digital infrastructure.

Just as a power substation supports the electric grid without being an electric utility, a data center supports the digital economy without itself being a technology business. That distinction matters—not only for zoning, but for understanding the role digital infrastructure plays in a modern economy.

Infrastructure Versus Business

• Technology companies create products and services.

• Digital infrastructure enables those products and services.

• A software company develops software.

• A healthcare technology company develops medical applications.

• A cybersecurity company protects networks.

Those businesses rely on digital infrastructure to operate.

Data centers, fiber networks, Internet exchange points, and edge computing facilities form the backbone of that infrastructure.

Without them, the digital economy cannot function.

Not All Data Centers Are the Same

One of the challenges facing local governments is that the term data center covers facilities with very different purposes, infrastructure requirements, and economic impacts.

A hyperscale cloud campus serving millions of users has very different characteristics than an enterprise data center supporting a hospital system, financial institution, manufacturer, or university.

Likewise, a regional edge facility differs significantly from a large wholesale colocation campus.

These differences influence:

• Power demand

• Water consumption

• Building scale

• Employment

• Tax revenue

• Community impact

• Future expansion potential

For this reason, land-use decisions should be based on the specific characteristics of a proposed facility rather than treating every data center as the same type of development.

The Real Question Isn't "Technology Business" vs. "Data Center"

According to the Royal Examiner, Front Royal's recent Planning Commission discussion focused on developing language that would prohibit data centers while distinguishing them from technology businesses. That is a legitimate zoning objective, and it requires precise definitions.

From Platocom's perspective, the distinction should be based on land use and infrastructure function, not simply whether a business uses technology.

A technology business develops, designs, sells, or delivers technology products and services. A data center, by contrast, is digital infrastructure. Its primary purpose is to house, power, cool, secure, and connect computing equipment that enables governments, businesses, cloud providers, healthcare systems, financial institutions, and technology companies to operate.

Just as an electrical substation is not an electric utility, and a highway is not a trucking company, a data center is not a technology business. It is infrastructure that supports technology businesses.

Recognizing this distinction allows communities to craft zoning ordinances that accurately reflect their policy goals. If the objective is to prohibit certain categories of digital infrastructure—such as large hyperscale facilities—that can be done through clear, infrastructure-based definitions rather than by conflating infrastructure with the businesses it serves.

Clear definitions also create certainty for residents, elected officials, developers, and businesses by ensuring everyone is evaluating the same type of project under the same set of rules.

Looking Beyond the Town Boundary

Front Royal's recent vote demonstrates the importance of public participation and thoughtful local decision-making.

At the same time, demand for digital infrastructure continues to grow across Virginia. Decisions made by one jurisdiction often influence where investment occurs rather than whether it occurs at all. As communities evaluate future opportunities, regional planning becomes increasingly important. Infrastructure capacity, water resources, power availability, transportation, economic development, and community character do not stop at municipal boundaries. Decisions made in one locality can shift both the benefits and the burdens to another.

Planning Before Projects

Every community has the right to determine what type of development aligns with its values and long-term goals.

The strongest decisions are made before projects arrive—through clear definitions, objective standards, and a thorough understanding of the opportunities and trade-offs. Whether a community chooses to welcome, limit, or prohibit data centers, those decisions should be based on a clear understanding of what is being proposed, how different types of digital infrastructure differ, and what the long-term implications are for the community and the surrounding region.

At Platocom, we believe informed planning leads to better decisions. Our role is not to advocate for or against a particular project, but to help governments, utilities, enterprises, and communities understand the digital infrastructure landscape so they can make informed decisions that serve their long-term interests.