A county of 30,000 residents doesn’t typically land distribution centers from AutoZone, Amazon, FedEx, and Target in the span of a few years. But New Kent County, Virginia – a largely rural stretch between Richmond and Williamsburg along Interstate 64 – has done exactly that, and the infrastructure demands are catching up fast. A $104 million rebuild of the Exit 211 interchange is expected to begin in the spring and finish by the end of 2029, according to Rodney Hathaway, who has served as county administrator for 14 years.
The county’s 21.5% population growth since the 2020 census makes it the fastest-growing county in the Commonwealth of Virginia, Hathaway says. The question facing New Kent is practical: how does a small, low-tax county absorb Fortune 500 industrial tenants, a residential building wave, and the service demands both generate – without losing the planning discipline that attracted them in the first place?
New Kent’s industrial surge is tied directly to port expansion in Hampton Roads. As those facilities grow, companies need inland distribution space with highway access. New Kent sits on I-64, which runs east-west through the county, and is three miles from I-295, which runs north-south. That combination makes the county reachable from most of the East Coast within a reasonable drive, Hathaway says.
The county also benefits from infrastructure investments made 10 to 15 years ago in water, sewer, and natural gas. “Those investments are starting to pay off now,” Hathaway says, noting that national corporate interest has increased noticeably compared to prior years. Beyond the major distribution tenants already announced, additional projects are in the pipeline, along with a Buc-ee’s location planned near the same interchange.
The residential side is growing too, driven partly by the county’s position between two metro labor markets. One spouse works in Richmond, the other in Williamsburg, and New Kent splits the commute – a pattern Hathaway says is common among families moving to the county. But the county has leaned on its comprehensive plan and future land use map to keep residential and industrial development from colliding.
“We’re seeing development occur not haphazardly but in an orderly planned fashion,” Hathaway says. The board of supervisors has followed the comprehensive plan closely enough that heavy industrial and residential uses don’t end up adjacent. That discipline extends to saying no. Some heavy manufacturing prospects have been turned away because of the water or power demands they would have placed on the county. “We’ve passed on it because of the amount of water, because of the amount of power,” Hathaway says. “We didn’t feel it’s a good fit for the county.”
New Kent currently has no data centers and no active data center projects. But the county is updating its zoning ordinance to be ready if an opportunity arrives. Earlier this year, the county presented a technology overlay district that would have allowed data centers by right within defined boundaries, subject to performance standards. After collecting public feedback, the county shifted to a conditional use permit process instead – requiring two public hearings, one before the planning commission and one before the board of supervisors.
Hathaway describes this as intentional. The original proposal was put forward specifically to gather citizen input, and the shift to a more deliberative approval process reflects what the county heard. Meanwhile, Virginia’s governor recently directed the state to develop a data center toolkit, and Hathaway says the county is watching closely to see how that takes shape during the upcoming General Assembly session.
The capital demands of fast growth in a small county are real. This year’s budget funds a new courthouse – currently out to bid, with architect interviews weeks away – a new elementary school, a new fire station, and design work for a YMCA facility. A fire station and animal shelter were completed in recent years, and the county has expanded parks. Despite this pace of capital spending, Hathaway says New Kent has maintained the third-lowest tax rate across three surrounding regions – Richmond, the Peninsula, and the Middle Peninsula – covering both real estate and personal property taxes.
Hathaway acknowledges the strain directly: every county service, from fire and rescue to schools to social services, has felt the pressure of increased demand. “We’ve been keeping up with it, but it definitely has been a challenge,” he says.
Two external forces sit outside the county’s control. The first is tariffs. With so much of New Kent’s economic development tied to distribution and port activity, any disruption to the flow of goods through Hampton Roads could ripple inland. “We’re really trying to figure out the impacts of tariffs and how that could potentially impact us,” Hathaway says.
The second is the broader economy – gas prices in particular, given their direct effect on the distribution sector that anchors the county’s commercial growth. For residents and businesses already in New Kent, the county’s ability to keep taxes low while absorbing capital costs will determine whether the growth remains an asset or becomes a burden. Hathaway says the county’s combination of affordable taxes, quality of life, and services that have kept pace with demand puts it in a strong position. “I think New Kent has a lot to be proud of,” he says.
About the Expert: Rodney Hathaway has served as County Administrator of New Kent County, Virginia, for 14 years.
This article is based on information provided by the expert source cited above. It is intended for general informational purposes only and does not constitute legal, financial, or real estate advice. Readers should conduct their own research and consult qualified professionals before making any real estate or financial decisions.
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