DIGITAL INSIGHTS: Not Appreciated Until It’s Gone
Monday's AWS outage is a reminder of just how critical the internet - and the data centers that drive the internet - are to our society and economy.
By Martin Davis
EDITOR-IN-CHIEF
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Digital Insights is a weekly feature usually appearing on Thursdays that explores the role of data centers in our region. These columns will focus on four areas: tracking the development of data centers in our area, exploring projected and actual tax revenue trends, explaining what data centers are and how they affect our daily lives, and reporting on research and emerging trends in the industry. These columns are made possible, in part, by a grant from Stack Infrastructure.
Former governor of Indiana Mitch Daniels once said, “You’d be amazed how much government you’ll never miss!”
In the context of the internet and the data centers that make it possible, however, the inverse is true: “You’d be amazed how much you’ll miss data centers when they aren’t working properly.
As our community prepares to see a number of data centers opening in the coming years, it helps to remember just what these businesses do and how central they are to the American economy and its society.
On Monday, we all got a reminder of how critical well-functioning data centers are to our business and social lives.
Around 3:15 a.m. EST on Monday morning, the site DownDetector began recording significant issues with internet services offered through Amazon World Services. Nearly 70% of the reported issues occurred in the US-East-1 region, which includes the data centers in Loudon and Prince William counties.
The Advance was affected because the platform we publish from — Substack — runs parts of its service through AWS. Among the problems our team has wrestled with throughout the day were minor annoyances like delays in reporting data about open rates, and more challenging issues like delivering stories to our readers that are scheduled for publication.
Air travelers were also affected by the issues at AWS. Delta airlines and United Airlines customers “reported that they were unable to pull up reservations, check-in online or generate mobile boarding passes. Others even reported struggling with bag drops. Airline websites as well as apps for Delta, United, and, for a brief period earlier today, Southwest Airlines, experienced outages,” according to SimpleFlying.
SnapChat and Reddit users also experienced delays and were at times unable to access these popular social media channels.
Online payment platforms Venmo and PayPal were also affected. According to DownDetector, Venmo registered more than 1,600 complaints early Monday morning, before soaring to more than 8,300 complaints around noon. Paypal showed a similar pattern, with a smaller number of complaints early Monday morning, with complaints spiking beginning around noon.
The real impact, however, comes down to dollars and cents.
In a quote for CNN Business, Mehdi Daoudi of Catchpoint estimated that the financial impact of today’s disruption “will easily reach into the hundreds of billions due to loss in productivity for millions of workers that cannot do their job, plus business operations that are stopped or delayed — from airlines to factories.”
That number isn’t hard to imagine when Amazon itself posted about the problems it’s having on its homepage: “We’re sorry if you’re currently experiencing issues using the Amazon site. We’re working to fix this as quickly as possible.”
In 2024, Amazon did just north of $391 billion in sales, or slightly more than $1 billion a day.
The big online platforms weren’t the only one affected. That pain is being felt locally, too. Just one example has been the impact on local restaurants “using toast restaurant POS system,” said Cori Blanch who owns Curitiba on Caroline Street. He noted that the outage is keeping him “locked out of [our] back end,” meaning he can’t see any analytics like sales. (Editor’s Note: Blanch sits on the Advance’s board.)
Mary Washington Health Care reported that “The Amazon Web Services east coast data center outage has not caused any major interruptions to MWHC’s operations. MWHC’s main systems, including electronic medical records, remain protected and are functioning as normal,” said spokesperson Emily Thurston in an email.
Atlantic Union Bank posted a message to its customers on its mobile app that the AWS outage could also potentially affect their access to online banking services.
Concerns about the rapid rate of data center development are understandable, but today’s event is a reminder that data centers are as crucial to the global economy as the power lines that bring energy to your home, or the pipelines that bring gas to local service stations, and the highways that allow us to move freely across the country.
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Here are some videos that tell the other side of the story. Unfortunately, in 22401 Fredericksburg, residents were 'socialized' (brainwashed) to support DATA CENTERS by certain CIty Councilors and Curry Roberts, UMW Fredericksburg Regional Alliance, working behind the scenes, as discovered in a FOIA Freedom of Info Act request paid for by residents of 22401. This 'socializing' did not happen in surrounding counties.
Appreciation is expressed to residents of Stafford Co and Spotsy Co and the cohort of 22401 residents for organizing and mobilizing their citizens to understand the facts and truth about DATA CENTERS.
Videos show significant local opposition to DATA CENTER expansion in Virginia, with residents concerned about noise pollution, impact on historical sites, and environmental effects.
Opposition groups are mobilizing to advocate for better planning and state-level legislation to manage growth, as Virginia's role as a DATA CENTER hub is challenged by these concerns.
Stafford and Spotsy Co groups have pointed out the need to mobilize regionally. The DATA CENTER opposition must work REGIONALLY, and is, starting off with sharing FOIAs and monitoring documents, such as Performance Agreement Standards and Water Services Agreement, which now have info redacted (blacked out).
Videos highlighting opposition and community concerns
WJLA News' "Dozens rally against Virginia's 'unchecked' expansion of data centers": This video shows a local protest against the rapid growth of data centers, with residents rallying against the impact on their communities. https://wjla.com/news/local/rally-against-data-center-expansion-data-center-coalition-virgina-nova-va-reston-data-center-fairfax-county-alexandria-save-bren-mar-virginia-sierra-club
NPR's "Why more residents are saying 'No' to AI data centers in their...": This video features residents like Helen Messer in Chesapeake, who are worried about the potential for constant noise from the cooling systems of a proposed data center near her home. https://www.npr.org/2025/07/17/nx-s1-5469933/virginia-data-centers-residents-saying-no
YouTube's "Virginia data center push colliding with historic preservation of...": This report focuses on how the expansion of data centers poses a risk to historical sites, such as the Manassas Battlefield, and could ruin the views visitors currently experience. https://www.youtube.com/watch?v=JN47D7-PkBY
YouTube's "The Challenge Towns Face in Powering AI and Data Centers": This video explores how towns like Warrenton are being impacted by large data center projects, showcasing a 42-acre site Amazon purchased for a DATA CENTER and discussing how it can transform a community.
Videos presenting the economic and technological perspectives. Contrast the Warrenton, VA mayor's Balanced input on DATA CENTERS with what 22401 residents had to put up with Fredericksburg Mayor Kerry Devine telling residents at the Jan 2025 DATA CENTER forum funded by residents to pay the room rental fee for Dorothy Hart to get info out on DATA CENTERS: 'Trust us'. Residents rolled their eyes hearing this paternalistic comment. Her refusal to name the DATA CENTER developer for the CVA project of 8-12 DATA CENTERS 200 ft within residences with children and 'Jubilation' for seniors near the Fred Nats ballpark. until AFTER the 7-0 DONE DEAL Council vote on 2-25-25 for the TOD/Technology Overlay District for 8-12 DATA CENTERS. Friends of the Rappahannock went on record 'do not support the TOD'. https://www.youtube.com/watch?v=-UjykTv2rDQ
YouTube's "Are AI DATA CENTERS in Virginia raising your electric bill...": DATA CENTERS ARE causing electricity bill increases for consumers. Ratepayers in the Commonwealth of Virginia are paying the hidden DATA CENTER fees within their power bills even if a DATA CENTER hasn't even been proposed in their locality. https://www.youtube.com/watch?v=YN6BEUA4jNU
YouTube's "Virginia: DATA CENTER Capital Of The World": This video acknowledges that data centers use significant energy and water, but also highlights the efforts being made to mitigate the impact, such as through water recycling and research into alternative cooling methods.
Videos discussing policy and solutions https://www.youtube.com/watch?v=td-7WGAQKgA
YouTube's "Conservation Café: Data Centers – Getting MD & VA to Take Action": This video features the Piedmont Environmental Council discussing the challenges DATA CENTERS pose to local communities in Maryland and Virginia and what actions can be taken at the state level to manage them. One hour video: https://www.youtube.com/watch?v=B7pWvgn-4h4
YouTube's "Chesapeake residents critical of proposed DATA CENTER": This video shows residents criticizing a proposed data center in Chesapeake, arguing that Virginia has enough DATA CENTERS already and that new projects should not be built without proper oversight.
https://www.nbcwashington.com/video/news/local/inside-virginias-billion-dollar-data-center-boom-whats-next-for-maryland/4000389/
Piedmont Environmental Council video shown at the Jan 2025 Fredericksburg DATA CENTER Community meeting funded by residents, not local government. Unbeknownst to the Meeting organizer at that time, Councilors had been participating in 'socializing' (brainwashing) residents in Oct 2024 to bring them out to the public comment mic on 2-25-25, braying and wearing James Monroe HS colors 3-inch buttons "I support DATA CENTERS. The Community meeting provided the BASIC DATA CENTER 101 to 22401 residents. https://www.youtube.com/watch?v=fAPusgiz4B8
'Inside NOVA' article about how a DATA CENTER snuck a secret tenant BANK inside the DATA CENTER to avoid paying the promised BPOL tax. Virginia banks do not have to pay BPOL taxes. https://www.insidenova.com/headlines/secret-data-center-tenant-in-manassas-not-subject-to-business-property-taxes/article_ec6c7a6b-a233-4e46-befe-6dc56adcd61d.html
Potomac Local News Resident letter to the editor Jeff Eastland: https://www.potomaclocal.com/2025/08/07/data-centers-are-endangering-virginia/
CONFIDENTIALITY AGREEMENT
This is a confidentiality agreement dated January 18, 2024, between McGuireWoods Consulting LLC (Company), a Virginia limited liability company with its principal office at Gateway Plaza, 800 E. Canal St., Richmond, VA 23219; and the City of Fredericksburg, a Virginia municipal corporation.
Recitals
The Company must make limited disclosure of certain proprietary information in order to obtain required data for its decision-making process. The Fredericksburg Economic Development Authority (EDA), a political subdivision of the Commonwealth of Virginia, has as part of its public purposes to enhance the welfare and prosperity of local citizens by assisting companies considering expansion or location of facilities in the City. The City may, as part of its public purposes, appropriate funding to the EDA.
The Company has agreed to voluntarily provide proprietary information to the City pursuant to a promise of confidentiality, for use by the City for business, trade and tourism development.
Code of Virginia §2.2-3705.6(3) exempts “proprietary information, voluntarily provided by private business pursuant to a promise of confidentiality from a public body, used by the public body for business, trade, and tourism development or retention,” from the mandatory disclosure provisions of the Virginia Freedom of Information Act.
Agreement.
The parties agree as follows:
1. In order for information to be protected under this agreement, the Company shall (a) invoke the protection of its information, (b) identify with specificity the proprietary information for which protection from disclosure is sought, and (c) state the reason why protection is necessary, at the time it is submitted. The Company shall not designate as proprietary information any portion of a record that does not contain proprietary information.
2. The ability of the City to protect the Company’s proprietary information is dependent on the care that the Company takes to clearly identify it. When a written submission contains both public and proprietary information, the Company should so state on the first page or cover letter for the submission, thereby alerting the City to the presence of proprietary information internal to the submission. The Company should make a prominent mark on each individual page of proprietary information as “confidential.” The Company may wish to separate its submissions, to include all public information in one submission, and all proprietary information in a separate submission, to protect its proprietary information.
3. The City agrees not to disclose Company’s clearly-identified proprietary information, except as may be required by law, including the Virginia Freedom of Information Act.
4. The City may disclose the information to third parties as permitted by the Company in order to obtain further information necessary to the process of business location or expansion.
5. In the event the City receive a FOIA request for the Company’s proprietary information, the City will notify the Company.
6. In the event of litigation by a third party over the nondisclosure of Company’s proprietary information, the Company agrees to cooperate fully with the City and their counsel in resolving or defending such an action.
7. This agreement shall be governed by the laws of the Commonwealth of Virginia.
The parties are signing this agreement on the date indicated with each signature.
City of Fredericksburg
By:_________________________________
Timothy J. Baroody
City Manager
Date: January 18, 2024
McGuireWoods Consulting LLC
By: ____________________________________
W. Ford Graham
Senior Vice President
Date: January 18, 2024