Ever since Mayor Kerry Devine energized the discourse surrounding Fredericksburg’s pursuit of a data center with her comments during a city council meeting in July, city manager Tim Baroody and his staff have been working on what it would take to bring such a development to Celebrate Virginia South.
The next stage of that work involves a feasibility study to prove that electricity can be brought across Interstate 95 from the city’s existing line.
The study, which would take four to six months to complete, requires a $200,000 upfront payment to Dominion — a fee not dissimilar to a retainer — Baroody said at Monday’s Economic Development Authority Meeting.
In discussions with city attorney Kelly Lackey, Baroody said it was determined that the EDA could facilitate the study on behalf of the city and that city council will consider the payment at its Aug. 27 meeting.
“They know they have to come up with this money,” Baroody said.
Baroody said that while city council has not yet discussed allocating money for the proposed data center project at the so-called “Hilton property” off Cowan Boulevard, “We’re going to ask them to consider both [locations] at the same time.”
The city manager also said that his staff is already talking to other jurisdictions that have welcomed data centers, including bordering Stafford and Spotsylvania counties.
In particular, Baroody said the city went to school on Stafford’s recent agreement with Amazon to reuse water for its data center project, which was approved by that county’s board of supervisors in January.
“We think that’s an exceptional concept. I think that’s imperative, quite frankly,” he said.
During a recent visit to Fredericksburg’s wastewater treatment plant, EDA member Kevin Hughes said he learned from the plant’s manager that infrastructure upgrades could allow for reusable (non-potable) water for industrial uses, like a data center.
In response to a question about projected tax revenue generated by a data center, Baroody said that research from the Fredericksburg Regional Alliance — specifically a report from Magnum — pointed to $5 million per 250,000 square feet per year.
The EDA voted unanimously to engage with Dominion for the feasibility study on behalf of the city if provided the funds.
