On Wednesday evening, the Dorothy Hart Community Center hosted a panel on the future of data centers in Fredericksburg and their impact.
The event was sponsored by Friends of the Rappahannock, Fredericksburg Neighborhood Coalition, Inform Fredericksburg, the Rappahannock Group of the Sierra Club and the Climate Reality Project.
Panelists included Eric Bonds, a University of Mary Washington sociology professor and co-founder of Fossil Free Fredericksburg; Brent Hunsinger, the Tidal Programs manager & state policy coordinator for Friends of the Rappahannock; Tracey Vargo, a principal partner at Stonebridge with 35 years of experience in commercial development including data centers; and Daren Shumate, the founder/CEO of Shumate Engineering PLLC. Fredericksburg Mayor Kerry Devine also participated in the discussion.
Data is “what everybody is using, it’s what everybody is creating, it’s how we all live, its as much of an advancement as paper was, it’s more important in many ways,” Vargo said.
Panelists agreed that the rise of AI has increased the need for data center development.
“Our goal is to be a model of how data centers can be developed while addressing the realities of growth and protection of our precious resources,” Devine said.
The only Fredericksburg data center campus that is officially under consideration for development would be located in the proposed Technology Overlay District at Celebrate Virginia South. Though data center development continues to take shape in the city, to date no project has been approved. If approved, the TOD would allow the data centers as “by-right” developments, meaning they wouldn’t require special-use permits or public hearings.
According to Devine, Celebrate Virginia South is currently slated for the development of 762 apartments, an approved residential project that is being halted with a data center as a possible alternative.
Though there has been speculation of another data center at the Hylton Track/Gateway Blvd area, which is the area running along Interstate 95 from State Route 3 to Cowan Blvd. adjacent to the Great Oaks Subdivision, that project isn’t in front of city staff at this time, Devine said.
Data center campuses, which would have a height limit of 90 feet, could generate an estimated annual tax revenue approaching $60 million as well as create commercial jobs around the area, especially during construction.
“We have a region that is rapidly building data centers all around us, there is a state backlog of projects, delaying action now could mean years of lost revenue,” Devine said, adding, “the cost of not moving forward on this project may be too high a price to pay.”
Although Devine stressed the positive outcomes of data center development, concerns remain about the environmental implications.
“Data centers are not themselves significant sources of pollution at the location,” Bonds said, “but they use huge amounts of energy that has to be produced somewhere.”
The energy needed to power data centers can’t be generated entirely by renewable sources due to the demand.
“The demand is huge, the growth is huge, the big question is: Where are we getting the power?” asked Shumate. “And right now what makes the most sense is natural gas.”
Environmentalists on the panel posited that the development could compromise Fredericksburg’s goal of being fossil fuel-free by 2035. However, Devine said, revenue gained from the data centers could actually help the city achieve its aims in this area.
“I understand the environmental concerns,” she said.
The next opportunity to discuss data center development in Fredericksburg will be a Planning Commission public hearing on the Technology Overlay District from 6:30 to 8:30 p.m. Feb. 12. The City Council public hearing on the same subject is set for Feb. 25 at 7:30 p.m.
Both meetings will be held in council chambers at city hall and streamed online.
