Fredericksburg’s Economic Development Authority voted unanimously Wednesday morning to allocate up to $225,000 of its funds toward a feasibility study with Dominion Energy related to a potential data center in the Celebrate Virginia South area of the city.
According to EDA chair Beth Black, the monies will be reallocated to the EDA’s “opportunity fund,” a move intended to minimize the impact of such a large expenditure on the authority’s other economic initiatives.
“Since this is an economic opportunity to explore, we decided it was worth it,” Black said in a phone interview. “All of the line items we took from still have a remaining balance so we can continue those objectives.”
Wednesday’s special meeting, which was called as the result of conversations between Black and city officials during the Aug. 27 City Council work session, means that the study won’t be funded by taxpayer dollars. Last month, the EDA discussed facilitating the study in a “pass-through” capacity had councilors approved using the city’s budget.
Several speakers at the Aug. 27 city council meeting spoke out against data centers, citing noise and environmental factors and imploring officials to seek alternative sources of revenue.
Initial estimates for completing the study came in at 4 to 6 months, but — at the city council work session — Fredericksburg Regional Alliance President Curry Roberts told councilors that a growing queue of projects could result in a longer lead time, closer to eight months.
Black said Dominion hasn’t yet requested any funds related to the study, and the EDA has no plans to engage the utility company proactively.
“But, if they decide to move forward with the study, there’s now funding that doesn’t come from taxpayer dollars to pay for it,” Black said.
Beth Black is a member of the Free Press journalism advisory committee.
