Tomorrow, Tuesday, November 12, 2024, the Fredericksburg City Council is set to vote on a resolution that supports the continued exploration and attraction of data centers to the city, mainly targeting the Celebrate Virginia South area near the Fredericksburg Nationals baseball stadium. This decision follows recent adjustments in Fredericksburg’s tax policies, which align the city’s computer and peripheral tax rates with those in surrounding Stafford and Spotsylvania counties, part of Planning District 16.
According to city documents, efforts to lure data centers to Fredericksburg have been in the works for over a decade. In 2018, the council began publicly discussing the possibility of voting on amendments to the city code to designate data centers as a by-right use in specific zoning areas. Last month, the council unanimously agreed to a reduced tax rate of $1.25 per $100 of assessed value on all computer and peripheral equipment used in data centers, a move mirrored by other surrounding localities.
Economic Potential and Environmental Safeguards
According to the new resolution, data center development is expected to bring substantial economic benefits. Council member Will Macintosh, during the October 22, 2024, council meeting, highlighted these benefits, stating, “With projected new tax revenues of up to $100 million annually at full buildout, data centers offer a unique opportunity to fund essential public services, reduce real estate taxes, and support citywide initiatives in Fredericksburg.”
The resolution specifies that new data centers would collectively cover no more than 2% of Fredericksburg’s total land area, equivalent to about 5 million square feet. At this capacity, the economic impact could allow the city to reduce the real estate property rate, support recruitment and retention efforts for public safety personnel and teachers, and fund significant capital projects, such as Fire Station #3 and future school construction.
Sustainability and Environmental Standards
The council underscored its commitment to environmentally sustainable development in response to community concerns. Measures include using reclaimed “purple pipe” water for non-potable needs, on-site renewable energy generation, advanced sound mitigation technology, and state-of-the-art stormwater management to protect the nearby Rappahannock River. Council member Dr. Macintosh noted that while data center development is essential for economic growth, “it is critical that such growth reflects our values of environmental stewardship and sustainability.”
Vice Mayor Charlie Frye also mentioned during the October 22 meeting that alternative technologies, such as natural gas-driven microgrids, could reduce data centers’ environmental impact. “The Virginia Municipal League shared emerging data center technologies that could lessen the environmental footprint,” said Frye. “It’s an exciting time to explore these options, which align with our city’s climate goals.”
Looking Ahead
Suppose the resolution is passed on November 12. In that case, Fredericksburg staff will continue their due diligence, working with potential developers and aligning zoning ordinances to provide further clarity for future data center projects. City documents state that the council’s study will also focus on identifying developers with renewable energy commitments that match Fredericksburg’s sustainability targets.
With the region poised for growth in the data center sector, Fredericksburg aims to stay competitive while balancing economic benefits with environmental responsibility. “Fredericksburg is committed to fostering sustainable, thoughtful growth that aligns with our community’s priorities and positions our city for a prosperous future,” said city mayor Kerry Devine.
