Fredericksburg Data Center Approval Raises Questions Over Dominion Energy Prioritization

Ahead of the Fredericksburg City Council’s recent approval of a Technology Overlay District (TOD) allowing data centers, concerns emerged about whether Dominion Energy would deprioritize power access for the city if the measure had failed.

In an op-ed published by The FXBG Advance, Mayor Kerry Devine warned that rejecting the TOD could push Fredericksburg to the back of Dominion’s “rapidly expanding project list,” potentially delaying or preventing the city from securing the necessary power for a proposed data center campus.

Seeking clarification, Potomac Local News asked Dominion whether the City Council’s decision would have affected Fredericksburg’s place in the company’s project queue.

“Requests for transmission infrastructure to serve large new customers, like data centers, are evaluated in the order they are received,” responded Aaron Ruby, Dominion’s Director of Virginia & Offshore Wind Media. “I believe that’s what was meant by the project queue.”

Ruby did not elaborate on whether any specific localities had been deprioritized in the past, nor did he provide examples of projects being moved to the back of the line.

Background: City Council Approves Technology Overlay District
On February 25, 2025, Fredericksburg’s City Council unanimously approved the TOD, paving the way for the city’s first data center campus. The project, led by The Silver Companies in partnership with STACK Infrastructure, is expected to include between eight and twelve data centers in Celebrate Virginia South.

Fredericksburg joins nearby Stafford, Spotsylvania, and Caroline counties, with multiple data centers operating within their jurisdictions. Proponents say the TOD positions the city to compete for a lucrative data center industry share.

Supporters: Economic Benefits and Strategic Planning
Supporters of the measure argue that the TOD is an essential step in attracting data center investment, which could generate significant tax revenue for Fredericksburg.

“This could bring up to $60 million annually, funding for schools, infrastructure, and helping to keep property taxes stable,” said Councilman Will Mackintosh.

Others believe the overlay district allows the city to set clear guidelines for data center development, ensuring new projects align with Fredericksburg’s long-term vision.

Opponents: Environmental, Transparency, and Health Concerns
Critics warn that the data centers’ immense energy demands could conflict with Fredericksburg’s goal of achieving 100% clean energy by 2035. Environmental activist Alexanna Hengy pointed out that the proposed data center campus could double the city’s energy consumption.

“There are serious concerns about what this will do to our climate goals,” Hengy said.

Some residents also expressed frustration over the speed of the approval process. Former City Council member Matt Kelly criticized what he saw as a lack of transparency, arguing that the city had not provided sufficient details on energy and water agreements before making a final decision.

Additionally, there are concerns about the proposed data centers’ proximity to residential areas. Hengy noted that some facilities would be built within 120 feet of apartment buildings and a nursing home, raising fears about noise pollution and potential health risks for nearby residents.

With the TOD approved, developers must now work with Dominion Energy to assess the site’s power infrastructure. Ruby stated that Dominion will only begin evaluating the project’s energy needs once a data center officially moves forward with development.

“It’s too early to say how much infrastructure would be needed or what the timeframe would be, since that all depends on the size and scope of the development,” Ruby explained.