Stafford County has received an application for a rezoning and conditional use permit to construct a data center along Olde Forge Drive between U.S. 17 and the Rappahannock River, reports FXBG Advance.

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The Fredericksburg Planning Commission rejected a proposal to create a Technology Overlay District (TOD) allowing data centers in Celebrate Virginia South in a 4-3 vote on Wednesday, Feb. 12, 2025. The decision follows growing concerns over transparency, environmental impact, and infrastructure readiness. Councilman Will Mackintosh, speaking on Town Talk on News Talk 1230 WFVA earlier this month, had championed the proposal, calling it a transformative opportunity for the city, potentially generating $60 million annually in tax revenue. “We wanted to set the rules ahead of time so that developers know what’s expected,” McIntosh said. “This is a chance to fund schools, infrastructure, and hold the line on property taxes.” Despite financial benefits, residents and commissioners raised concerns over water use, noise, and transparency. Former City Council member Matt Kelly criticized the process, stating, "We still don’t have key details on energy and water agreements, yet we’re being rushed into a decision." With the Planning Commission's rejection, the City Council will now decide the district’s fate in a public hearing on February 25. They can either approve the TOD or follow the commission’s recommendation to require Special Use Permits (SUPs) for future data centers, allowing for case-by-case approval.

Mackintosh outlined the city’s long-term planning efforts, which date back to 2018 when Fredericksburg began setting tax rates and policies to align with neighboring jurisdictions. With Northern Virginia running out of space, developers have turned their attention south, making Fredericksburg a prime target for new data center development.

Officials have proposed a Technology Overlay District—a designated 250-acre area in Celebrate Virginia South, near Wegmans and the Fredericksburg Nationals stadium to ensure that data centers fit within the city's framework. This district will allow data centers by right if they meet strict environmental and design regulations.

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On Wednesday night, the Fredericksburg Planning Commission voted 4-3 to reject a proposed Technology Overlay District (TOD) that would have allowed data centers and technology-focused development in Celebrate Virginia South, near the Fredericksburg Nationals baseball stadium. The motion to approve the district failed by a 4-3 vote, and a second motion recommending that the City Council require Special Use Permits (SUPs) for data centers instead passed by the same margin.

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In a unique and chilly demonstration, residents of Fredericksburg gathered Wednesday to protest a proposed data center development near the Rappahannock River by building snowmen.

Organized by the Rappahannock Community Coalition, the “Snowmen Against Data Centers” rally took place just one day after nearly 10 inches of snow blanketed the region. The snowmen were erected on the Mary Washington University Campus, City Hall, and a house off Harrell Road in Stafford County.

The protest comes on the same day of the Fredericksburg Planning Commission meeting, where commissioners took up a proposal to endorse a Comprehensive Plan Amendment, a Zoning Map Amendment applying the Technology Overlay District, and a Zoning Proffer Amendment — which would clear the way to build the city’s first data center. The city council announced it would pursue the data center on an “accelerated” timeline in December but has yet to disclose which firm would develop the project.

A staff report presented at the meeting outlined the city’s rationale for the Technology Overlay District, emphasizing its potential for economic development while balancing environmental concerns and urban planning considerations.

The report detailed discussions on the environmental impact, including protections for the Rappahannock River, increased setbacks from residential areas, and proposed water usage restrictions. Additionally, concerns were raised about noise levels from emergency generators, electricity availability, and impacts on the existing trail network. The proposal also includes measures to promote green energy initiatives and climate goals while ensuring that the development aligns with the city’s broader comprehensive plan.

Environmental and Transparency Concerns

Leading the protest effort was Alexanna Hengy, a local activist and outspoken critic of the proposed comprehensive plan amendment that would allow for constructing a data center next to a nursing home and the Fredericksburg Nationals baseball stadium.

“We’re 100% against it,” Hengy said. “The data center campus would at least double our city’s energy use, making it impossible for us to meet our climate goals—not just as a city, but as a planet.”

Hengy and the coalition argue that the environmental impact of the proposed data center cannot be ignored. Data centers require vast amounts of electricity, which is still derived from fossil fuels.

“They’re trying to build this data center only about 120 feet from apartment buildings and a nursing home,” she said. “That poses a direct health risk to our most vulnerable residents.”

Beyond environmental concerns, Hengy and her fellow activists have expressed frustration with Fredericksburg’s city leaders’ lack of transparency and accountability.

“In August, we attended a city council meeting where they were supposed to vote on spending $200,000 on a feasibility study for the data center,” Hengy explained. “We showed up, but midway through the meeting, they said they didn’t need to vote anymore because they were just going to take the money from the Economic Development Authority instead.”

Despite assurances that this was just a study and that construction was years away, Hengy alleges that city officials soon after began quietly laying the infrastructure for the project. Additionally, she criticized the city for not disclosing the developer behind the project, though through independent research, activists believe it to be Stack Infrastructure—a company with ties to the city’s Economic Development Authority.

“The process has been fast-tracked, which is not their usual procedure,” Hengy said.

Panel Discusses Future of Data Centers in Fredericksburg

As community debate over the Technology Overlay District continues, a panel discussion on January 29 at the Dorothy Hart Community Center examined the potential impact of data centers in the region. Sponsored by Friends of the Rappahannock and other advocacy groups and covered by the Fredericksburg Free Press, the event brought together environmentalists, engineers, commercial developers, and city officials, including Fredericksburg Mayor Kerry Devine.

Key Takeaways from the Discussion:

• Economic Growth vs. Environmental Impact: Panelists acknowledged the growing demand for data centers due to AI and digital expansion. If approved, the proposed site at Celebrate Virginia South could generate up to $60 million in tax revenue annually. However, critics argue the increased energy consumption would undermine the city’s goal of being fossil fuel-free by 2035.
• Energy Demand and Sustainability: Experts noted that renewable energy alone cannot meet the power demands of large-scale data centers, meaning facilities will likely rely on natural gas. “The big question is: Where are we getting the power?” said Daren Shumate, an engineering consultant.
• Zoning and Development Concerns: While the proposed Technology Overlay District would allow data centers as “by-right” developments—eliminating the need for special-use permits or public hearings—no official project has been approved yet. Another potential data center site near the Hylton Track and Gateway Blvd has not been formally proposed to city staff.

The discussion highlighted ongoing concerns over transparency and environmental protections, though Devine argued that revenue from data centers could help the city meet its climate goals.

The following public hearing on the Technology Overlay District is scheduled for February 25, 2025, City Council meeting at 7:30 p.m. at City Hall and will be streamed online.

Correction: This new data center is near Unity Reed High School, near Manassas. An earlier version of this story incorrectly reported Patriot High School.

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The ongoing debate over the construction of data centers in Fredericksburg took center stage during the City Council meeting on January 28, 2025, with residents and council members expressing mounting concerns about the potential environmental consequences and the lack of transparency in the approval process.

At the heart of the controversy is the city’s aggressive timeline for approving zoning changes and facilitating the development of new data centers. Local residents have voiced their concerns about the environmental impact of such large-scale projects, particularly in areas close to residential neighborhoods and natural resources like the Rappahannock River. While proponents argue that data centers could bring significant economic benefits, critics worry that the city is rushing to approve projects without fully understanding or addressing the long-term consequences.

Transparency Concerns

Hamilton Palmer, a Fredericksburg resident, raised alarms about the transparency of the decision-making process. At the meeting, Palmer expressed frustration over the council’s handling of the issue, particularly regarding releasing information about the proposed data centers. “There has been little effort by the city to engage the public on data centers until this past year,” Palmer said, emphasizing that many residents are still unclear about the full scope of the projects and their potential impact on the community.

Palmer also requested access to digital data related to the city’s discussions with data center developers, including emails and other records. Council members, including Councilor Jason Graham (Ward 1), acknowledged that public input had been limited during the early stages of discussions but assured the community that the council was committed to addressing concerns moving forward. However, residents remain skeptical about whether their voices will be heard in time to influence decisions.

Environmental Impact and the Push for Fast Approval

One of the primary concerns former city councilman Matthew Kelly raised is the environmental impact of building data centers in areas not zoned for such heavy industrial use. Kelly pointed out that some proposed locations are near scenic areas and residential neighborhoods, which he believes could significantly alter the city’s character.

“There are many concerns about the location of these projects,” Kelly said, referencing potential zoning changes that would allow for data centers in industrial areas, but in close proximity to neighborhoods. Environmentalists have also voiced concerns over the loss of tree canopy and potential harm to local wildlife habitats as large-scale data centers are built.

Additionally, there are fears about the environmental sustainability of these projects. Critics argue that data centers, which require massive amounts of energy and water, could strain Fredericksburg’s resources, particularly in light of the city’s past commitment to achieving 100% clean energy by 2035. Residents are asking why the city is pushing forward with such projects when they may conflict with existing environmental goals.

The City’s Recent Approval of Data Center Plans

The Fredericksburg City Council took a significant step toward attracting data center development on Monday, January 14, by voting unanimously to initiate amendments to the city’s 2015 comprehensive plan, unified development ordinance (UDO), and zoning map. The proposed changes aim to establish a Technology Overlay District (TOD) that would designate roughly 250 acres in the city as a site for data centers and related uses near the Fredericksburg Nationals stadium.

Currently, the city does not have server farms like those sprouting up in surrounding jurisdictions, such as Stafford, Spotsylvania, Prince William, and King George counties. Unlike their neighbors, Fredericksburg has far fewer acres of land to devote to sprawling tech campuses.

“This is a critical opportunity for Fredericksburg to position itself as a competitive player in the tech industry,” said Mayor Kerry P. Devine. “By concentrating development in a single campus-like district, we can ensure infrastructure is used efficiently while minimizing environmental and community impacts.”

The proposed TOD would include strict guidelines for water cooling, noise levels, and environmental protection. Industrial cooling systems, for example, would be prohibited from using potable water permanently, with exceptions allowed temporarily during infrastructure transitions. Noise levels would be capped at 55 decibels at night and 60 during the day, with rigorous noise studies required for compliance.

Despite these safeguards, residents remain concerned that the development could lead to unintended consequences, particularly in relation to noise pollution, increased traffic, and strain on local resources. As the debate continues, residents are urging the council to slow down the approval process and allow for more public input.

The city’s Planning Commission will hold a public hearing on the data center issue on February 12, 2025

Once thought to be on its way out, Dominion Energy’s Possum Point Power Station near Dumfries is now expanding operations to meet rising data center power demands, Insidenova.com reports.

The 75-year-old facility currently burns natural gas and diesel fuel, generating around 660 megawatts of energy, which powers about 170,000 homes.

The Virginia House of Delegates Subcommittee of the Cities, Counties, and Towns Committee rejected a bill that sought to regulate the siting of data centers near schools, parks, and residential areas. Delegate Ian Lovejoy (R-22, Prince William County) presented HB1984, which would have required local government approval for data center developments only if they were located at least a quarter mile away from such properties. The subcommittee voted 8-0 to “lay the bill on the table,” effectively killing it.

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A majority of the residents who spoke during Wednesday’s public input session about Fredericksburg’s proposed Technology Overlay District acknowledged or even supported the city’s pursuit of data centers, reports the Fredericksburg Free Press.

Rather, it’s the terms and timetable governing said pursuit that comprised most of their questions asked during a joint meeting of the Planning Commission and City Council.

More than one speaker noted that adjacent jurisdictions, such as Stafford County, have taken up to six months from initiating the public process to voting for a data center. By contrast, Fredericksburg’s city council first discussed a Technology Overlay District in detail on Dec. 10 and could vote on related resolutions and ordinances as early as its Feb. 25 meeting.