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EdgeCore Digital Infrastructure’s data center in Phoenix, AZ (Photo | Google Maps)

In July, Fredericksburg City Mayor Kerry Devine encouraged the City Council to explore the possibility of data centers in Fredericksburg, suggesting the Celebrate Virginia South area near the Fredericksburg Nationals Stadium and the Rappahannock River.

“However, it appears that the city’s first serious, server-laden suitor wishes to put down fiberoptic roots in a different location — 83.5 acres straddling the Cowan Boulevard corridor near Interstate 95. On Thursday morning, city staff from several different departments will consider a pre-application from southern Maryland-based developer Penzance to construct a data center campus on four parcels that were once under consideration for a Veteran’s Affairs clinic,” reports the Fredericksburg Free Press.

Penzance is a Washington, D.C.-based real estate developer, and recently partnered with EdgeCore Digital Infrastructure to expand its presence in Northern Virginia. EdgeCore plans to build data centers in Ashburn and Culpeper in Virginia. The company has already built data centers in Phoenix, Arizona; Reno, Nevada; and California’s Silicon Valley.

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Fredericksburg Mayor Kerry P. Devine recently spoke with Potomac Local in a one-on-one interview, addressing the city’s response to a train derailment and the prospect of new data centers.

The CSX train derailment occurred on July 19, 2024, near Cobblestone Drive. Several rail cars derailed, damaging a garage adjacent to the Cobblestone Square apartment complex. Fortunately, no hazardous materials were involved, and there were no reports of injuries.

CSX stated during a press conference that they did not know the whereabouts of the train crew during the derailment. The train engine had been experiencing trouble before the derailment, and the crew parked the Richmond-bound train next to Cobblestone Square. “I think it’s a not unusual practice to do that if an engine has trouble, that they would park the cars and go get it fixed…but not ensuring that the brakes were all on, and not ensuring that that train was really secure, certainly, I hope wouldn’t be [standard practice].

The residents of Cobblestone Square expressed frustration and nervousness. “They’re frustrated, they’re a little nervous, and certainly wanting answers,” said Mayor Devine. However, she acknowledged that the swift removal of the derailed cars was a positive outcome.

Here’s the letter City Manager Timothy Baroody sent to CSX, seeking assurances from CSX that a similar derailment won’t happen again.

Devine also discussed the potential impact of the incident on future rail projects in Virginia. The Virginia Department of Rail and Public Transportation continues to work to expand the state’s passenger rail network and is eyeing the purchase of the Norfolk-Southern railroad’s B-line, which runs through Manassas. When asked if this derailment may spur more conversations about the state purchasing additional track segments, Devine said, “I think that’s a possibility. We aim to be at the table. We aim to be part of those discussions.”

According to the Fredericksburg Metropolitan Planning Organization, a third railroad track is already scheduled to be built in Fredericksburg and southern Stafford County. A public meeting for the project is scheduled for September, and we will interview FAMPO Director Ian Ollis later this week to learn more.

Devine also addressed the prospect of data centers being built at Celebrate Virginia South, near the Fredericksburg Nationals baseball stadium. The City Council has ordered a study before any data center construction. Mayor Devine noted, “We’re just looking at the consideration because we’d be foolish not to have it in discussions.”

At a recent City Council meeting, At-large member Will Mackintosh emphasized the potential employment benefits of data centers. “Data centers produce many fairly highly trained and well-paid jobs,” he said. However, Mayor Devine was more cautious about the employment impact. “I don’t think anyone’s characterized [data centers] as a big employer,” she said. “But no, I don’t think we’re talking about thousands of jobs ongoing.”

Regarding environmental concerns, Mayor Devine stated, “Some of the newer facilities obviously recirculate water use which is a huge issue for me. And just the esthetics… there are things that have come a long way since the first data centers were introduced.”

When asked if companies like Amazon or Microsoft had approached the city, Devine confirmed, “We have.” However, she emphasized that the city has not committed to any firm to allow a data center to be built. She also said the city has not signed a non-disclosure agreement with any firm, which is common among data center projects.

The centers, built-in campuses, most of which are multiple football fields in size and more than 70 feet tall, power the Internet. They use large amounts of electricity and water to cool the computer servers. They employ only a handful of people and are mostly stacked with computer servers.

In recent years, there has been a proliferation of data centers in surrounding areas like Prince William County and, more recently, Stafford and Spotsylvania counties. Elected officials are drawn to the prospect of data centers in their communities because of the promise of higher tax revenues, with little or no public infrastructure investment. The centers don’t generate vehicular traffic due to the few people they employ.

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A data center is under construction on Hornbaker Road outside Manassas.

Fredericksburg Free Press: A meeting room at the downtown Fredericksburg branch of the Central Rappahannock Regional Library was filled to capacity Wednesday evening, as concerned citizens gathered to hear from local representatives from the Sierra Club and Friends of the Rappahannock about data centers.

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The Fredericksburg City Council

Friends of the Rappahannock and the Rappahannock Group of the Sierra Club will host an educational event on Wednesday, July 24, 2024, focusing on the data center’s impact on the community. The event will occur from 6 to 8 p.m. at 1201 Caroline Street in Fredericksburg.

The event will feature a one-hour presentation delivered by staff members from both organizations. Following the presentation, attendees can participate in a Q&A session to address any inquiries or concerns.

The session aims to provide insights into how data centers affect the local environment and community dynamics. It is open to all public members interested in learning more about this topic.

Regional Proliferation

Devine

The planned public meeting will take place after Fredericksburg Mayor Kerry Devine requested city staff to study the feasibility of establishing data centers during a July 9 city council meeting. This proposal aims to explore the potential economic benefits and address concerns related to data center development.

The centers, built in campuses, most of which are multiple football fields in size and more than 70 feet tall, power the Internet. They use large amounts of electricity and water to cool the computer servers. They employ only a handful of people and are mostly stacked with computer servers.

In recent years, there has been a proliferation of data centers in surrounding counties like Prince William and, more recently, Stafford and Spotsylvania counties. Elected officials are drawn to the prospect of data centers in their communities because of the promise of higher tax revenues, with little or no public infrastructure investment. The centers don’t generate traffic due to the few people they employ.

For data center operators like Microsoft, money appears to be no object. They spent nearly half a billion dollars on 124 acres across from the popular outdoor music venue, Jiffy Lube Live. The purchase has multiple Prince William County leaders (where the concert venue sits) asking if the venue will eventually be razed to make way for a data center.

Mayor Devine’s Proposal

Devine introduced the idea of data centers in the city, highlighting the significant investment in neighboring regions’ data centers. “Data centers are all around us at this point,” said Devine. “About 20 million square feet is being planned in Stafford, Spotsy, Caroline, King George, all around us. Billions of dollars will be invested in those data centers in our region.”

Economic Benefits

The mayor noted that these investments could bring substantial economic benefits, including lower tax rates and increased economic development. “Millions of dollars flowing into those communities can significantly impact and lower their tax rates. It will add very much to their economic development prospects,” Devine added.

Water Usage Concerns

One of the key concerns mentioned was the water usage of data centers. Devine addressed this by pointing to Stafford’s recent developments using water reuse and recirculation processes, which mitigate water use concerns. “Many of us were able to see that some of the ones that we looked at were developed with water recirculation, which lowers the concern about water use if it’s recirculated water,” Devine explained.

Potential Site for Development

Devine proposed Celebrate Virginia South, near the Fredericksburg Nationals stadium and Rappahannock River, as a potential site for data center development, noting that it includes about 300 acres of economic development opportunities. “If with further study from staff and recommendations, if it gets to where we develop a data center, that could significantly add to the city’s revenue and potentially lower the residential tax burden over time,” she said.

Council Members’ Support

Several council members expressed support for the mayor’s request. Council member Timothy Duffy agreed, emphasizing the need to diversify revenue streams. “I think it’s incumbent on all of us to find ways to diversify our revenue streams and not rely so heavily on property taxes. So I’m all in favor of your request and support it,” Duffy said.

Council member Jonathan Gerlach echoed this sentiment, stating, “I’ve been advocating that we find other sources of revenue for the city to relieve the burden on our taxpayers. If there is a way to bring a data center to Celebrate South in an environmentally responsible manner, I would be all in favor of it.”

Vice Mayor Charlie Frye also voiced support, mentioning the importance of exploring revenue opportunities to fund city services. “If there’s another opportunity to bring some revenue to the city, I say we go for it,” Frye stated. He also suggested informing the public about the land requirements for data centers in future meetings.

Council member Will Mackintosh believes data centers will produce many jobs. “Data centers produce many fairly highly trained and well-paid jobs. I think we should not overlook data centers as a potential employment generator in our city,” Mackintosh said. He emphasized the importance of aligning city school programs with the skills needed for these jobs.

Mayor Devine concluded the discussion by stressing the preliminary nature of the study and the need for further staff research. “Again, this is looking at this very preliminary to ask staff to study it, and they’ll come back to us with a report,” she said.

The council unanimously approved the proposal, directing city staff to proceed with the study and report their findings.

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A lawsuit brought by opponents of the Devlin technology Park rezoning faced a legal obstacle as their case was dismissed on Demurrer in front of Prince William County Circuit Court Judge Carroll Weimer, Jr.

The lawsuit alleged 30 separate allegations where county officials erred in process and public notice.

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($ Prince William Times) The developer and landowners involved in the controversial Mid-County Industrial Park, which could bring three, 90-foot-tall data centers just north of Va. 234 and Minnieville Road, have put tens of thousands of dollars into the campaign coffers of three key supervisors in the past year, according to available campaign finance reports.

Supervisors Yesli Vega, Margaret Franklin and Andrea Bailey benefited from more than $70,000 collectively from developers and landowners associated with the project.

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