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.
Brent Hunsinger, a representative for the organization, spoke on the importance of expanding tree cover in urban areas, stating, “Thank you very much for working with the city on this issue…we feel that this is a very important step so that our lawmakers in Richmond can see that localities care about this as well, not just organizations such as Friends of the Rappahannock, as we work towards expanding that authority potentially down the road to try preserve and expand that urban tree canopy.”
Urban tree canopy initiatives provide numerous benefits, including improved air quality, reduced heat, and enhanced community well-being. These projects are increasingly recognized as essential for building climate resilience in cities, where trees help mitigate the effects of urban heat and contribute to carbon sequestration. With the legislative session approaching in January, Fredericksburg’s request for increased authority to preserve and grow its tree canopy reflects a broader commitment to environmental sustainability.
Mayor Kerry Devine underscored this commitment, pointing to the community’s growing focus on quality-of-life improvements. “We often hear about issues like vehicle noise, and this agenda item is another reminder that our community prioritizes quality of life,” she said. “Expanding green spaces and preserving our urban canopy will have lasting benefits for Fredericksburg residents.”
Councilor Jason Graham echoed these sentiments, highlighting Fredericksburg’s goals for sustainable growth. “We hear the concerns about [environmental impacts]… It remains critically important that we are committed to growing in an environmentally sustainable way,” Graham remarked.
As Fredericksburg continues to partner with local environmental groups and advocates for legislative support, the council’s efforts may set a precedent for other Virginia localities to follow. Enhanced legislative authority would enable Fredericksburg to implement even more effective strategies for protecting and expanding urban green spaces in the face of ongoing development.
- Devine
Uriah’s Note: Members always get the first read of our original reporting. Thanks for your continued support.
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.
You are invited to join, learn more, and make your voice heard at the Virginia Passenger Rail Authority’s public meeting on September 18th, 2024 at Conway Elementary School in Stafford County, VA!
Read more about these projects at https://t.co/15Ex8GAnJC pic.twitter.com/T49ThJel6V
— FAMPO (@FAMPO_VA) July 29, 2024
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.
Update July 23: City Council members will attend the CSX public statement on July 24. The event is at 3 p.m. in the gravel parking lot behind VRE Lots G and H. The entrance is at the corner of Prince Edward and Frederick Streets.
Mayor Kerry P. Devine addressed the recent train derailment behind Fredericksburg’s Cobblestone Square apartment complex, expressing concern for the community’s safety.
Mayor Devine commended the prompt response from local and mutual aid emergency services, noting no injuries were reported. The mayor emphasized the city’s commitment to a thorough and transparent investigation, with city leadership actively coordinating with federal and state officials, as well as CSX Transportation. She said she and the City Council “expect an investigation into how this derailment occurred and will continue to work to ensure that our community remains safeguarded against future emergencies along our rail lines.”
Mayor Devine assured residents that the city would continue to provide updates and encouraged everyone to subscribe to emergency alerts. Her full statement is available online.Â
A public address by CSX Transportation is scheduled for July 24th at 3 p.m. at the VRE parking lot near the incident.
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
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.
