Revised Fredericksburg Data Center Proposal Heads To City Council

FREDERICKSBURG, VA — A revised proposal to build a 1 million-square-foot data center campus near Interstate 95 will go before the Fredericksburg City Council on Tuesday, more than eight months after the Planning Commission unanimously recommended denying the project.

The council will hold a public hearing on requests from 1500 Gateway Venture LLC to rezone about 83.6 acres from Planned Development Medical Center to General Industrial and allow two data center buildings to reach 75 feet. The properties are located between Plank Road and Cowan Boulevard at 1500 Gateway Blvd., 2401 Plank Road, 2303 Plank Road and 1109 Mahone St.

The council will also consider whether to overturn the Planning Commission’s determination that a proposed electrical substation needed for the project does not conform with the city’s Comprehensive Plan.

Data Center Proposal Revised

The Planning Commission voted 7-0 in December to recommend denying the rezoning and special-use permit. Commissioners also voted 7-0 to find that the proposed substation was not substantially in accordance with the Comprehensive Plan.

The applicant returned with a revised proposal in July. Changes include reducing the campus from four buildings totaling 2.1 million square feet to two buildings totaling 1 million square feet. The requested maximum height was reduced from 90 feet to 75 feet.

The applicant also withdrew a request to use water for cooling and pledged to use an air-cooled system. Proposed cash contributions increased from about $1.16 million to as much as $40.005 million, according to the council meeting packet.

Other commitments include extending Gateway Boulevard as a four-lane road from Cowan Boulevard to Route 3, installing a traffic signal at Cowan and Gateway boulevards, and constructing a trail and sidewalk. The applicant has also offered to convey portions of the property to the city for open-space uses.

City staff said the proposed open space would cover about 44 percent of the project area. The applicant estimates the campus would create 108 operational jobs and between 720 and 1,440 construction jobs annually from 2028 through 2030.

A fiscal analysis commissioned by the applicant projects city tax revenue from the development would reach $26.5 million in 2031 before leveling off at about $23.4 million annually beginning in 2037.

Staff described the proposal as a complex project with “significant land use impacts and potential benefits.” Concerns include its location outside the city’s Technology Overlay District, the loss of land identified for mixed-use development and housing, the removal of a planned connection across I-95 and potential off-site effects from transmission lines.

The Planning Commission also cited unanswered questions involving noise, energy use, greenhouse gas emissions, tree canopy loss, water use and impacts on neighboring residential areas.

If the council approves the project, proposed conditions would require decommissioning and restoration plans, a performance bond, an emergency management plan developed with police and fire officials, screening of accessory equipment and compliance with architectural standards.

Housing Rules, Federal Grant Spending

Council members will also consider initiating changes to the city’s Unified Development Ordinance intended to make it easier to develop stacked townhouses, sometimes called two-over-two or piggyback townhouses.

The proposal would allow as many as 16 stacked townhouse units on one lot in areas governed by a form-based code. It would also reduce minimum lot sizes for attached homes in certain residential districts and modify standards involving building transparency, open space and setbacks.

Approval Tuesday would begin the review process rather than enact the changes. The proposal would be referred to the Planning Commission for a public hearing and recommendation before returning to the council.

A separate public hearing will seek comments on the city’s annual report detailing the use of Community Development Block Grant money from July 1, 2025, through June 30, 2026.

The city reported spending $164,998.32, including money for emergency home repairs, accessibility modifications, sidewalk ramps and traffic-calming improvements in the Mayfield neighborhood, housing and utility assistance, HIV/AIDS services and program administration. The public comment period continues through Sept. 8, when the council is expected to vote on the report.

The council’s scheduled public hearing on a landfill gas recovery lease with Terreva Stafford RNG LLC and the Rappahannock Regional Solid Waste Management Board has been postponed until Sept. 22.

Appointments And Meeting Details

The consent agenda includes the proposed appointment of John N. Siegler as deputy clerk of council and Alexandra B. Rhodes as senior assistant city attorney.

Council members will also consider placing philanthropist Doris Buffett and Juanita Pitchford on Fredericksburg’s 2026 Wall of Honor. A ceremony honoring the recipients is planned for October.

Matthew Kelly Drake and Pete Morelewicz are scheduled to be considered for appointments to the Fredericksburg Arts Commission.

The council will meet for a work session at 5:30 p.m. to discuss updated 2027 priorities. The regular meeting will begin at 7:30 p.m. in City Council Chambers, 745 Princess Anne St.

People wishing to speak during the general public comment period must register with the clerk before the meeting begins. Written comments may be submitted to the clerk by mail or email and must arrive by 1:30 p.m. Aug. 25. Comments intended for a public hearing should be clearly identified.

Document reviewed. The packet contains two apparent drafting discrepancies: both employee appointment memoranda are labeled Item 5B, and a draft data center condition describes the height as “ninety (75) feet.” The agenda and the remainder of the packet identify the requested height as 75 feet.