Fredericksburg, VA – A quiet technological revolution is sweeping through the Fredericksburg region. What was once an area defined by its colonial charm and suburban sprawl is now emerging as a new frontier for data centers—massive facilities that house the backbone of the digital world.
With multiple large-scale projects underway in Stafford, Spotsylvania, and Fredericksburg City, officials are hailing the data center boom as a once-in-a-generation economic opportunity. But behind the promises of job creation and tax revenue, concerns about environmental impact, energy consumption, and long-term sustainability are growing.
A Region Transformed: The Rise of Data Centers
Data centers, the warehouses of the internet, store and process vast amounts of digital information, powering everything from social media to cloud computing. Traditionally concentrated in Northern Virginia’s “Data Center Alley” in Loudoun County, these facilities are now expanding southward.
Stafford County: A New Powerhouse for Tech?
In Stafford County, construction has already begun on a 510,000-square-foot data center campus off Old Potomac Church Road, just south of Stafford Hospital. A much larger campus, spanning up to 5.8 million square feet, has also been approved following a controversial rezoning decision in September 2024.
Supporters claim the project will bring thousands of jobs and millions in tax revenue, while opponents worry about infrastructure strain, increased energy demand, and environmental damage.
Spotsylvania County: A Data Hub in the Making
In Spotsylvania, multiple data center projects are reshaping the landscape. A new facility is rising along Cosner Drive, east of Interstate 95, while another has broken ground near Massaponax Church Road and Summit Crossing Road. The Mattameade Tech Campus, a massive development straddling the Spotsylvania-Caroline County line, could become one of the largest in the state.
Fredericksburg City: Betting Big on Digital Infrastructure
Unlike its neighbors, Fredericksburg City has taken an active role in shaping its own data center destiny. In October 2018, the city council revised zoning laws to allow data centers in commercial and industrial areas. The council followed up in May 2019 by setting an attractive personal property tax rate of $1.25 per $100 of assessed value on data center equipment—one of the lowest in Virginia.
Most recently, in November 2024, the council approved plans for a large-scale data center project in Celebrate Virginia South, an area previously eyed for retail and tourism.
This decision has sparked heated debate, with some praising it as a “game-changer for the city’s economy” while others call it “a shortsighted deal that could alter Fredericksburg’s character forever.”
The Good: A Booming Economy and Infrastructure Growth
Few can dispute the economic benefits data centers bring to localities. According to a 2024 study by the Virginia Economic Development Partnership, for every 1 million square feet of data center space built, local governments receive an estimated $19 million in annual tax revenue.
In Fredericksburg, where the data center expansion is projected to generate over $45 million per year, city officials say the influx of revenue could fund schools, roads, and emergency services without raising taxes on residents.
Job Creation and Business Growth
While data centers themselves don’t employ large numbers of workers once operational, they create thousands of jobs during construction and support high-paying positions in facility management and IT services.
The Bad: Environmental Strain and Energy Guzzling
Energy Consumption: A Grid Under Pressure
A 2024 report from Virginia’s Joint Legislative Audit and Review Commission (JLARC) reveals that data centers are driving a projected doubling of Virginia’s statewide energy demand in the next decade.
While many companies pledge to use renewable energy, the sheer scale of these facilities means most still rely on traditional power sources, including fossil fuels. Critics argue this expansion could lead to:
- Increased electricity costs for residents
- A strain on Virginia’s power grid
- Greater carbon emissions if not offset properly
Water Usage: A Hidden Concern
Cooling systems in data centers often require millions of gallons of water per day to prevent servers from overheating.
A 2023 study found that data centers in Virginia consumed nearly 1.85 billion gallons of water—a 60% increase from 2019.
With Fredericksburg and surrounding counties already facing periodic drought conditions, environmental advocates worry that data center expansion could worsen water shortages, especially during hot summer months.
The Ugly: Deforestation, Land Use Conflicts, and Transparency Issues
Loss of Green Space and Wildlife Displacement
The construction of data centers often involves clearing large swaths of land, leading to deforestation, habitat loss, and disruption of local ecosystems.
In Spotsylvania, environmental activists have already filed a lawsuit against a developer, arguing that the destruction of wetlands for data center projects violates state environmental regulations.
The Debate: Should Fredericksburg Embrace Data Centers?
As the battle over Fredericksburg’s data center expansion continues, two competing arguments have emerged:
The Case For Data Centers
✔ Massive Tax Revenue: Millions of dollars in tax revenue can be used to improve public schools, roads, and emergency services.
✔ Infrastructure Improvements: The influx of data centers will drive investments in local infrastructure, including better roads, fiber optic networks, and public utilities.
✔ Job Creation: Thousands of jobs will be created during construction, and once operational, these facilities will provide well-paying positions in IT, security, and maintenance.
✔ Technological Advancement: Bringing data centers to Fredericksburg positions the city as a major tech hub, attracting more businesses and innovation.
The Case Against Data Centers
❌ Environmental Damage: Increased deforestation, noise pollution, and rising energy demands could harm the environment and disrupt local communities.
❌ Water and Power Strain: The high energy consumption and massive water use could strain local resources, leading to increased costs for residents.
❌ Low Long-Term Employment: Unlike other industries, data centers require very few full-time employees once built, offering limited job opportunities compared to their size and impact.
❌ A Changing Landscape: The large, warehouse-like structures are a stark contrast to Fredericksburg’s historic and suburban character, potentially reducing property values and altering the city’s aesthetic.
A Fork in the Road: What’s Next for Fredericksburg?
The data center boom is here to stay, but how it is managed will determine whether Fredericksburg emerges as a tech-driven success story or faces unintended consequences.
Should Fredericksburg welcome more data centers for their economic benefits, or should the city pump the brakes and consider the environmental and infrastructural costs?
As city leaders continue to debate, one thing is clear: the future of Fredericksburg’s digital transformation is still being written.
