Ever since Mayor Kelly Devine stirred up debate over a proposed data center in Fredericksburg with remarks at a City Council meeting in July, Mayor Tim Barody and his staff have been considering what it would take to bring such development to Celebrate Virginia South.
The next phase of the work is a feasibility study to prove it’s possible to bring power across I-95 from the city’s existing power lines.
The study will take four to six months to complete and will require an upfront payment of $200,000 to Dominion, a fee equivalent to a retainer, Barodi said at an Economic Development Board meeting Monday.
Baroody said in discussions with City Attorney Kelly Lackey, it was determined that the EDA could expedite the investigation on the city’s behalf, and the City Council would consider payment at its Aug. 27 meeting.
“They know they have to raise this money,” Barodi said.
Baroody said the city council has not yet discussed allocating funds for the proposed data center project at the so-called “Hilton Property” on Cowan Boulevard, but “we’re encouraging them to [locations] at the same time.”
The mayor also said city staff is already in negotiations with other jurisdictions that would welcome a data center, including neighboring Stafford and Spotsylvania counties.
In particular, Barodi said the city learned about Stafford County’s recent agreement with Amazon to reuse water at its data center project, which was approved by the county’s Board of Supervisors in January.
“We think this is an exceptional concept and, frankly, we think it’s a must,” he said.
EDA member Kevin Hughes said during a recent visit to Fredericksburg’s wastewater treatment plant, he heard from plant managers that infrastructure upgrades will allow the plant to make reused (non-potable) water available for industrial uses, such as data centers.
In response to a question about the expected tax revenue the data center would generate, Barodi said a Fredericksburg Area Alliance study, specifically the Magnum report, estimated the data center would generate $5 million in annual tax revenue per 250,000 square feet.
The EDA voted unanimously to work with Dominion to conduct a feasibility study on the city’s behalf if funding is provided.
