Fredericksburg City HallMackintosh
The Fredericksburg Planning Commission rejected a proposal to create a Technology Overlay District (TOD) allowing data centers in Celebrate Virginia South in a 4-3 vote on Wednesday, Feb. 12, 2025. The decision follows growing concerns over transparency, environmental impact, and infrastructure readiness.
Councilman Will Mackintosh, speaking on Town Talk on News Talk 1230 WFVA earlier this month, had championed the proposal, calling it a transformative opportunity for the city, potentially generating $60 million annually in tax revenue. “We wanted to set the rules ahead of time so that developers know what’s expected,” McIntosh said. “This is a chance to fund schools, infrastructure, and hold the line on property taxes.”
Despite financial benefits, residents and commissioners raised concerns over water use, noise, and transparency. Former City Council member Matt Kelly criticized the process, stating, "We still don’t have key details on energy and water agreements, yet we’re being rushed into a decision."
With the Planning Commission's rejection, the City Council will now decide the district’s fate in a public hearing on February 25. They can either approve the TOD or follow the commission’s recommendation to require Special Use Permits (SUPs) for future data centers, allowing for case-by-case approval.
Mackintosh outlined the city’s long-term planning efforts, which date back to 2018 when Fredericksburg began setting tax rates and policies to align with neighboring jurisdictions. With Northern Virginia running out of space, developers have turned their attention south, making Fredericksburg a prime target for new data center development.
Officials have proposed a Technology Overlay District—a designated 250-acre area in Celebrate Virginia South, near Wegmans and the Fredericksburg Nationals stadium to ensure that data centers fit within the city's framework. This district will allow data centers by right if they meet strict environmental and design regulations.
“We didn’t want to be reactive to data center proposals,” Mackintosh said. “We wanted to set the terms ahead of time—where it makes sense and under what conditions.”
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