08/27/2026
THE PENZANCE DATA CENTER VOTE--What Is Really Happening?
City Council recently voted 7-0 against the proposed Penzance data center project along I-95 between Rt. 3 and Cowan Blvd., and adjacent to Great Oaks subdivision. What stood out during the debate on the project was the lack of details on the impact of the project. Nor was there any mention of the impact of the STACK data center planned at Celebrate VA. An interesting picture emerges when we step back and look at how both projects have been evaluated.
City staff keeps the public in the dark by handling FOIA requests as only a search for documents. Staff refuse to respond to any straightforward, basic questions with an answer, only "No responsive records.” So, if we ask them what color the ground is under the data centers, the response would be “No responsive records.”
Figures and numbers provided by the developers are meaningless to the public because they provide no supporting materials. And much is hidden behind non-disclosure agreements. Why are non-disclosure agreements even acceptable? There’s not enough competition for such a huge project in the city (actually none after the vote), to make one necessary.
Online research produces conflicting estimates of costs and usage due to a lack of public information. In the case of AI, many responses have the caveat, “insufficient public information.” What does this say about transparency between Fredericksburg’s leadership and the voters who put them there? A lot.
What follows represents our best efforts to go through available information. Our hope is that city staff and Council will take this opportunity to correct any errors in this post by providing the information currently being withheld from the public.
In a Fredericksburg Advance story published before the vote, a member of City Council expressed concerns that the city couldn’t provide the infrastructure for two data center projects. Inform Fredericksburg has tried to cover this issue not only from the city’s perspective but regionally when you look at the number of data centers going up in the neighboring jurisdictions. What is their potential impact on Fredericksburg’s shared resources like water and electricity?
So why doesn’t Council now take the opportunity to elaborate on the impact on city infrastructure? The answer, we think, is political. Placate the public with a feel-good moment by turning down the Penzance project, while allowing the STACK data center campus to continue to move forward behind closed doors.
In the same Advance story, Council members expressed two concerns:
• The proximity of the Penzance project to residential development.
• The proximity of transmission lines to Hugh Mercer Elementary School.
If we accept the Council members at their word, then let’s look at why they approve STACK project.
The Penzance project is roughly 600 feet from the Great Oaks subdivision. If that distance is a reason to vote against the project, why is the council allowing the STACK project in Celebrate VA within the Technology Overlay District (TOD) to be within 200 feet of residential development? In the case of the Celebrate VA site three residential projects will be impacted. So, is the issue proximity to residential development or just proximity to certain residential developments?
All decisions regarding electrical infrastructure will be made by Dominion Power with state oversight. While the Penzance project proposed to build an onsite power station no mention is made of it on the Dominion Power website. Even if it were considered, the transmission lines would still be needed to tie it into the existing grid. Where would they go?
Inform Fredericksburg has reviewed Dominion Power’s current plans for improvements to Fredericksburg’s electrical grid needed to accommodate data centers. At this point there are two significant projects.
The first is referred to the Allman Sub-Station. This is primarily an upgrade and expansion of the current Powhatan Street transmission station located near Hugh Mercer Elementary School. So, looking at a map (which we have posted) the route for the transmission line to the STACK project presents the same problems as the Penzance project. Getting the lines to the STACK project will also impact more residential areas than the Penzance project.
If the location of transmission lines was a factor in voting down the Penzance project, how will council members justify the STACK project if the transmission lines impact Hugh Mercer Elementary School and nearby residential neighborhoods?
Another transmission line improvement, which has not been discussed, is upgrading the transmission lines to the Powhatan station. The most significant part of the project is identified as the Elmont-Fredericksburg upgrades. This will involve increasing capacity along the Lafayette Boulevard corridor, going through several residential neighborhoods. This project also involves adding and increasing the height of transmission towers by 50 to 100 feet. When will this discussion begin with the affected neighborhoods?
The council will likely claim that Dominion Power was going to do this work anyway. But does that actually lessen the impact? Given that Dominion Power is scrambling to meet data center demands—even reopening mothballed plants and pausing green initiatives—the evidence points to data center demands on the power grid. Regardless of their excuse, this is an essential conversation.
Council’s recent comments and unanimous vote turning down the Penzance project leaves more unanswered questions than before the vote. The biggest concern is Council’s inconsistency and lack of candor when approaching two data centers. They both affect the public in nearly identical ways. Yet one gets a yes vote and the other is turned down. The question is why? And we don’t expect to get an answer anytime soon.
We need to demand a more open, inclusive, and transparent discussion on data centers in The Burg.