Common Questions
Straightforward answers to the most common questions about data centers and 1500 Gateway's specific commitments to the Fredericksburg community.
Modern data centers are designed to meet local noise ordinances and operate as good neighbors. Mechanical equipment is enclosed within buildings and often supplemented with sound walls, landscaping, and acoustic treatments. Local governments can set strict decibel limits and require testing to confirm compliance.
1500 Gateway is designed to exceed Fredericksburg's noise ordinance at the property line. Mechanical equipment will be screened and mitigated with sound walls, landscaped buffers, and acoustic treatments. . Penzance has committed to pre-construction sound modeling and post-construction testing to confirm compliance, with the City retaining enforcement authority if limits are exceeded. An acoustical engineering analysis was completed for 1500 Gateway.
At its noisiest—which will only be when emergency generators are operated for maintenance, about 30 minutes per month during the day—the campus will be quieter than a library.
Water use is shrinking as cooling technology advances. Many new data centers use air-cooled systems or hybrid cooling technologies that significantly reduce water consumption. Some facilities use little to no water for daily operations, and many operators rely on reclaimed or recycled water rather than potable drinking water.
1500 Gateway has committed not to use potable water for cooling and will instead use an air-cooled design, which dramatically reduces water consumption compared to older evaporative cooling systems.
Data centers pay for the electricity they use and typically fund the substations, transmission lines, and other infrastructure needed to serve them. These investments strengthen the electric grid and expand the utility's customer base, which can help spread fixed costs across more users.
1500 Gateway will pay for the electricity it uses and fund the substation and transmission infrastructure needed to serve it through Dominion Energy. Under Virginia's regulatory structure, large customers like data centers are served under tariff rates approved by the State Corporation Commission, which are designed to recover the cost of serving them. These investments strengthen the regional grid and expand Dominion's customer base, helping spread fixed costs across more users.
A single project generates hundreds to thousands of construction jobs and supports long-term positions in operations, security, facilities management, and engineering. These facilities also drive indirect employment for contractors, suppliers, restaurants, and local service businesses.
1500 Gateway is projected to create 2,100+ construction jobs over the build-out period and approximately 108 long-term positions in operations, security, facilities management, and engineering once operational. Additionally, significant numbers of workers are brought back as the equipment gets upgraded on a regular basis. The project will also drive indirect employment for local contractors, suppliers, restaurants, hotels, and service businesses throughout the construction phase and beyond.
Data centers are among the highest tax-generating land uses. They can provide millions of dollars annually to support schools, police, fire and rescue, roads, and parks while placing relatively low demands on local government services.
1500 Gateway is projected to generate more than $23 million annually in tax revenue for the City of Fredericksburg, including a minimum of $6.3 million just for the school system. This is primarily through personal property taxes on computing equipment. That revenue supports schools, police, fire and rescue, roads, and parks while placing relatively low demands on City services compared to residential or retail development of comparable scale.
Backup generators run only during emergencies and limited periodic testing. They are regulated through federal, state, and local air permits that establish emission limits and operating restrictions.
1500 Gateway's backup generators,located on the I-95 side of the building, will run only during grid outages and limited periodic testing, typically a few hours per generator per year. They will operate under federal EPA standards and a Virginia DEQ air permit that sets emission limits, run-time caps, and testing requirements. The project will specify modern generator technology that significantly reduces particulate and NOx emissions compared to older equipment.
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