'I don't have a memory of this ever happening in the city': Penzance hopes third time is the charm for 1500 Gateway data center
Developer Penzance is making its third attempt to gain approval for the 1500 Gateway data center project in Fredericksburg, Virginia, after two prior denials by the City Planning Commission. The project, which requires rezoning and includes an electrical substation, faces continued public and councilor opposition. A public hearing before the City Council is scheduled for August 25.
Penzance is seeking approval for its 1500 Gateway data center project in Fredericksburg, Virginia, for a third time, following two previous denials by the Fredericksburg City Planning Commission. The proposal, for an 84-acre site near Cowan Boulevard and Interstate 95, involves constructing two data center buildings totaling one million square feet, a reduced scope from an earlier plan. A public hearing before the City Council is tentatively scheduled for August 25.
The project requires a rezoning from Planned Development-Medical to I-2, general industrial, a change that raises concerns about industrial zoning bordering residential areas. The Planning Commission cited the project's electrical substation location as inconsistent with the city's Comprehensive Plan and its placement outside the designated Technology Overlay District (TOD) as primary reasons for denial. Penzance Vice President Faizan Qureshi stated that the full rezoning process allows for greater public transparency compared to by-right TOD developments.
Penzance has updated its proffers significantly, offering nearly $40 million in cash incentives for city capital improvements, schools, CTE programs, and public safety. The developer also committed to addressing concerns about new overhead transmission lines required to connect to an existing Dominion substation, stating the project would be