(FREDERICKSBURG, VA) — The Baltimore-DC Metro Building Trades Council (BDCBT) and 1500 Gateway LLC, a Penzance affiliate, today announced they have entered into a formal agreement to implement a Project Labor Agreement (PLA) for the construction of Penzance’s 1500 Gateway data center project located in Fredericksburg, Va.
This landmark partnership will ensure that one of the largest private investments in the history of the city of Fredericksburg will be built by a highly skilled, local workforce under standardized terms and conditions that prioritize safety, quality jobs and career opportunities for area residents.
“This agreement reflects a shared commitment to invest both in the economic future of the city of Fredericksburg, and in the people of this community.”
– Greg Akerman, President
Baltimore-DC Metro BuildingTrades Council
“This agreement reflects a shared commitment to invest both in the economic future of the city of Fredericksburg, and in the people of this community.”
– Greg Akerman, President
Baltimore-DC Metro BuildingTrades Council
“This agreement reflects a shared commitment to invest both in the economic future of the city of Fredericksburg, and in the people of this community,” said BDCBT President Greg Akerman. “By setting standards for employment, providing worker protections, and guaranteeing family-supporting wages and benefits, we are guaranteeing that this project will translate into high-quality, local careers and clear pathways for Fredericksburg City residents to learn skilled trades through registered apprenticeships.”
Explaining the importance of having local job opportunities, James Kissler, an apprentice with IBEW Local 26 and new Fredericksburg homeowner said: “I currently drive 75 miles one way to work. It takes me two hours to get home. I do it for my wife and my future kid, and I would love to just drive 20 minutes to work.”
Penzance’s 1500 Gateway project is a master-planned data center campus spanning approximately 84 acres between Plank Road and Cowan Boulevard. The development is slated to include one million square feet of state-of-the-art data center facilities, 37 acres of open space and the completion of a four-lane extension of Gateway Boulevard.
It is estimated that the project, which will hit its peak construction phase in 2029, will create more than 2,800 construction jobs, generating over $190 million in wages. Once complete, the campus is projected to support more than 100 direct, high-wage operational roles, with an average annual salary of approximately $100,000.
“By partnering with the building trades, Penzance is supporting skilled craft professionals in the industry through high-quality career training and employment opportunities.”
– John Kusturiss, Partner at Penzance
“By partnering with the building trades, Penzance is supporting skilled craft professionals in the industry through high-quality career training and employment opportunities.”
– John Kusturiss, Partner at Penzance
“At Penzance, we aim to leave communities better than we found them, and 1500 Gateway is a great example of our commitment to that ethos. This project represents a generational opportunity for the City of Fredericksburg, delivering significant economic benefits while minimizing impact to residents,” said John Kusturiss, Partner at Penzance, the project’s developer. “By partnering with the building trades, Penzance is supporting skilled craft professionals in the industry through high-quality career training and employment opportunities.”
Penzance has committed to an air-cooled design that uses no potable water for cooling, resulting in 99% less water demand than traditional mixed-use developments, virtually eliminating many environmental concerns. 1500 Gateway also preserves 37 acres of open space, protecting the local tree canopy and nearly 20 acres given to the city for the public’s use.
The project is designed to deliver transformative economic benefits while maintaining a sustainable “good neighbor” footprint. The 1500 Gateway project will contribute $20 million to Fredericksburg City Schools — $1 million per year over the next 20 years. In addition, it is projected to generate over $23 million in annual tax revenue for the city, including a minimum of $6.3 million annually specifically for public schools — a 19% increase in local school funding.