The 1500 Gateway project is a proposed data center campus designed to be a good neighbor, while delivering transformative economic benefits to the City of Fredericksburg.

Spanning approximately 80 acres, the project emphasizes a thoughtful design that includes 36 acres of preserved open space and substantial buffers to protect surrounding neighborhoods.

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Economic Impact and Job Creation

1500 Gateway represents a generational investment in Fredericksburg’s future, with an estimated total economic impact exceeding $208 million. Once fully operational, the project is projected to generate over $23 million in annual tax revenue. This revenue is uniquely high-yield, offering 12.5 times more revenue than traditional mixed-use developments, while requiring significantly fewer city services.

The project will also be a major driver for local employment:

• Construction Phase: 1500 Gateway will support more than 2,800 jobs, many of which are high-paying local union jobs, generating over $190 million in wages. It will also have a project labor agreement (PLA), prioritizing local hiring and guaranteeing thousands of good jobs for area residents.
• Permanent Operations: The campus will create over 100 direct, high-wage operational roles, with an average annual salary of $100,000.

Transformative School Funding

A primary benefit of the project is its impact on Fredericksburg City Public Schools. It will provide an estimated $6.3 million, at minimum, in new yearly revenue for the school district. This equates to an additional $1,800 per student each year, providing a stable financial foundation for the district’s more than 3,500 students without adding the overcrowding pressure of residential developments.

The project also includes $40 million in community proffers from the developer to the City of Fredericksburg. This includes $18 million in unrestricted funds the city will control, $20 million dedicated to city public schools and additional public safety and infrastructure funding.

Addressing Utility and Resource Concerns

The developers of 1500 Gateway recognize and understand community concerns regarding local resources and have designed the project to be highly sustainable:

• Water Usage: To protect the city’s water supply, 1500 Gateway has committed to an air-cooled design and will not use potable water for cooling. This approach results in 99% less water and sewer demand compared to a mixed-use development.
• Electrical Usage and Power Bills: The project is not projected to increase residents’ electric bills. 1500 Gateway will pay for the electricity it consumes and fund the necessary substation and transmission infrastructure through Dominion Energy. These private investments actually strengthen the regional grid and help spread fixed utility costs across a larger customer base.