• May 7, 2026: Community Information Exchange
• May 5, 2026: Planning Commission Work Session: Virginia Technology Park
• June 9, 2026: Planning Commission Work Session: Winchester Gateway

• April 22, 2026: Frederick County Attorney issues a memorandum regarding data center regulation.

• August 13, 2025: Frederick County Board of Supervisors directs Staff to further study data centers and provide a report to the Planning Commission and Board explaining some of the common characteristics, concerns, and opportunities associated with data centers as a specific land use.

1. Overall water demand & sources: How much water do data centers use; which sources (Shenandoah River, ground water, intergovernmental agreements) would be tapped; and are those supplies drought‑resilient

• Frederick Water has existing protocols for considering service to all new development.  That process entails working with the developer to understand their water and sewer requirements, Frederick Water’s ability to serve, and identifying what improvements the developer must undertake to utilize Frederick Water’s water and sewer services.  Frederick Water’s rate structure ensures that existing customers are not subsidizing new customers, and residential customers are not subsidizing commercial and industrial customers. 

• Given the wide range of variability for water use by data centers, understanding a data center’s water and sewer requirements is best handled by working with an actual developer, on an actual proposal where the size and location of the property and the proposed data center building sizes and cooling systems are known.
• Frederick Water is a water service system that is fed from diversified water sources - naturally recharging abandoned quarries, production groundwater wells, and the Shenandoah River (via water purchases from the City of Winchester).  Frederick Water owns and/or has easements on 9 quarry reservoirs that ultimately total over 4 billion gallons of raw water storage capacity.
• Frederick Water’s East Pit Advanced Treatment initiative will bring raw water flows from the Opequon Creek into the mix of diversified water sources.  The East Pit Advanced Treatment initiative will also bring the 1.7-billion-gallon East Pit quarry reservoir online, providing drought-resistance for Frederick Water customers for years to come.  This single 1.7-billion-gallon quarry reservoir’s storage capacity would provide Frederick Water with multiple years of water supply to meet its customer demands during a drought, far exceeding most community drought plan strategies which include a minimum of 180-days of supply.  The East Pit Advanced Treatment initiative is slated to be operational in fall 2028.
• It is impossible to predict the future as to drought conditions, but Frederick Water builds into its services the most protection possible to meet the needs of customers during drought conditions.
  
  

2.  Drought prioritization & curtailment: During drought or mandatory conservation, will data centers reduce or cease water usage so residential, agricultural, and small‑business needs are prioritized?

• During a drought, all customers are encouraged to use water responsibly and reduce their water consumption.  Mandatory conservation, prioritization, and enforcement are dictated by Frederick County code, which does not differentiate between water use types for rationing, conservation rate increases, and other drought emergency measures.
  
  

3. Cooling technology: Will facilities be closed‑loop/air‑cooled versus evaporative systems? If evaporative, what happens to the cooling tower water and how is it disposed?

• Frederick County has no ordinance requirements for a specific type of cooling to be used in data center buildings. Total water use and/or cooling technology limitations could be imposed during a rezoning or conditional use permit process.
• However, Frederick Water is prepared to serve the water and sewer demands and low water consumption associated with closed-loop and air—cooled mechanical systems.  Such systems have limited demands for water and generate comparable sewer discharge.  Systems that consume less than 35,000 gallons per day may be easily accommodated by Frederick Water’s existing treatment capabilities.  On the other hand, evaporative systems consume significant volumes of water and discharge concentrated, nutrient-rich wastewater streams which may be difficult to treat, depending on the volume of the concentrate.  Discharge from evaporative systems will need to be evaluated to determine if existing Frederick Water wastewater treatment facilities can accept and treat the effluent. If they cannot, the developer will have to make upgrades or provide on-site pre-treatment. Under no circumstances would it be legal for the discharge to be released directly to the environment.
  
  

4.  Aquifer & well protections: How will the County prevent groundwater depletion and protect private wells?

• County policy encourages all new developments to connect to the public water and sewer system, and the same could be required as a condition or proffer of data center development. In turn, the associated groundwater extraction would be managed by Frederick Water.
• Frederick Water is in a unique position in our region, stemming from a diversity of water sources.  While most public water providers rely on a single withdrawal point on a river, Frederick Water utilizes naturally recharging quarries, production groundwater wells, and wholesale water purchases from the City of Winchester, which utilizes the Shenandoah River.  In addition to monitoring groundwater levels in its source waters, Frederick Water also utilizes a series of groundwater monitoring wells to understand impacts on the local groundwater table.  This information allows Frederick Water to move amongst water sources to avoid over usage of any one source, protecting both Frederick Water customers and its neighbors with private wells.  Because new development within the Frederick County’s Sewer and Water Service Area (SWSA) must utilize public water and sewer, the development’s water needs will be incorporated into Frederick Water’s resource management program. 
  
  

5. Stormwater Management: How will stormwater be managed to protect creeks and water systems?

• All projects will have to meet current Virginia Department of Environmental Quality regulations for Stormwater Management and Erosion & Sediment Control. These are administered locally by the Frederick County Public Works Department.

1.  What types of grid upgrades are needed to serve data centers and how are those upgrades paid for?

• The type of upgrades needed depend on how much energy a data center will require, where it will be located, the infrastructure already in place at that location, and what available capacity that infrastructure has. For REC, most data center projects in our service territory are large enough to require a dedicated distribution substation. Transmission upgrades are also typically needed for larger projects. REC requires the developer to pay 100% of the costs for the distribution substation and to post collateral (such as an irrevocable letter of credit or cash held in escrow) that could be drawn upon to pay 100% of the transmission upgrade costs that would be owed to First Energy should the project be canceled. Because REC is First Energy’s customer for transmission service, not the data centers directly; First Energy would bill REC for transmission upgrades, and the cooperative would recover those costs from the developers.

2. After recent PJM/SVEC/REC warnings about potential rolling blackouts, how will added data center load be managed?

• Rolling blackouts or “load curtailments” are rare, but when they are necessary to preserve the transmission grid, utilities must act quickly.  As a result, utilities have detailed curtailment plans to coordinate their responses. The recent warnings were related to a transmission system constraint on a First Energy transmission line and insufficient generation being available during the extreme cold temperatures. That First Energy transmission line serves specific REC substations. Given the magnitude of that constraint, ALL the load served out of those distribution substations (residential, commercial and industrial) would have been impacted, and with the extreme cold, REC issued the public warnings.

3.  Would data centers be curtailed in a future event?

• REC’s electric service contracts provide that in a curtailment event the data center will be curtailed in like fashion to other customers.  REC’s terms and conditions also discuss actions the cooperative implementing rotating blackouts when required (see Article V.G.). 
• Because data centers typically run 24-7-365, most if not all of them install back-up generators sufficient to meet 100% of their load for several hours.

4. How are co-ops protecting against residential and small business customers rates being impacted by data centers?

• REC is a distribution cooperative. We do not own generation or transmission nor do we directly control the costs of power supply or transmission service. Those costs are a direct pass through from our power supplier and PJM, the regional transmission operator. 
• REC has developed specific rate schedules (also called tariffs) for large load customers like data centers that have been approved by the SCC on an interim basis (meaning the SCC has not issued a final order but let the tariffs go into effect). These tariffs are designed to prevent cross-subsidization. 
• REC’s tariff is called Large-Power Dedicated Facilities Service (LP-DF) and can be found on our web site.  Under REC’s tariff, large load customers pay for the capacity they requested, whether or not they actually use all the power they requested.
• Our efforts are happening in tandem with several ongoing initiatives at the state, regional, and federal levels aimed at ensuring that the costs of new or upgraded generation and transmission needed to serve large loads like data centers are being fairly allocated and that these large loads are not causing grid reliability issues.

5. If the AI/data center market slows or shifts, is there a risk that the infrastructure built to serve them become stranded assets, and if so, who winds up paying?

• As noted above in responses to other questions, REC has tariffs and contracts that include protections to avoid stranded asset exposure, including requiring upfront payments, making developers post collateral for potential future obligations, and having cost recovery mechanisms that ensure the co-op is collecting sufficient dollars from the developers to build the new infrastructure as well as to maintain, replace and/or upgrade those facilities in the future.

1. What noise standards will be used?

• Frederick County code is based upon dB (A) standards. dB(A) weighting approximates human hearing, focusing more on mid-frequencies, where humans are most sensitive. It is the standard for typical environmental noise regulations. Some local governments have begun to adopt ordinances that consider dB(C) weighting as data center equipment emits energy at low frequency (63-250 Hz bands).
• dB(C) weighting gives more focus to low-frequency and impulsive noise and is often used in regulations regarding entertainment noise.
  
  

2.  Will there be 24/7 monitoring and enforceable limits on infrasound and low frequency noise?

• Noise measurements would be taken after a complaint is received to determine whether a violation is occurring.
• Infrasound is sound energy below 20 Hz. This manifests as vibration through the structure and/or the ground. Humans are not capable of hearing these signals but sufficient energy within those frequencies can be felt. There are guidelines for vibration impact limits for residential, and other space usages. Typically, if appropriate vibration isolation is provided for the data center equipment, the probability of infrasound reaching nearby residences is low.

3.  How will sound be mitigated through siting, building orientation, and noise abatement infrastructure?

• County ordinance requires limitations on generator testing, location of mechanical equipment, generator enclosures, setbacks and screening requirements all of which will assist with mitigating noise. Additionally, best practices for noise mitigation relative to mechanical equipment are required (Low-noise emissions fans, acoustic wraps for compressors and oil separators, acoustic perimeter louvered or solid, etc.)
• Environmental Noise Impact Assessments are required to be prepared by qualified professionals and reviewed by the County’s third-party consultant. The results of these impact assessments are included with application materials for Rezoning and Conditional Use Permits looking to establish data center uses.
  
  

4. How will generator testing (allowed by DEQ) be managed to control noise and emissions?

• Generator testing and emergency operation are subject to the County noise regulations. Testing of generators are limited to Monday through Friday between the hours of 8:00am and 5:00pm. Since data center applications will be reviewed legislatively, there is an opportunity to require certain emission standards to be met via proffers or conditions.

Resources:

https://www.pjm.com/-/media/DotCom/about-pjm/newsroom/2026-releases/20260116-pjm-board-outlines-plans-to-integrate-large-loads-reliably.pdf

https://www.nerc.com/initiatives/large-loads-action-plan

https://www.scc.virginia.gov/about-the-scc/newsreleases/release/scc-hosts-load-flexibility-conference---2025/-data-load-flexibility-conference-set.html

https://www.ferc.gov/rm26-4

https://www.nga.org/news/commentary/governors-collaborate-to-ensure-regional-energy-affordability/

https://www.whitehouse.gov/articles/2026/03/president-trump-secures-historic-commitment-to-keep-electricity-costs-down-amid-data-center-boom/

1. What are the projected emissions from diesel or natural gas generators (NOx, PM2.5, ozone precursors)?

• This depends entirely upon the type of generators utilized for the project. The County could require through the Conditional Use Permit or Rezoning process binding conditions or proffers to ensure the generators are of the highest rating for emission reduction technology. This is certainly a valid concern worth paying attention to for any projects proposed in Frederick County.

2. What environmental studies will be required (wildlife, wetlands, pollinators)?

• All development will need to comply with current federal wetland protections and endangered species protections. Pollinators do not have specific regulatory protections at this time, and if the site currently provides pollinator habitat, it can be safely assumed that will not continue to exist post-development.

3. What impacts will data centers have on soil?

• Any form of industrial development will mechanically disturb soil and cover them with impervious surface to the point they will no longer be accessible or usable for agricultural purposes.

4. Will landscaping use native species and support pollinators?

• The County has a landscaping species list that could be modified during the Conditional Use Permit or Rezoning process to further this goal. While the current list contains some native species it does not mandate only native species be planted.

1. How will Frederick enforce “quality over quantity” standards for design, noise, water efficiency, and aesthetics?

• Each project can and will be assessed on a case-by-case basis. Any conditions or proffers carry the force of law and can be enforced via criminal law and court-imposed fines and injunctions.

2. Will more detailed information be required before rezoning approval (e.g., infrastructure studies, noise analysis, power demands)?

• Yes, each project will need to prepare the necessary site assessments and study associated impacts in order to file an application for Rezoning or Conditional Use Permit approval.

3. What setbacks, buffers, and screening will be required, especially for elevated homes?

• 200’ setbacks and a Category C buffer (the highest standard in the County’s ordinance) will be required along all property lines that adjoin residentially zoned properties. In cases of varied topographical heights near the properties being pursued for data centers, viewshed analysis can be prepared in order to determine whether screening will be effective, but it is not a current County code requirement.

4. How will the County ensure vegetative buffers remain healthy and maintained?

• Failure to maintain the required vegetative buffer is a violation of the County’s zoning ordinance and can be enforced by the County criminally.

1. Which officials have signed NDAs with datacenter developers or utility companies?

• Professional staff for the County have signed Non-Disclosure Agreements (NDA) during the initial consideration of large projects that are securing contractual agreements for land, require discretion to protect from competition & land speculation, are considering multiple sites across the State and Country, or have other compelling reasons for privacy during the initial project development. An unwillingness to do so could prevent consideration of the County for a large range of businesses. It is not an uncommon practice and is allowable under the Virginia Freedom of Information Act’s exemption applying to trade secrets, proprietary information, and prospective location and expansion of businesses. For data center development and utility companies specifically, current staff has only been subject to two NDAs, both of which involved firms that are are no longer actively considering projects in Frederick County (the terms of the NDAs remain in force). Staff, specifically the Executive Director of the Economic Development Authority (EDA) often sign NDAs for a wide variety of commercial and industrial projects.

• The County Board of Supervisors has not signed NDAs with datacenter developers or utility companies currently seeking to locate in Frederick County.

2. What conflict of interest safeguards exists for EDA and advisory board members?

• The Virginia Conflicts of Interest Act defines and prohibits inappropriate conflicts and requires disclosure of economic interest. It applies to all officers and employees of State and Local government. COIA identifies specific thresholds for ownership interest or income generated through ownership or employment by a firm involved in a public contract or transaction and requires that the officer or employee disclose their interest and, in some cases, disqualify themselves from participating in the contract or transaction or receiving any benefit from it.

1. Do residents have any mechanism, such as a referendum, to determine whether data centers should be permitted in Frederick County?

• Virginia Code does not allow for a referendum to decide if this land use is allowed in the County. Consequently, the County doesn’t have the authority to add it as a ballot initiative.

2. What legal means exist for residents or the Board of Supervisors to restrict or ban data centers (zoning amendments, moratoriums, ordinance changes)?

• The Board of Supervisors is obligated to act on rezoning or other land use applications pertaining to data center projects and cannot declare a general moratorium on a particular land use. The Board can consider general amendments to the County Zoning Ordinance that would apply to data centers including any that are currently applying for approval to locate and operate in Frederick County. Residents can communicate with the Board and the Planning Commission by attending public hearings related to any rezoning application or zoning ordinance amendments or submitting comments on any such action via email or on the County web site.

3. Will eminent domain be used for infrastructure or utility routing?

• Public Utilities (including electric providers) can utilize Eminent Domain for transmission and substation infrastructure. It is impossible to predict whether it will be used for any given project.

1. What happens if the datacenter market slows or shifts away from current technologies?

• As would be the case for any industrial or commercial property, if the occupant or owner does not continue to conduct a use within the property it would remain vacant until they found a way to utilize it. 

2. Are decommissioning bonds required?

• The County cannot require decommissioning bonds for any use other than Utility Scale Solar in accordance with State Code.

3. Where will decommissioned server and equipment waste go, given replacement cycles of 4–7 years?

• It is common for data center operators to secure contracts with recycling and reuse companies for equipment that is replaced during a refresh. Electronic waste is not currently permitted to be disposed of in the County landfill.

1. What specialized training or equipment will local fire/EMS need for industrial electrical and battery-based emergencies?

• The National Fire Protection Association (NFPA) and Virginia Building Codes contemplate these types of uses and serve to mitigate the dangers they could pose. Furthermore, there are training opportunities currently available that operational staff in Fire and Rescue have taken advantage of and/or will continue to enroll in to deal with the complex situations that could come from fighting fires in these types of facilities. Operational readiness and proactive preparedness are goals of Frederick County Fire & Rescue, and a program would be developed for data centers if they were to locate here. There are strong professional relationships with communities that have data centers already, and many members of Frederick County Fire & Rescue previously worked in those communities.

2. Who pays for the increased demand for emergency services?

• There is not anticipated to be an increase in demand for emergency services if a data center locates in the County. If additional capital resources are needed to potentially serve the facilities, those could be included in proffers or conditions of approval.

3. What are the traffic impacts and what improvements will be required and funded?

• Traffic impacts are typically minimal after construction is complete of data center operations. Nonetheless, the County will review each and every application and if there is anticipated to be traffic impacts, require the necessary studies to identify those impacts and require mitigations during the approval process.

1. What is the potential economic and fiscal impact of data centers in Frederick County?

• Data centers typically create fewer jobs than other industrial uses, but those jobs often pay above average. They also bring significant construction and equipment investment. Data centers can generate significant tax revenue, especially from equipment taxes, while often requiring fewer ongoing public services.

• Different types of business development projects contribute to the community in different ways. Some create more jobs but require more services. Others generate more tax revenue with lower service needs. Maintaining a mix of industries helps support a stable and balanced local economy.

• Data centers present both opportunities and challenges for Frederick County. They can support economic development and provide strong tax revenue, but they can also raise concerns about infrastructure, environmental impacts, and compatibility with surrounding areas. The County’s updated data center ordinance ensures each project is evaluated individually and includes opportunities for resident feedback as part of the decision-making process.