Frederick Secures $110M Community Benefits Agreement for Data Center Campus

Frederick County has negotiated more than $110 million in developer-funded community investments tied to the Frederick Digital Campus, along with changes aimed at reducing the impact of the already-approved data center development on surrounding communities.

seal of Frederick County MarylandCounty Executive Jessica Fitzwater announced the agreement September 1 with Catellus, the campus’s master developer.

Catellus will reduce planned data center development by nearly 20%, cut potable water use by 80% once its reclaimed water system comes online, and preserve hundreds of acres at the site.

“This agreement reduces the impact of already approved data center development and secures unprecedented investments in the community,” said Fitzwater. “This is good, responsive government. This is accountability. This is what the people of Frederick County expect and deserve.”

The agreement directs $30 million toward renovations at Carroll Manor Elementary School and $40 million toward a community center and recreational space. Another $14.5 million will support workforce development and career and technical education, while $10.5 million will go toward agricultural land preservation.

The agreement also includes $10 million for perimeter berming, planting, and trails, $5 million for a community solar project intended to reduce energy bills for Adamstown residents, and $1 million for a new fire engine for the Carroll Manor Volunteer Fire Company.

Those investments come in addition to the taxes and fees the development is expected to generate. Catellus projects the completed campus will generate approximately $215 million annually in County tax and fee revenue, along with 9,800 ongoing jobs, according to an economic analysis cited by the developer.

The agreement also scales back the project itself. Catellus says it will reduce planned density by approximately 3.3 million square feet and cut potable water consumption by 80% once the reclaimed water system is complete.

The agreement grew out of recommendations from its 2024 Data Center Workgroup, community listening sessions held earlier this year, and concerns residents raised throughout the public process.

Catellus has applied for a Development Rights and Responsibilities Agreement, beginning the County’s formal public review process. The County is accepting public comments through September 10.

The Frederick Digital Campus is planned for the former Eastalco aluminum-smelting site, which has been idle since 2010.

Visit the Frederick County website for more information.