Data Centers: Low-Impact, High-Reward for Frederick

The landscape of Frederick County is changing. As technology becomes more embedded in our daily lives, the infrastructure that supports it—like data centers—needs space to grow. And Frederick is uniquely positioned to capitalize, but does the County have the political leadership to do so?

One of the most talked-about developments is the “Quantum Loophole” data center campus at the former East Alcoa site near Adamstown. This location, long zoned for General Industrial use, offers an ideal setting for a project that brings significant economic benefit while minimizing neighborhood disruption. It’s not new territory—this land has supported heavy industry for decades. What’s changing is how it’s being used: from smoke and noise to fiber optics and climate-controlled computing environments.

VCRE’s owner, Tony “C” Checchia, offers firsthand insight. His Family moved to Frederick just two miles from East Alcoa in 1971. He remembers the smoke and noise that came with manufacturing. Today, he advocates for the cleaner, quieter industrial uses like data centers, which fit the site’s existing zoning and bring high-value economic impact potential without high-impact consequences.

Making the Most of Strategic Land Use

The East Alcoa property isn’t just available—it’s appropriate. Zoned as General Industrial (GI) for over 50 years, the land is surrounded not by neighborhoods, but by agricultural and other industrial-zoned properties. That matters. It means development here doesn’t displace or disrupt residential communities.

What’s more, this isn’t a case of starting from scratch. The site is already a cleaned-up brownfield—meaning the land has been rehabilitated from past industrial use. Building on it now is a form of responsible redevelopment. It allows Frederick to repurpose existing infrastructure while protecting untouched greenfields elsewhere.

While some community members have voiced concerns, it’s important to keep perspective. Data centers are not asphalt/concrete plants or salvage yards. They don’t generate heavy traffic or pollution. They operate quietly and securely, typically employing dozens of skilled workers in HVAC, security, and network management—people who live and spend money right here in Frederick.

The Economic Ripple Effect of Data Centers

Data centers are often viewed as negative energy-consuming buildings full of blinking lights—but their economic impact is anything but negative.

Projects like Quantum Loophole are major economic drivers. Since its arrival, Quantum Maryland has already generated nearly $5 million in recordation and transfer taxes, and its property tax contributions are approaching $1 million annually. As development continues, the annual taxes are expected to exceed $40 million annually, offering a much-needed boost to Frederick’s commercial tax base.

This matters because currently, nearly 80% of Frederick County’s property tax revenue comes from residential taxpayers. That’s a heavy load. By moving ahead with smart commercial development like data centers, the county can help ease the burden on families and homeowners.

But the benefits don’t stop at tax revenue. Data centers stimulate local job markets, from construction and electrical work to specialized IT services. They often spur improvements to infrastructure like roads and power grids, benefiting the broader community. And they can even support local nonprofits and workforce development through corporate partnerships and grants, as seen in other communities nationwide.

Putting Concerns into Context

It’s natural to have questions about any large-scale development, but it’s also essential to put those concerns into perspective. Some worry Frederick could become the next Loudoun County, with over 380 data centers. But that scenario isn’t realistic—or on the table.  Frederick’s approach is deliberate. Data centers are being considered only in designated industrial zones like the former Alcoa property, which represents less than 1% of the county’s total land mass or 30-40 data centers, once completely built out.

Additionally, zoning protections are already in place to ensure that future projects minimize any negative impact on the surrounding area. These aren’t backroom deals—they’re public conversations, with local stakeholders like VCRE and municipal leaders working together to guide development that reflects Frederick’s values.

Tony C. sums it up well: “If we put something else there—say, a distribution warehouse with 18-wheelers coming and going day and night—would we be having the same conversation? Data centers may not be glamorous, but they’re efficient, low-impact, and future-forward, and a lottery ticket for Frederick’s future.”

Opportunities for Investors and Landowners

For investors and landowners in Frederick County, data centers represent a compelling opportunity. As more companies look for scalable, secure infrastructure near major population hubs, Frederick’s location becomes increasingly attractive.

Industrial-zoned land that once had few viable uses now holds significant potential. And thanks to zoning alignment and community support, these projects can move forward —especially when guided by knowledgeable, locally rooted stakeholders like VCRE.

VCRE offers the expertise to navigate the complexities of high-value transactions while ensuring sellers receive fair and transparent offers. For investors, it’s a way to build a portfolio anchored in stable, high-demand assets with strong long-term growth potential.

Smart Growth for Frederick

From a municipal standpoint, data centers tick a lot of boxes. They generate substantial tax revenue without demanding additional public services like schools or libraries. They don’t crowd the roads or require massive new infrastructure. And they breathe new life into underused properties—turning liabilities into assets.

Cities like Quincy, Washington and Henrico County, Virginia have already demonstrated how strategic data center development can elevate entire communities. These towns have used the influx of tax dollars to improve public services, invest in infrastructure, and create jobs—all without sacrificing their identity or quality of life.

Frederick now has the same opportunity: to grow thoughtfully, attract modern industry, and protect its residential charm in the process.

VCRE: Your Guide to Frederick’s Commercial Future

VCRE understands that success in commercial real estate isn’t just about what you build—it’s about how, where, and why you build it. We work closely with landowners, investors, and municipal leaders to guide every step of the process—from zoning research to marketing, negotiation, and final sale.

We know the Frederick market inside and out. More importantly, we care about what comes next—for the people who live here, the businesses that grow here, and the future we all share.

If you’re exploring opportunities tied to the data center expansion or just want a trusted local partner to walk you through your options, let’s connect.