Natelli Holdings Presents Data Center, Park Proposal In Lusby

LUSBY, Md. — Calvert County residents gathered for a public information session this week as Natelli Holdings officials presented plans for a proposed 133-acre data center campus and a contingent $30 million regional park, drawing questions about infrastructure, workforce, environmental impacts and long-term development in the community.

During the public session, company representatives outlined the proposed data center campus, which would be built on county-owned land originally designated in 2018 for a Dominion Energy Regional Park. Officials said the project could require up to 300 megawatts of power and involve multiple data center buildings, with the developer ultimately leasing or selling the facility to future operators.

In exchange for purchasing the county land, Natelli Holdings proposed relocating the regional park and providing a $30 million bond to secure its construction, according to information presented during the session.

The meeting included breakout tables and subject-matter experts where residents raised questions about wastewater use for cooling, power demand, traffic, noise and transparency surrounding future operators.

Thomas Natelli Jr., vice president of Natelli Holdings, said the company organized the session to provide context, answer community concerns and allow residents to speak directly with subject-matter experts about regional impacts of the proposed data center campus.

Data Center Proposal

Natelli Jr. said the company is proposing to purchase approximately 133 acres of county-owned land originally designated for the Dominion Energy Regional Park and develop a four-building data center campus known as Appeal Digital Park.

“We are proposing to purchase the site from the county, the 133 acres that is called Off-site Area A, where the Dominion Energy Regional Park was originally planned,” Natelli Jr. said. “In consideration of us buying that site, we would move that master plan and park to the property next door, which we feel is a better location regardless of whether the data center goes through.”

As part of the proposal, Natelli Holdings would relocate the previously planned regional park to nearby property surrounded by three public schools, which include Dowell Elementary School, Mill Creek Middle School and Patuxent High School. 

The data center proposal remains in the conceptual phase and would consist of four buildings totaling roughly 200,000 square feet each, with infrastructure designed to support up to 300 megawatts of power. Natelli said the company has completed preliminary power studies and would be responsible for funding necessary infrastructure upgrades.

Documents provided by SMECO, the electric utility serving Calvert County, state that the firms involved with data center development are financially responsible for electric infrastructure upgrades needed to power data center facilities.

“SMECO’s position (consistent with Maryland Law) is that any data center seeking to build in Southern Maryland must directly pay the full cost for all electric transmission or distribution system buildout required to interconnect the data center and provide electric service,” the SMECO document read.

Natelli Jr. also said the facility would use treated wastewater from the nearby wastewater treatment plant for cooling and committed that the project would not rely on groundwater wells.

“What we’re proposing is using treated wastewater from the treatment plant for cooling purposes,” Natelli Jr. said. “It cycles through and then goes back to the facility to be mixed back in with the wastewater. We’ve made commitments to use only non-potable water.”

Natelli Jr. acknowledged that a future tenant or operator has not yet been identified, noting that the project could involve leasing or a partnership with a major technology company.

“We don’t have an end user at this point,” Natelli Jr. said. “Whether it’s Google, Amazon or another partner, we don’t know yet. It’s still early in the process.”

The proposed site is located near existing wastewater infrastructure which developers said could help support the project’s needs.

Project materials provided by Natelli Holdings state, “the Solomons Wastewater Treatment Plant can provide non-potable water to the site, provided the necessary infrastructure upgrades are designed and funded by the data center developer.”

Project materials online indicate the facility would use the treated wastewater for cooling, with water use ranging from zero gallons on cooler temperature days to approximately 1 million gallons during peak summer conditions, and an anticipated average of about 0.4 million gallons per day. Two-thirds of the water would be recycled back to the treatment system, according to project documents.

Potential Economic Impacts

Natelli Holdings officials also discussed economic impacts, including construction-phase employment and long-term tax revenue, while materials provided at the meeting noted that permanent employment at data centers is typically limited compared to other large developments.

According to preliminary information shared during the meeting, the project could support about 110 jobs once operational, and more than 3,700 construction-related jobs during buildout.

According to data on the project website, indirect employment positions could support over 6,000 jobs during construction, and up to 500 when the data centers are operational. Additionally, an estimated $60 million per year could go to the county through tax revenue when the data centers are operational, following an initial $31 million in tax revenue from the sale of the county land. 

Natelli Jr. also said construction of the proposed data center campus would rely heavily on union labor, noting hundreds of skilled trades workers already live in Calvert County. He said projects of this scale typically create significant construction employment and could give local workers the opportunity to work closer to home rather than commuting to Northern Virginia data center jobsites.

“Unions are used significantly with these projects,” Natelli Jr. said. “The Steamfitters have about 700 of their members living in Calvert County, the [IBEW] has between 500 and 600. So that creates a ton of jobs for them to come and work in the county.”

Calvert County Commissioner Earl “Buddy” Hance said the Natelli Holdings proposal remained in the early evaluation stage, with county officials reviewing the potential impacts, benefits and financial considerations associated with the proposed Appeal Digital Park. He said the county is currently working through property appraisals, noting that no agreements or deals have been finalized.

“We’re working on appraisals for the property,” Hance said. “There’s no deals, no deals for anything.”

While acknowledging that construction of a large-scale data center would bring temporary disruptions, Hance said long-term impacts are expected to be limited due to the site’s industrial location and regulatory requirements.

“During construction with any large project there’s going to be a lot of activity that will then fade away once the construction is over,” Hance said. “Long-term impacts we see as minimal, making sure they follow all the rules and regulations that are in place.”

Some Officials Still Have Questions

Calvert County Commissioner Catherine Grasso said she is still evaluating the proposed Natelli Holdings data center and emphasized that additional information and community input are needed before any decisions are made.

Grasso said she initially explored data centers as a potential alternative revenue source for Calvert County, particularly as officials work to balance rising costs and efforts to limit residential growth. She said she believes independent studies and additional public engagement are necessary.

“I looked into data centers to see if it would be a good fit for our community, because it would bring in a tremendous source of revenue,” Grasso said. “I still have more questions than answers, and I think we as a community need a little more time.”

Grasso also stressed that community input will play a significant role in her decision, noting that residents should better understand the proposal and its potential impacts. 

“My bottom line for data centers is I work for the people, and if the people do not want data centers, then I can’t, in clear conscience, vote for data centers because I work for them,” Grasso said. 

Grasso also said the county is looking for income from sources other than residential sprawling, and those considerations should be taken seriously.

“The citizenry has to think, what are we going to do to bring in revenue, so we don’t have to raise taxes — the expenses are growing and growing,” Grasso said.

Calvert County Commissioner Mike Hart emphasized uncertainty about long-term impacts. He said the proposal involves Natelli Holdings purchasing county-owned land originally designated for a park, while constructing that new park at a different location in exchange.

“They want to buy what we call off-site A, the future home of a park from property donated by Dominion,” Hart said. “They say they will acquire another piece of property, build that park, and swap us that park for that piece of property.”

Hart said the proposed site is appealing to developers because of existing infrastructure, including nearby transmission lines and access to treated wastewater, which developers indicated could be used for cooling.

“It’s got a wastewater treatment facility, so they will use the gray water for the cooling process, and the transmission lines are right there,” Hart said.

Hart said that many questions remain about environmental impacts, noise and long-term community impacts. He said he wanted to pursue a two-year moratorium on data center development to allow independent studies and give the county time to better understand potential risks.

“I think that’s the big unknown, people talk about noise, and we have no idea. How noisy is it? How far does it go? There’s more questions than there are answers,” Hart said. “What I want is a two-year moratorium — none of us know anything about this. To change the landscape of this county — we need information.”

The majority of Calvert County commissioners rejected Hart’s proposed moratorium this week. They expressed that their current text amendments processes slow down development enough for independent studies to be made.

Hart also expressed concern about preserving Calvert County’s rural character, saying the long-term impacts of industrial-scale development could outweigh potential benefits such as park construction or tax revenue.

“I want to protect our rural character,” Hart said. “I don’t want Lusby looking like an industrial zone.”

Community Members Share Perspectives

Calvert County resident Teresa Tacik spoke during the opening presentation and questioned the proposed change to the park site. 

“Wait a minute! We got a park that was supposed to be developed as a park, it is now going to be part of your system,” Tacik said, directing her comment toward Natelli Jr. “Who okayed that our park that was donated to us, that even says the upcoming park for Lusby is going to be built here, and then all of a sudden, we’re told that it is not?”

During an interview, Tacik voiced her opposition to the proposed Natelli Holdings data center, citing concerns about transparency, infrastructure strain, environmental impacts and proximity to existing industrial facilities. She said she was frustrated that residents only recently learned about the proposal and questioned why more information had not been shared earlier.

“I am so angry that the commissioners didn’t tell us they were going to do this,” Tacik said. “We just found out about it.”

Tacik also had questions about energy demand, potential noise impacts and cumulative risks associated with the project.

“That’s going to be taking in enough energy to power like 100,000 houses. How is that going to affect us?” Tacik said. “The noise is going to be one thing, there’s going to be an ongoing noise — it’s going to be 24/7.”

Tacik expressed concern about the proposed land swap involving the park site originally donated by Dominion Energy, saying residents expected the park to be developed as originally planned.

“They gave us the land, this is to be the new site for the Lusby park, but we never saw the money, and we never saw the park,” Tacik said.

Solomons resident Len Zuza had questions about the potential energy costs, environmental impacts and long-term development pressure associated with the proposed Natelli Holdings data center.

Zuza said he is concerned that increased energy demand from data centers could shift infrastructure costs to ratepayers, including residents, schools and local institutions. He also had questions about stormwater runoff, impervious surfaces and thermal pollution, noting that large-scale development could affect nearby waterways and ecosystems. Zuza emphasized that he wanted more detailed information before the county moves forward.

“When you have these large impervious surfaces, you don’t get the water going back into the ground and you get more erosion,” Zuza said. “There is additional heat being put into local streams and local waterways, and that is something I don’t know that anybody has addressed.”

Patrick Flaherty, a District 1 county commissioner candidate, raised concerns about transparency, water usage and environmental impacts related to the proposed Natelli Holdings data center. He argued that zoning language added in recent years allowed projects to move forward without sufficient public awareness.

“The entire process has been two years in the making, and the commissioners did not tell the people what was coming,” Flaherty said. 

Flaherty also questioned whether treated wastewater would be sufficient for cooling needs, suggesting additional water sources such as the Patuxent River or aquifers could be required.

“They say they want to use gray water, but they don’t have anywhere near the volume that the center requires,” Flaherty said. “They’ll have to get water from somewhere.”

James McQueen, a candidate for Maryland House of Delegates District 29C and member of the Calvert County Planning Commission, a citizen review board for county planning decisions, said community frustration over the proposed Natelli Holdings data center draws on transparency, land use and industrial development in Lusby.

“They’ve actually known about this project and not made any public announcements until recently,” McQueen said.

McQueen said zoning changes allowing data center development occurred roughly a year to a year and a half ago, adding that many residents only recently became aware of the current proposal. He said residents expressed strong opposition during a recent community meeting.

“I had a meeting with 125 people and they were upset,” McQueen said. “They don’t want it.”

Dominion-Linked Park Proposal

Natelli Holdings outlined plans tied to the previously proposed Dominion Energy Regional Park, which has remained unfunded for years.

The 133-acre site identified for the proposed data center was previously designated for the Dominion Energy Regional Park, using land transferred to Calvert County following the Dominion Cove Point LNG (liquified natural gas) project.

County officials said available funding was not sufficient to build the full park, and the site has remained undeveloped.

Natelli Holdings now proposes purchasing the county-owned property and relocating the park to a nearby location, with the developer funding construction.

Natelli Jr. said that area would provide better access and avoid proximity to industrial uses at the current location, including a landfill, wastewater treatment facility and sheriff’s shooting and training range. He said the company is also proposing a $30 million construction bond to be given to the county to guarantee the park is built if the land sale moves forward.

“What we would do to secure the future of the park being built is post a construction bond with the county,” Natelli Jr. said. “If something happens and we go away, they’re holding $30 million in a bond that they can call and build the park themselves.”

Commissioner Hance also highlighted the proposed regional park as a significant potential benefit, noting the county has struggled for years to fund the previously planned Dominion Energy regional park. He said the proposal could provide new recreational amenities and that the proposed location was better than the industrial site near the landfill.

“The positive impacts are that Natelli is going to build a park that the county hadn’t had the resources to build in 10 or 12 years,” Hance said. “That park would have cost us $50 million to build. He can build it for about $30 million.”

Early concepts for the relocated park include athletic turf fields, trails, recreational amenities and community gathering spaces, with the intent of maintaining key elements from the original Dominion Energy Regional Park master plan while placing the facility closer to nearby schools and residential areas.

Commissioner Grasso said the original Dominion-linked park site remains undeveloped due to limited funding. She said the county currently has a little more than $8 million set aside for the project, which she described as insufficient to build the type of regional park originally envisioned.

“$8 million is not going to cover that park,” Grasso said. “$8 million will not give the people in District 1 what they deserve.”

Grasso said Natelli Holdings’ proposal to relocate and construct a new park could provide upgraded recreational amenities, including turf fields and community facilities, while placing the park closer to nearby schools.

“They will be able to build a state-of-the-art park with turf fields, an announcer’s box and a rec center,” Grasso said. “That is what Natelli is offering to the people of District 1.”

Public Works Director Describes Park Costs, Site limitations And Infrastructure Needs

John Cosgrove, Calvert County’s director of public works, said he does not have a position on the data center proposal but noted that the department’s primary involvement in the Natelli Holdings proposal would center on wastewater reuse infrastructure and the long-delayed regional park.

Cosgrove said Natelli’s plan to use treated wastewater from the Solomons treatment plant for cooling would require significant plant upgrades, including enhanced nutrient removal systems and expanded holding capacity. He said those improvements would have to be funded by the developer, not the county.

“There has to be upgrades done to the plant,” Cosgrove said. “They would end up funding the upgrades to the plant in order to allow them to reuse the water.”

On the park, Cosgrove said the county has long recognized that the original Dominion park site could not be fully developed with the funds available. He said the county started with roughly $9 million and it was never enough to build the full park envisioned in the master plan, which he estimated would now cost about $30 million.

“Money was donated to the county from Dominion to build that park [but] that’s not enough to build a full park,” Cosgrove said. “You’re looking at a $30 million park.”

Cosgrove also said the proposed replacement park would be better located for public use, and that the current planned site was less desirable because of its location. He said a park closer to nearby schools and away from industrial uses would better serve the community.

“The park is scheduled to be next to our current landfill, current wastewater treatment plant, and there’s also our Calvert County sheriff’s deputies’ shooting range on the same property,” Cosgrove said.

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