Amazon abandons $427 million data center plan in Virginia, donates land to county

Company reverses course after community opposition, will donate 25 acres for community facilities and contribute $5 million to affordable housing

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Amazon has abandoned its plan to build data centers on the former George Washington University campus in Loudoun County, Virginia, forgoing a $427 million investment. The company will instead donate approximately 25 acres of the property valued at $65 million to the county for community facilities and contribute $5 million to affordable housing, under an agreement called 'Project Potomac Promise'.

Amazon is reversing its plan to expand its data center footprint in Virginia, abandoning a $427 million proposal to build data centers on George Washington University's Virginia campus. The company will instead donate roughly 25 acres of the property to Loudoun County for community facilities.

The agreement, dubbed "Project Potomac Promise" by Loudoun County Board of Supervisors Chair Phyllis Randall, calls for Amazon to withdraw its data center site plan, abandon legal action to pursue development on the property, and work with the county to rezone the remaining land for mixed-use development with housing as the predominant use. Amazon will also contribute $5 million to the county's affordable housing efforts through the Loudoun County Affordable Housing Trust Fund.

"My goal was to disallow data centers or infrastructure that could support data centers on this property," Randall said in a press conference alongside Amazon Web Services data center delivery vice president Joshua Weissman. "Through our collaborative, respectful conversations, Amazon has agreed to forego its proposed application for data centers, and of note, forego any legal action to realize data center development on this site."

The reversal follows a contentious process that began in February when GWU president Ellen Granberg announced the university had sold the campus without identifying the buyer. The university's student newspaper, The GW Hatchet, later identified Amazon Data Services as the buyer, which had purchased the property for $427 million. In late July, Amazon filed a site plan for a proposed data center development named "Bridgefield Tech Center," calling for four two-story data center buildings totaling more than 800,000 square feet.

The proposal drew strong opposition from local officials. Algonkian district supervisor Juli Briskman called for county staff to examine the potential effects of the development. "Replacing the George Washington University campus with four massive data center buildings would be a profound loss for our community," Briskman said in a press release. "The site offers a generational opportunity for education, research, housing, and other forms of economic development."

Amazon eventually decided to pursue a deal with Loudoun County. "There was not a moment where it was decided that this was a bad idea," Weissman said. "We just heard from the community. We partnered with Loudoun, and we just decided this was just the right thing to do."

The land donation has a stated fair market value of about $65 million. The land is intended to accommodate a community arts center and an indoor sports and recreation facility. Randall said the county would organize public meetings to solicit residents' input on the redevelopment, and expects the rezoning process to take about a year even under a fast-track schedule.

Amazon has a long history in Virginia's "data center alley," where the highest concentration of data centers in the world is located. According to Weissman, the company has invested more than $63 billion with more than 3,400 Amazon employees in Loudoun County since 2011. The county reported approximately 233 existing data center buildings, representing about 56.5 million square feet of space. Data centers generated approximately $1.2 billion in real and personal property tax revenue in fiscal 2026, or 39% of the county's overall budget.

Weissman said Loudoun will be a focus for Amazon's "Built Together" commitment, which includes tuition assistance for community colleges and local project funding.

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Analysis

Why This Matters

  • The decision signals growing community resistance to data center development even in the world's highest concentration of data centers, potentially affecting future expansion plans in Loudoun County and elsewhere.
  • Loudoun County derives 39% of its budget from data center tax revenue, so the loss of this project will be offset by the land donation and affordable housing contribution but still represents a significant change in land use.
  • The agreement could set a precedent for other communities seeking to negotiate community benefits or restrict data center development.

Background

Loudoun County in northern Virginia is the epicenter of the global data center industry, hosting more than 230 data center buildings. Amazon launched its Northern Virginia cloud region there in 2006 and has invested over $63 billion in the county since 2011. The former George Washington University campus, sold in February for $427 million, had been an academic site. The sale was initially kept confidential until student journalists identified the buyer.

Key Perspectives

Loudoun County Board (Phyllis Randall): Prioritized preventing data center infrastructure on the site and securing community-serving facilities such as a sports arena and arts center, along with affordable housing funding. The board sees this as a collaborative outcome that balances economic development with community needs.

Supervisor Juli Briskman and local opponents: Opposed the data center proposal, arguing that the site presented a generational opportunity for education, research, housing, and economic development that directly benefits residents rather than adding more data center buildings.

Amazon (Joshua Weissman): Described the decision as listening to the community and doing the right thing. The company continues to invest in Loudoun County through its Built Together commitment and other projects, and had earlier announced plans to invest $35 billion in data center campuses across Virginia by 2040.

What to Watch

  • The rezoning process timeline: the county expects it to take about a year, with public meetings to gather input on redevelopment.
  • How Amazon adjusts its data center expansion strategy in Virginia, given this setback in a key county.
  • Whether other local governments in data center hubs adopt similar community-benefit negotiation approaches.

Sources

Checked

10 claims in this story checked against 1 source: 8 supported.

Show each claim
  1. SupportedAmazon abandoned its $427 million data-center plan for the George Washington University campus in Virginia.Fortune | FORTUNE: “Amazon is reversing its plan to expand its data center footprint in Virginia—forgoing its $427 million plan to build data centers on George Washington University’s Virginia campus”
  2. Partly supportedAmazon reversed course after community opposition.Fortune | FORTUNE: ““There was not a moment where it was decided that this was a bad idea,” Weissman said. “We just heard from the community. We partnered with Loudoun, and we just decided this was just the right thing to do.””
  3. SupportedAmazon will donate roughly 25 acres to Loudoun County for community facilities.Fortune | FORTUNE: “The company will donate roughly 25 acres of the property to Loudoun County for community facilities instead.”
  4. SupportedAmazon will contribute $5 million to the county’s affordable housing efforts.Fortune | FORTUNE: “Amazon will also contribute $5 million to the county’s affordable housing efforts through the Loudoun County Affordable Housing Trust Fund.”
  5. SupportedThe land donation has a stated fair market value of about $65 million.Fortune | FORTUNE: “Under the agreement, Amazon is dedicating approximately 25 acres along Route 7 to Loudon County, with a stated fair market value of about $65 million.”
  6. SupportedThe agreement requires Amazon to withdraw its site plan, abandon legal action over the property, and work with the county on mixed-use rezoning with housing as the predominant use.Fortune | FORTUNE: “The agreement, dubbed “Project Potomac Promise” by Loudoun County Board of Supervisors Chair Phyllis Randall, calls for Amazon to withdraw its data center site plan, abandon legal action to pursue development on the property, and work with the county to rezone the remaining land for mixed-use development—with housing as the predominant use.”
  7. SupportedRandall said her goal was to disallow data centers or infrastructure that could support them on the property.Fortune | FORTUNE: ““My goal was to disallow data centers or infrastructure that could support data centers on this property,” Randall said in a press conference alongside Amazon Web Services data center delivery vice president Joshua Weissman.”
  8. Partly supportedBriskman said the site offered a generational opportunity for education, research, housing and other economic development.Fortune | FORTUNE: ““The site offers a generational opportunity for education, research, housing, and other forms of economic development that could directly benefit Loudoun residents.”
  9. SupportedAmazon’s proposed Bridgefield Tech Center comprised four two-storey data-center buildings totaling more than 800,000 square feet.Fortune | FORTUNE: “Named “Bridgefield Tech Center,” the proposal called for four two-story data center buildings totaling more than 800,000 square feet.”
  10. SupportedData centers generated about $1.2 billion in property-tax revenue in fiscal 2026, equal to 39% of the county’s overall budget.Fortune | FORTUNE: “Data centers generated approximately $1.2 billion in real and personal property tax revenue in fiscal 2026, or 39% of the county’s overall budget.”

Zotpaper

Written by June Katz on the Business & markets desk. Claims checked by Ines Fairley, verification. Edited by Angus Burke, chief sub. Plate by Ollie Flash, picture desk.

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