Amazon Offers to Transfer 25 Acres in Loudoun Worth $65 Million Under Preliminary Agreement
Key Facts
The Loudoun County Board of Supervisors voted unanimously Tuesday evening on measures aimed at preventing the George Washington University campus in Ashburn from being used for data centers, under a preliminary agreement with Amazon that reshapes the site's use. Under the understanding, the company agrees to transfer about 25 acres to the county, with a fair market value of $65 million. The county said the parties still need to complete agreements in the coming months, so the understanding remains in progress. The agreement also allows Amazon to retain ownership of about 97 acres, with their rezoning accelerated to permit housing and mixed-use development. The company also said it intends to withdraw its data center application and waive any legal action related to its development at the site.
The land to be transferred to the county could allow for an indoor sports facility and a community arts center, according to its announcement. Amazon also offered to donate $5 million to the county's housing fund, alongside the land arrangements and rezoning of the portion it will retain. Under this allocation, the county would take over about 25 acres for public facilities, while about 97 acres would remain company-owned and be designated for housing and mixed-use development under the new plan. The county did not announce that Amazon would carry out the residential development itself. It said the company acknowledged significant opposition to data centers at the site, while the university continues operations there for the next four and a half years. Amazon Web Services plans to continue using the university's existing buildings for educational purposes.
An Amazon official told The Washington Post that the company had taken the county's concerns about developing data centers at the site seriously, adding that "the best outcome for everyone is to agree on a shared vision for this campus rather than enter into costly litigation." The vote brings a preliminary end to a process that could have led to litigation, but does not complete the agreements the county said are still required. Loudoun is, according to the newspaper, home to the world's largest concentration of data centers. Residents have raised concerns about the noise and heavy electricity demand associated with these facilities. The understanding comes in a region where the physical effects of data center expansion have become a subject of debate among residents and local authorities.
Local planning rules had made the site's future a point of contention before the agreement. In April, a county official said the property was subject to the 1972 zoning law, which could have allowed an application to build data centers as a permitted use without legislative approval from the Board of Supervisors. In September, a majority of the board backed moving forward with consideration of a resolution that could pause decisions for up to 12 months on data center and electrical substation applications requiring legislative approval. The aim was to allow time to review county rules. The preliminary agreement reflects a shift from the possibility of developing data centers at the site to a path involving a land transfer, public facilities and rezoning of the remaining portion. But Loudoun County and Amazon still need to complete their arrangements in the coming months.
The withdrawal from the Ashburn site does not signal an announced retreat from Amazon's broader infrastructure spending plans. In July, the company said it expected capital expenditures of $220 billion during 2026, up from its previous estimate of $200 billion, with spending covering data centers and other technology investments. Amazon also announced it would invest more than $1 billion over the next five years in communities that host data centers, in projects including education, training, water and energy protection, and other local priorities. That places the local agreement alongside major investment plans the company continues to pursue at other sites. The next step in Loudoun remains completing final agreements between the county and Amazon in the coming months.