Amazon Abandons 122 Acres of Data Centers for $5 Million and 25 Acres

Amazon has dropped plans for four data centers on a 122-acre site in Loudoun County, Virginia, the former George Washington University campus outside Washington, D.C. The company will instead build mixed-use and residential development on most of the land. Amazon will also donate 25 acres to the county for a community arts center and a recreational facility, and contribute $5 million to the housing fund.

Loudoun County is nicknamed Data Center Alley because it holds the largest concentration of data centers in the world. Residents have objected to the noise and electricity use of such facilities, and the county's position on new construction has shifted in recent months. Amazon filed its proposal for the four facilities in July. In September, company representatives met with Phyllis J. Randall, chair of the Loudoun County Board of Supervisors, who raised the possibility of a different use for the land.

Josh Weissman, Amazon's vice president for data center development, said the company had moved quickly to buy the former campus when the opportunity arose. He said the company weighed the county's "pointed concerns about data center development at this particular site." Weissman added: "While we see the property's legal development potential differently than the County does, we concluded that the best outcome for all is to come together on a shared vision for this campus rather than engage in costly litigation."

Demand for data centers has risen with the growth of AI, which requires larger and more numerous facilities to support cloud services and storage. Opposition has grown alongside that demand, with residents citing higher electricity prices, water shortages, and deforestation in areas where facilities are built. Days before the Loudoun County announcement, President Donald Trump called on data center builders and AI hyperscalers to pay local communities a dividend as energy prices rise. In a social media post, he said data centers would be required to generate their own electricity and to return surplus energy to the community.

Randall described the Loudoun outcome as the result of cooperation. "By choosing dialogue over reflexive disagreement, Loudoun County and Amazon created an opportunity for the County," she said in a statement. "This agreement provides new places for our Loudoun residents to gather, create, and play. And, most importantly to me, we will provide more attainable homes for working families."