Amazon scraps four data centers for Loudoun County housing and arts center

Amazon has withdrawn its proposal to construct four new data centers on a 122-acre parcel in Loudoun County, Virginia. The company will instead develop the former George Washington University campus into mixed-use and residential properties. This shift follows sustained opposition from local residents who objected to the facility's potential noise and energy demands.

The new agreement requires Amazon to donate 25 acres of the site to Loudoun County. Those lands will host a community arts center and a new recreational facility. Amazon will also contribute $5 million to the county's housing fund. The site is located just outside Washington, D.C., in a region known as Data Center Alley due to its dense concentration of such facilities.

Amazon submitted its original plan in July. In September, Phyllis J. Randall, chair of the Loudoun County Board of Supervisors, met with company representatives. Randall suggested that Amazon might find a better use for the land than data storage. Josh Weissman, Amazon's vice president for data center development, stated that the company acted quickly to purchase the property when it became available. He noted that Amazon considered the county's specific concerns about development at this location.

Weissman said the company viewed the legal development potential of the land differently than the county did. He explained that Amazon chose a shared vision to avoid costly litigation. "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," Weissman said.

The retreat occurs as demand for large-scale computing facilities rises due to artificial intelligence growth. This expansion has often clashed with local concerns over rising electricity prices and water usage. National leaders have also joined the debate. President Donald Trump recently urged data center builders to pay local communities a dividend as energy prices increase. He proposed that these facilities generate their own power and sell surplus energy back to the grid.

Randall described the final deal as a result of cooperative dialogue. "This agreement provides new places for our Loudoun residents to gather, create, and play," Randall said in a statement. "And, most importantly to me, we will provide more attainable homes for working families."

The county will begin planning the arts center and recreational facility on the donated land. Amazon will proceed with its residential and mixed-use construction plans on the remainder of the 122-acre site.