Amazon has abandoned plans to build four data centers on a 122-acre property in Ashburn, Virginia, following opposition from local residents and negotiations with county officials.
Instead, the company has agreed to dedicate part of the site to community facilities and support housing development under a preliminary agreement announced by Loudoun County.
The property, formerly home to George Washington University’s Virginia Science and Technology Campus, was acquired by Amazon Web Services for approximately $427 million earlier this year. Amazon had proposed constructing four data center buildings covering more than 800,000 square feet, but the project faced growing resistance from local leaders concerned about the site’s future use.
Under the agreement, Amazon will transfer approximately 25 acres of land, valued at $65 million, to Loudoun County for a potential community arts center and indoor sports facility. The company has also offered $5 million for the county’s housing trust fund and will work with officials to rezone the remaining 97 acres for mixed-use development, with housing as a primary focus.
The deal, known as Project Potomac Promise, also calls for Amazon to withdraw its data center development application and abandon legal action to pursue the project at the site. County officials said the agreement followed weeks of discussions aimed at finding an alternative that addresses community concerns.
The decision highlights growing tensions over data center expansion in Northern Virginia, a major hub for cloud computing infrastructure commonly known as Data Center Alley. Residents and local officials have increasingly raised concerns about the impact of data centers on electricity demand, noise, land use, and surrounding communities.
However, Amazon’s decision does not signal a broader retreat from data center investment. Demand for computing capacity continues to rise as companies expand their artificial intelligence services and cloud infrastructure. The Ashburn agreement instead shows how local opposition and planning restrictions can force technology companies to reconsider individual projects, even as the industry races to build more infrastructure.
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The county and Amazon still need to finalize the terms of the agreement. If completed, the plan would replace the proposed data center complex with a development focused on housing and community amenities.
