Amazon is abandoning its plan to build a data center on a 120-acre site in Ashburn, Virginia. The company has reached an agreement with Loudoun County to rezone the property for mixed-use development, and the construction of data centers will not be allowed.
The decision comes after public pressure and disagreements between Amazon and local authorities over the future use of the land. Loudoun County Board of Supervisors Chairwoman Phyllis Randall said she sought meetings with the company in September after it became clear that a dispute over the use of the property could arise.
Part of the land to be sold to the county
Under the agreement, Amazon will sell 25 acres to Loudoun County for $65 million. A community arts center and an indoor sports complex are planned there.
The rest of the property will be redeveloped for mixed-use, with housing being the main focus. Both market-rate and more affordable housing are planned. Amazon will also contribute $5 million to Loudoun County’s housing fund. The initiative is called Project Potomac Promise.
“Some of our greatest opportunities come in difficult times, when we are willing to sit down together and have the necessary open conversations. That's exactly what happened here,“ says Phyllis Randall.Amazon also drops lawsuit
The company has pledged not to sue the county to build a data center on the site. Amazon purchased the property from George Washington University for $427 million in February 2026.
“Our team jumped at the opportunity when the university offered to sell, but we took the community's clear concerns about building a data center on this site seriously,“ said Josh Wiseman, Amazon's vice president of data center capacity and construction.
He said Amazon and the county had different views on the legal potential of the property, but the company decided that a common vision for the campus was a better option than a lengthy and expensive lawsuit.
Loudown tightens data center rules
The agreement comes amid a policy shift in Ludown County, one of the world's major Internet infrastructure hubs. The local Board of Supervisors is preparing a one-year moratorium on data center approvals, with a final vote expected in November.
In 2025, the county ended the ability for new data centers to be built automatically under current zoning. All new projects must now go through a special approval process.
The land has been used for more than 30 years by George Washington University for its Virginia Science and Technology campus. It houses the school of nursing and research laboratories in engineering, physical and chemical sciences.
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