Amazon swaps four Loudoun data centers for 25 acres and $5 million

Amazon has decided to stop building four new data centers in Loudoun County, Virginia, and instead convert the 122-acre site into residential and mixed-use development. The change follows a deal that includes a $5 million contribution to the county's housing fund.

The former George Washington University campus sits just outside Washington, D.C. Amazon will keep the land for housing projects but give up a portion of it to the public. Specifically, the company will donate 25 acres to Loudoun County. Local officials plan to build a community arts center and a new recreational facility on that land.

This location is unusual for a tech retreat. Loudoun County is often called Data Center Alley because it hosts the largest cluster of such facilities in the world. However, neighbors have complained about the noise and the high electricity consumption of these buildings. The county has become more cautious about approving new projects in recent months.

Amazon originally filed its proposal for the four data centers in July. In September, Phyllis J. Randall, the chair of the Loudoun County Board of Supervisors, met with company representatives. She suggested they look for a different use for the land.

Josh Weissman, Amazon's vice president for data center development, explained that the company moved quickly to purchase the site when it became available. He noted that the company listened to the county's specific worries about building at this exact location. Weissman said the two sides agreed that working together was better than fighting in court. He described the shared vision as the best outcome for everyone involved.

The shift happens as demand for data centers rises due to artificial intelligence. This growth has caused friction in many areas, with residents worrying about rising energy costs and water usage. President Donald Trump recently called on large data center builders to pay dividends to local communities. He also proposed that these facilities generate their own power and sell any extra electricity back to the grid.

Randall said the result came from choosing dialogue over conflict. She stated that the agreement creates new spaces for residents to gather and play. Most importantly, she said, it provides more affordable homes for working families in the county.