Amazon gives Loudoun County 25 acres and $5M to replace data centers with homes

Amazon has scrapped plans for four new data centers in Loudoun County, Virginia. The tech giant will convert the majority of the 122-acre property into residential and mixed-use developments. This decision follows intense local opposition to the server farm proposal.

As part of the new agreement, Amazon will transfer 25 acres of the land to Loudoun County. The county intends to build a community arts center and a recreational facility on that donated land. Amazon will also deposit $5 million into the county's housing fund.

The site is the former George Washington University campus located just outside Washington, D.C. Loudoun County is known as Data Center Alley because it holds the world's largest concentration of data centers. Residents have long complained about the noise from these facilities and the high volume of electricity they use.

Amazon submitted its original proposal in July. In September, the company met with Phyllis J. Randall, the chair of the Loudoun County Board of Supervisors. Randall suggested the company consider other uses for the land. Josh Weissman, Amazon's vice president of data center development, said the company acted quickly to purchase the campus but respected the county's specific concerns about the site.

Weissman noted that while Amazon viewed the legal development potential differently than the county, both sides agreed on a shared vision to avoid costly litigation. The deal comes as national debate over data centers intensifies. President Donald Trump recently urged hyperscalers to pay local communities a dividend due to rising energy prices. He also stated that new data centers must generate their own power and sell surplus energy to local grids.

Randall described the outcome as a result of dialogue. She said the agreement gives residents new places to gather and create. She added that the deal will provide more attainable homes for working families.