County data center project halted amid legal challenges
TL;DR: Chesterfield County's proposed data center project near I-95 is on hold after the county's Board of Zoning Appeals rejected the developer's vesting rights claim on June 3, 2026, forcing the dispute to circuit court.
Quick facts
- Who: Washington Single Family Fund (property owner), Chesterfield County Board of Zoning Appeals and Board of Supervisors
- What: Proposed 152.7-acre data center and power substation project halted due to dispute over whether new 2026 zoning rules apply to property initially planned under prior ordinance
- When: Board of Zoning Appeals decision issued June 3, 2026; case now in circuit court as of July 2026
- Where: 13508 Woods Edge Road and 1931 Old Bermuda Hundred Road, Bermuda District (near Interstate 95)
The story
The future of a proposed data center campus in Chesterfield County's Bermuda District remains in legal limbo after the county's Board of Zoning Appeals unanimously rejected a developer's appeal on June 3, 2026. The decision has been appealed to Chesterfield County Circuit Court, where the project's fate now rests.
The core dispute centers on vesting rights. In September 2025, the Board of Supervisors approved a comprehensive overhaul of the county's Zoning Ordinance, which took effect January 1, 2026. The new rules changed how data centers are treated countywide: instead of being permitted automatically on industrial land, future data center projects must now obtain conditional use approval from county supervisors, subject to case-by-case review.
Washington Single Family Fund, which owns the nearly 90-acre property at 13508 Woods Edge Road and 1931 Old Bermuda Hundred Road, contended that it acquired vested rights under the previous zoning rules and should not be subject to the new requirements. The property was rezoned from General Industrial (I-2) to Employment Center (EC) under the modernized ordinance and was intended to support a data center and accompanying power substation spanning 152.7 acres total.
The county planning director denied the project application, ruling that no approved site plan existed before the January 1 deadline, meaning vesting had not occurred. The county attorney backed this interpretation. Washington Single Family Fund appealed to the Board of Zoning Appeals, which on June 3 unanimously upheld the planning director's determination, rejecting the developer's vesting rights claim.
The project is now headed to circuit court. The developers have also raised allegations that the county did not follow state law in reviewing the site plan application, claiming a four-month processing delay violated Virginia's statutory time frames for site plan review. The outcome of this litigation will determine whether data center projects proposed before January 1, 2026, are grandfathered under the old rules or must comply with the new conditional use requirements.
Key players
- Washington Single Family Fund: Property owner and developer of the proposed data center project
- Chesterfield County Board of Zoning Appeals: Rejected the developer's vesting rights appeal on June 3, 2026
- Chesterfield County Board of Supervisors: Approved the zoning ordinance overhaul in September 2025 that triggered the dispute
- Chesterfield County Planning Director: Denied the original project application based on lack of approved site plan before January 1, 2026 deadline
Key dates
- 2025-09-01: Board of Supervisors approves comprehensive Zoning Ordinance Modernization overhaul
- 2026-01-01: New zoning ordinance takes effect, making data centers a conditional use requiring supervisory approval countywide
- 2026-03-09: Developer appeals planning director's permit denial for Woods Edge Road data center project
- 2026-06-03: Board of Zoning Appeals unanimously rejects developer's vesting rights appeal
- 2026-07-11: Circuit court review pending; case status as of today
The case for
New zoning regulations requiring case-by-case review of data centers allow the county to evaluate each project's impact on infrastructure, traffic, and community character, rather than approving them by right. This approach gives supervisors and residents a meaningful voice in shaping development and protecting community interests.
The case against
Retroactively applying new zoning rules to projects initiated under prior law creates legal and business uncertainty and potentially confiscates vested development rights. Consistent application of rules in effect when a developer made its investment decision is a cornerstone of fair land-use law and property rights protection.
Why it matters: The outcome will affect not only this project but also establish precedent for how the county treats other developments initiated before the January 1, 2026 ordinance effective date. It may also signal how aggressively the county intends to regulate large industrial facilities going forward and could impact future investment in the county.
Places
Development timeline
- 2025-09-01Board of Supervisors approves Zoning Ordinance Modernization overhaul: Comprehensive zoning ordinance overhaul approved, changing data centers from permitted by right to conditional use requiring supervisory approval [[source]](https://www.chesterfield.gov/5102/Zoning-Ordinance-Modernization-Project)
- 2026-01-01New zoning rules take effect: Modernized zoning ordinance becomes effective; data centers now require conditional use approval countywide instead of being permitted by right on industrial land [[source]](https://www.chesterfield.gov/5102/Zoning-Ordinance-Modernization-Project)
- 2026-03-09Developer appeals permit denial: Washington Single Family Fund appeals planning director's denial of its data center project application [[source]](https://richmondbizsense.com/2026/03/09/developer-appealing-permit-requirement-for-data-center-project-in-chesterfield/)
- 2026-06-03Board of Zoning Appeals rejects vesting rights appeal: Chesterfield County Board of Zoning Appeals unanimously upholds planning director's determination, ruling that developer has no vested rights under prior ordinance and must comply with new conditional use requirements [[source]](https://www.wtvr.com/news/local-news/chesterfield-county/proposed-data-center-appeal-denied-june-3-2026)
- 2026-07-11Case proceeds to circuit court: Developer's appeal moves to Chesterfield County Circuit Court; developers also raise claims that county violated state law in site plan review process with alleged four-month delay [[source]](https://www.12onyourside.com/2026/06/03/chesterfield-board-upholds-denial-bermuda-district-data-center/)
Related links
- Chesterfield County Planning Department
- Zoning Ordinance Modernization Project
- Chesterfield County Ordinances and Regulations
Read the original at Google News: Chesterfield Data Center →
Sources
- WTVR: Chesterfield Zoning Appeals Board denies appeal over proposed data center campus near I-95
- Richmond BizSense: Zoning appeals board rejects challenge to permit requirement for data center project
- 12 On Your Side: Chesterfield board upholds denial of Bermuda District data center
- Chesterfield County: Zoning Ordinance Modernization Project
- The Chesterfield Report: Data Center Project Stalled by Zoning Lawsuits
- Data center project paused amid county lawsuits