Data center project paused amid county lawsuits
TL;DR: A proposed 90-acre data center in Chesterfield County's Bermuda District faces an indefinite pause after the county's zoning appeals board upheld a denial in June 2026, with the developer Washington Single Family Fund now considering circuit court action.
Quick facts
- Who: Washington Single Family Fund (developer), Chesterfield County Board of Zoning Appeals, county planning director
- What: Appeal of data center project denial for approximately 90 acres off Old Bermuda Hundred Road
- When: Zoning appeal denied June 3, 2026; zoning ordinance changed January 1, 2026
- Where: Old Bermuda Hundred Road near I-95, Bermuda District, Chesterfield County
The story
A proposed data center project in Chesterfield County's Bermuda District has hit a legal stalemate after the county's zoning appeals board upheld a planning director's denial on June 3, 2026. Washington Single Family Fund, which owns the nearly 90-acre property off Old Bermuda Hundred Road near I-95, sought to build a data center facility but now faces an indefinite pause as the dispute moves toward potential circuit court action.
The legal battle hinges on the timing of a major zoning ordinance overhaul. Last September, Chesterfield County's Board of Supervisors unanimously approved a comprehensive rewrite of the county's zoning code, known as ZOMod, ending a six-year community process. The new ordinance, which took effect January 1, 2026, changed data center development from a use allowed by right in light industrial zones to a conditional use requiring case-by-case approval from county supervisors. Importantly, the ordinance included no grace period for data center projects filed under the old rules.
Washington Single Family Fund submitted a site plan under the old zoning rules, but the county's planning director determined it had not received final approval before the January 1 deadline. The developer appealed, arguing a vested right to proceed under the prior zoning. The zoning appeals board rejected this claim. Board member Graham Daniels indicated the owner may have arguments to pursue in circuit court, suggesting the dispute is unlikely to end here.
The project's pause reflects Chesterfield's broader pivot on data center policy. In 2025, the county approved rezoning for two Google data center projects (Project Peanut near Meadowville and Project Skye near Moseley), signaling selective support for major operators. However, the new conditional use requirement appears designed to give supervisors case-by-case control over future projects, suggesting the county seeks to balance economic opportunity against community concerns.
Key players
- Washington Single Family Fund: Property owner and developer of proposed data center
- Chesterfield County Board of Zoning Appeals: Upheld planning director denial on June 3, 2026
- Chesterfield County Planning Director: Denied initial permit application based on new zoning rules
- Chesterfield County Board of Supervisors: Approved September 2025 zoning ordinance requiring conditional use permits for data centers
Key dates
- 2025-09-18: Board of Supervisors approved ZOMod zoning ordinance overhaul
- 2026-01-01: New zoning ordinance took effect; data centers became conditional use
- 2026-06-03: Board of Zoning Appeals denied Washington Single Family Fund appeal
The case for
Data center projects bring significant economic benefits: tax revenue, direct and indirect jobs, and infrastructure investment. Google's Virginia expansion represents a $9 billion commitment statewide, with Chesterfield receiving substantial interest. The Bermuda District site's light industrial zoning suggests appropriate location for such facilities. Denying vested-right claims may deter investment and complicate the county's ability to attract or retain major operators.
The case against
Data centers consume enormous amounts of water and electricity, creating infrastructure demands during Virginia's growing energy constraints. Community groups have raised concerns about land use, environmental impact, and whether light industrial zones should host intensive computational facilities. The conditional use approach lets supervisors scrutinize projects case-by-case, protecting neighborhoods and allowing residents a voice before intensive industrial uses are approved. The zoning change reflects resident input from a six-year process.
Why it matters: The outcome will signal whether Chesterfield enforces its new zoning rules or must honor pre-ordinance applications, affecting future data center proposals and developer confidence. The dispute may ultimately determine how aggressively the county can manage data center growth in residential and mixed-use areas.
Places
Development timeline
- 2025-02Chesterfield EDA seeks zoning approvals for data center sites: Economic Development Authority pursues rezoning for Google projects at Watkins Centre and Moseley Road locations [[source]](https://richmondbizsense.com/2025/02/07/eda-seeks-zoning-approvals-for-two-data-center-sites-in-western-chesterfield/)
- 2025-05-29Chesterfield EDA secures zoning approval for two data center projects: Board approves rezoning for 750 Watkins Centre Parkway (350 acres) and 4200 Mosely Road (979 acres) [[source]](https://richmondbizsense.com/2025/05/29/chesterfield-eda-secures-zoning-approval-for-two-data-center-projects/)
- 2025-06-18Chesterfield proposes data center restrictions in zoning update: Planning Commission considers making data centers a conditional use requiring Board of Supervisors approval [[source]](https://richmondbizsense.com/2025/06/18/chesterfield-would-restrict-data-center-development-under-latest-zoning-update-proposal/)
- 2025-08-27Google unveils three data center projects in Chesterfield County: Tech giant reveals Project Peanut (Meadowville), Project Skye (Moseley), and Project Loch (Watkins Centre) plans [[source]](https://www.12onyourside.com/2025/08/27/google-unveils-plan-build-data-center-chesterfield/)
- 2025-09-18Board of Supervisors approves comprehensive zoning ordinance overhaul: ZOMod ordinance unanimously approved after six-year community process; takes effect January 1, 2026 [[source]](https://richmondbizsense.com/2025/09/18/chesterfield-supervisors-give-final-approval-to-zomod-zoning-ordinance-overhaul/)
- 2026-01-01New zoning ordinance takes effect: Data centers reclassified as conditional use; no grace period provided for previously submitted applications [[source]](https://www.wtvr.com/news/local-news/chesterfield-county/proposed-data-center-appeal-denied-june-3-2026)
- 2026-03-09Developer appeals conditional use permit requirement: Washington Single Family Fund challenges planning director determination regarding permit necessity [[source]](https://richmondbizsense.com/2026/03/09/developer-appealing-permit-requirement-for-data-center-project-in-chesterfield/)
- 2026-06-03Zoning Appeals Board denies appeal: Board upholds planning director denial; indicates developer may pursue circuit court action [[source]](https://www.wtvr.com/news/local-news/chesterfield-county/proposed-data-center-appeal-denied-june-3-2026)
Related links
- Chesterfield County Board of Supervisors agendas and minutes
- Chesterfield County Planning and Zoning
- Virginia Courts Case Information System
- Chesterfield County Circuit Court
Read the original at Google News: Chesterfield County →
Sources
- Chesterfield Zoning Appeals Board denies appeal over proposed data center campus near I-95
- Chesterfield board upholds denial of Bermuda District data center
- Chesterfield EDA secures zoning approval for two data center projects
- Chesterfield County approves major zoning overhaul after 6-year community process
- Chesterfield supervisors give final approval to ZOMod zoning ordinance overhaul
- Developer appealing permit requirement for data center project in Chesterfield
- Chesterfield scores a Google trifecta: Tech giant reveals ties to 3 massive sites across the county
- Google files site plan for data center, moves forward with Project Peanut in Chesterfield
- Zoning Board Denies Data Center Campus Appeal Near I-95