Data Center Project Stalled by Zoning Lawsuits
TL;DR: Multiple data center projects in Chesterfield County face legal and regulatory obstacles after the county tightened zoning rules in January 2026, with a developer's vested rights claim rejected and another project withdrawing its application.
Quick facts
- Who: Washington Single Family Fund, WestDulles Properties, Chesterfield County Board of Zoning Appeals, Board of Supervisors
- What: Proposed data center projects blocked by new conditional use permit requirements and failed legal appeals
- When: June 3 and June 17, 2026
- Where: Chesterfield County near I-95 and Branders Bridge Road
The story
Two data center projects in Chesterfield County have hit significant roadblocks after the county implemented new zoning restrictions beginning January 1, 2026. On June 3, the Chesterfield County Board of Zoning Appeals unanimously rejected an appeal by Washington Single Family Fund, which owns a 90-acre property off Old Bermuda Hundred Road near I-95 in the Bermuda District. The company had argued it held "vested rights" to develop the site under the county's previous zoning rules, which allowed data centers by right in industrial districts.
The dispute centers on a major shift in county policy. In September 2025, the Board of Supervisors approved a comprehensive zoning ordinance overhaul that took effect January 1, 2026. Under the new rules, data center projects countywide became a conditional use, requiring case-by-case approval from county supervisors rather than being permitted automatically. Notably, the grace period allowing other property owners five years to file under old zoning rules does not apply to data center projects.
Washington Single Family Fund, which acquired the property for $462,000 in 2023, contended through its attorney Clark Leming that the planning director lacked authority to impose the new requirement. The county attorney countered that the property lacked an approved site plan before the January 1 deadline, and therefore no vesting had occurred. The Board of Zoning Appeals agreed with the county, upholding the planning director's determination that the company needs conditional use approval.
Separately, on June 17, the Planning Commission rejected a second data center proposal by Reston-based developer WestDulles Properties for a 744-acre site at 16100 Branders Bridge Road. The commission voted unanimously against recommending the project, citing concerns about infrastructure and site access. Following the negative recommendation, WestDulles withdrew its application, stating it will resubmit after addressing concerns including greater alignment with the county's transportation goals. The county Department of Transportation had also declined to recommend the project.
Both cases reflect escalating tension over how Chesterfield will manage rapid growth in data center demand. The county's change in policy came after years of community concerns about data centers, with residents voicing opposition to projects citing water usage, noise, and environmental impacts.
Key players
- Washington Single Family Fund: Landowner seeking to build data center on Old Bermuda Hundred Road property
- WestDulles Properties: Reston-based developer with data center project at James River Industrial Center
- Chesterfield County Board of Zoning Appeals: Rejected developer's vested rights claim
- Andrew J. Fulwider: Chesterfield County Attorney
- Clark Leming: Attorney representing Washington Single Family Fund
Key dates
- 2025-09-18: Board of Supervisors approves ZOMod zoning ordinance overhaul
- 2026-01-01: New zoning ordinance takes effect; data centers become conditional use
- 2026-06-03: Board of Zoning Appeals denies Washington Single Family Fund's vesting rights appeal
- 2026-06-17: Planning Commission rejects WestDulles Properties data center proposal; developer withdraws application
The case for
Supporting data center development could position Chesterfield as a major hub for digital infrastructure, attracting investment and potentially generating tax revenue and jobs. Proponents argue that data centers represent legitimate economic activity on industrial land, and that retroactive zoning changes penalize developers who made good-faith business decisions before the rules shifted.
The case against
The new conditional use requirement allows the county to evaluate each data center project on its merits and community impact, rather than automatically approving them. Residents have raised concerns about water consumption, noise, and environmental effects. Applying the new rules uniformly, including to developers with plans predating the change, treats all property owners equally under the law rather than carving out exceptions for specific interests.
Why it matters: The outcome of these disputes will shape how much data center development Chesterfield accepts going forward, directly affecting the county's tax base, workforce demand, and community character. The cases also establish important precedent on how vesting rights work when local governments change zoning rules.
Places
Development timeline
- 2025-09-18Board of Supervisors approves comprehensive zoning ordinance overhaul: New ZOMod ordinance makes data centers a conditional use requiring Board of Supervisors approval [[source]](https://www.wtvr.com/news/local-news/chesterfield-rezoning-meeting-sept-18-2025)
- 2026-01-01New zoning ordinance takes effect: Chesterfield's revised zoning rules become law, removing by-right status for data centers [[source]](https://www.chesterfield.gov/858/Planning)
- 2026-06-03Board of Zoning Appeals denies vesting rights appeal: Washington Single Family Fund's appeal of planning director's conditional use requirement rejected unanimously [[source]](https://www.wtvr.com/news/local-news/chesterfield-county/proposed-data-center-appeal-denied-june-3-2026)
- 2026-06-17Planning Commission rejects WestDulles data center proposal: Second major data center project denied with developer withdrawing application over infrastructure concerns [[source]](https://www.wric.com/news/local-news/chesterfield-county/tract-withdraws-data-center-application-after-chesterfield-recommends-against-it/)
Related links
- Chesterfield County Planning Department
- Board of Zoning Appeals
- Active Development and Zoning Cases
- Chesterfield County Zoning Ordinance
Read the original at WRIC 8News Local →
Sources
- Chesterfield Zoning Appeals Board denies appeal over proposed data center campus near I-95
- Chesterfield board upholds denial of Bermuda District data center
- Zoning appeals board rejects challenge to permit requirement for data center project in Chester
- Tract withdraws data center application after Chesterfield recommends against it
- Chesterfield supervisors give final approval to ZOMod zoning ordinance overhaul
- Chesterfield County approves major zoning overhaul after 6-year community process
- Developer appealing permit requirement for data center project in Chesterfield