- Starwood Capital agreed to pay $166.8M for a 42-acre data centers site in Fairfax County, VA.
- The $4M-per-acre deal highlights escalating land prices for data centers in Northern Virginia.
- Starwood is concurrently developing another 60-acre data center site nearby in Herndon.
- Proceeds will help fund Fairfax County’s new police training facilities.
Starwood Makes Major Land Play
According to Commercial Observer, Starwood Capital Group agreed to buy 42 acres of county-owned land in Chantilly, Fairfax County, for $166.8M. The site sits within an underused police training campus at 3721 Stonecroft Boulevard and will support future data center development. The deal now enters a contingency period through early 2027 as Starwood finalizes plans and secures approvals.
Investor Momentum Builds
The sale signals ongoing investor appetite for Northern Virginia land as data center demand grows. Starwood is also working on a 60-acre data center campus, Renaissance Technology Park, in nearby Herndon. That project recently expanded by 400,000 SF after the developer purchased an adjacent parcel for $25M. However, some forecasts suggest another major US market could overtake Northern Virginia in data center capacity later this decade.
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Economic Impact for Fairfax County
Funds from this sale will be reinvested in modernizing Fairfax County’s police training facilities. County officials expect data center development on the site to generate over $20M in annual tax revenue after completion. Construction on new police training infrastructure is targeted for mid-2028 to early 2031.
Data Centers Fuel Land Values
Data centers demand in the region has driven up land prices, evidenced by recent deals, such as Merritt Properties’ $375M sale in Ashburn and SDC Capital’s $615M acquisition in Leesburg. The Fairfax County transaction, at nearly $4M per acre, underscores how critical Northern Virginia has become to the expanding data centers sector.
