Fairfax County OKs $166.8M Sale of 42 Acres in Chantilly to Data Center Developer

Fairfax County to Sell 42 Acres in Chantilly for $167M to Data Center Developer
CRE Market Beat Take
High per-acre pricing and expected tax receipts highlight how public land in data center corridors is being monetized, reinforcing land values tied to digital infrastructure demand.

The Fairfax County Board of Supervisors has approved a major land sale involving part of its Chantilly law enforcement training campus, advancing plans for new data center development on publicly owned land. The decision follows a recent public hearing, after which county leaders authorized the transaction with a private data center developer.

Under the agreement, the county will sell roughly one-third of the training campus, totaling about 41.7 acres, for $166.8 million. The property is located off Stonecroft Boulevard near the Steven F. Udvar-Hazy Center and is currently used for police training activities. The sale price equates to approximately $4 million per acre, reflecting the strong pricing environment for data center-ready land in this part of the county.

The buyer, SCG Global Holdings LLC, is an affiliate of Starwood Capital Group, a Miami-based investment firm. According to reporting cited from the Washington Business Journal, the buyer is already active in the region and is developing a large data center campus in nearby Herndon. The Chantilly site is expected to be repositioned for additional data center facilities once the necessary development steps are completed.

With Board approval secured, Fairfax County and SCG Global Holdings will move into a contingency period that runs through March 24, 2027. During this time, the parties are expected to work through closing conditions and other requirements tied to the 41.7-acre transaction. The land will remain in its current use until the sale is finalized and any development plans are ready to proceed.

County officials project that, once the future data center project on the site is complete and in operation, the property will generate about $20 million in tax revenue. That anticipated fiscal impact adds to the immediate proceeds from the $166.8 million sale, positioning the transaction as both a near-term capital event for the county and a longer-term contributor to the local tax base through data center operations.

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