The Data Center Opportunity Zone Overlay District (DCOZOD) in Prince William County, Virginia is set to be eliminated. This will significantly impact how future data center developments are permitted to proceed across the county. Developers with data center projects in planning or early-stage development should act now to evaluate and protect their development rights before the county's regulatory framework shifts.
On March 3, the Prince William Board of County Supervisors approved a resolution initiating a Zoning Text Amendment (ZTA) that aims to significantly curtail by-right data center development. If adopted, the ZTA would eliminate by-right status for property currently within the DCOZOD, meaning that new data center projects would require a special use permit. Such a change would subject projects to discretionary legislative approval by the Board rather than the more predictable and streamlined administrative review process currently in place.
Although the ZTA proposes grandfathering certain projects, it would provide protection only for projects that already meet statutory vesting protections, with minor exceptions. Without additional changes, non-vested projects could face heightened entitlement risk and uncertainty.
While earlier timelines suggested adoption as early as July, county staff now indicate that adoption of the ZTA by the Board will likely occur in September. Even so, the practical window to preserve current and future development rights will close quickly.
Venable is actively engaged with county staff and stakeholders to advocate for clearer and more workable grandfathering provisions, including protections for projects with site plans submitted for county review prior to the amendment's effective date.
Regardless of the amendment, it is imperative that data center developers be fully informed about vested development rights and what steps must be taken to vest a data center project in Prince William County or elsewhere in Virginia. If you are interested in learning more about how Venable can help to preserve your development rights before the Zoning Text Amendment goes into effect, contact Venable attorneys Ked Whitmore, Noah Klein, and Matthew Allman. For more information on Venable's Land Use and Zoning Practice in general, feel free to visit our web page.