George Washington University has sold its Virginia Science and Technology Campus to Amazon Data Services for $427,299,350 – roughly $3.5 million per acre. The deal, announced Friday but without disclosing the buyer or price, transfers approximately 122 acres of property in Loudoun County, Virginia, to Amazon.
Expanding Data Center Footprint
The sale adds to the thousands of acres Amazon already holds for data center development, particularly in the “data center capital of the world.” GW will be permitted to continue using the Virginia property for up to five years even as programs, including the School of Nursing, are relocated.
University spokesperson Julia Garbitt confirmed the sale Monday night, stating that GW is not paying Amazon to maintain operations at the Virginia Science and Technology Campus for up to five years. Officials plan to place the proceeds from the sale into a quasi-endowment and pool the funds within the University’s existing endowment portfolio.
Financial Implications for GW
Chief Financial Officer Bruno Fernandes said Thursday that multiple buyers had approached GW about purchasing the property approximately 18 months ago, prompting officials to capitalize on rising land prices. The $427 million sale is intended to aid the University combat financial instability and fund President Ellen Granberg’s modern strategic framework.
Officials will not use the proceeds to address debt accumulated by the Medical Faculty Associates, which has amassed at least $444 million in debt to GW and other lenders in the last six fiscal years. A one-time bonus will be awarded to eligible faculty and staff: $2,500 for full-time employees and $1,250 for part-time employees.
Local Context and Future Development
The VSTC campus houses over 20 degree and certificate programs, 17 research labs, and several University offices, including the Office of the University Controller, the Office of the Registrar, and the Office of the Vice President of Finance and Treasurer. Amazon’s purchase adds to its more than $52 billion investment in Virginia over the last decade and a half, with a further $35 billion pledged by 2040.
Frequently Asked Questions
What is the total acreage of the property sold?
The property consists of roughly 122 acres in Loudoun County, Virginia.
How will George Washington University use the proceeds from the sale?
Officials plan to place the proceeds in a quasi-endowment and pool the funds within the University’s endowment portfolio, as well as fund a one-time bonus for eligible faculty and staff.
What will Amazon do with the property?
Amazon Data Services plans to develop the site into a data or information technology center.
As Amazon continues to expand its data center infrastructure in Northern Virginia, how might this impact the surrounding communities and environment?