Amazon Data Center Appeal Put on Ice as Virginia Court Case Looms

The Warrenton Board of Zoning Appeals voted unanimously on Feb. 3 to postpone a ruling on whether Amazon has vested rights to build a proposed data center, opting to wait for the outcome of a closely watched lawsuit that could determine the project’s legal foundation.

The board voted 4–0 to defer the appeal, with one member recusing himself due to a conflict of interest. Rather than affirm or overturn the zoning administrator’s denial of vested rights, the board followed the advice of its legal counsel, who warned that any decision could conflict with an active court order and ongoing litigation in Fauquier County Circuit Court.

The underlying case—Cross v. Town of Warrenton—is scheduled to go to trial on March 9.

Why the Board Hit Pause

At the center of the deferral is a January 2025 consent order issued by the circuit court that requires the town and Amazon to maintain the “status quo.” Under that agreement, Amazon halted construction and agreed not to seek further approvals while the lawsuit proceeds.

The board’s attorney cautioned that issuing a ruling on vested rights—regardless of outcome—could be construed as “furthering” the project, potentially violating the court’s injunction. He also pointed to Virginia law that suspends the legal effect of zoning approvals while they are under active judicial review, arguing that the board should not rule on vested rights until the court determines whether the underlying permits are valid in the first place.

Competing Legal Theories

Before voting to defer, the board heard sharply divergent arguments from the town and Amazon.

The town argued that Amazon could not have acted in good faith reliance on its approvals because the project was immediately challenged in court. Town counsel said Amazon knowingly proceeded under legal uncertainty and later agreed to a stop-work order, making any claim of vested rights premature and inconsistent with the court-ordered status quo.

Amazon countered that it had spent millions of dollars and entered binding obligations in reliance on approvals that were valid when issued. Its attorneys argued that “good faith” under Virginia law refers to honesty and absence of fraud—not insulation from litigation—and that the mere existence of a lawsuit does not negate a developer’s right to rely on government actions. Amazon also maintained that the zoning appeals board, as a quasi-judicial body, is not bound by the consent order in the same way as the town council.

How the Dispute Reached This Point

The conflict traces back to 2021, when Warrenton amended its zoning code to allow data centers in industrial districts with a special use permit. Amazon acquired a 41.7-acre site later that year and, despite vocal public opposition, secured council approval of its permit in February 2023. A site development plan followed in April 2024.

Residents sued soon after, alleging procedural defects in the zoning amendment and permit approvals. In January 2025, the parties agreed to freeze the project while the case proceeds.

That pause became more consequential after a shift in local political leadership. In July 2025, the town reversed course and amended its zoning ordinance to prohibit data centers in the industrial district altogether. Amazon responded by seeking a vested-rights determination, citing more than $3.5 million in project expenditures and previously issued approvals.

The zoning administrator denied that request in October, concluding that the pending litigation and stop-work agreement prevented rights from vesting—a decision now effectively on hold.

For now, the future of Amazon’s Warrenton data center rests not with local zoning officials, but with the circuit court, where a ruling could determine whether the project survives—or ends—before construction ever resumes.