Technology giant Amazon bought a roughly 120-acre satellite campus in Ashburn, Virginia, from George Washington University as part of an increased investment in the commonwealth.
The Washington, D.C.-based university sold its Virginia Science and Technology Campus, or VSTC, for about $427 million to Amazon Data Services, a school spokesperson confirmed Tuesday. The property is more than 30 miles northwest of GW's main campus in the District's Foggy Bottom neighborhood.
Amazon plans to develop the site at some point into a data or information technology center, according to campus newspaper the GW Hatchet, the outlet that first reported the deal. An Amazon spokesperson confirmed the sale with CoStar News and said any considerations for development would involve community input, coordination with local leaders and transparent public processes.
Whatever Seattle-based Amazon does with the property, it likely won't occur for several years. The transaction was structured so it "ensures that GW has the option to keep programs at VSTC for up to five years, allowing the university to continue operating while we plan thoughtfully and deliberately for the future," GW President Ellen Granberg said in a statement.
Northern Virginia remains the world's largest data center market, a property type in demand for powering artificial intelligence and other technologies. Texas is close behind and is expected to eclipse Northern Virginia as the biggest data center market by 2030, according to JLL.
In 2023, Amazon said it planned to invest $35 billion in Virginia to establish multiple data center campuses in new locations across the state by 2040. In the fall, it paid $700 million for a site in Prince William County.
Increasing Virginia investment
Since 2010, Amazon has invested more than $161 billion in Virginia — home to its second headquarters — and created more than 43,000 full- and part-time jobs, along with 117,500 indirect jobs, according to the spokesperson.
While GW said the transaction strengthens the university's long-term financial health, the school acknowledged it does not resolve underlying causes of a structural deficit.
Last year, the university said the fiscal 2026 budget would be based on reducing the preceding fiscal year's total expense budget by 3% to help address that deficit.
George Washington University established the VSTC in 1991. Today, the campus supports research in engineering, physics and chemistry while serving as the home to academic programs and administrative services. At least four properties are on the campus, according to the school's website.
The school's board of trustees passed a resolution directing that a portion of the proceeds be used to establish a new endowment intended to make investments in research and increase resources for student financial aid.
A portion of the proceeds is also expected to be used to provide a one-time bonus payment to eligible GW faculty and staff.