Virginia farm worth $2M listed at $50M as AI data centers drive up land prices
Data center boom inflates VA land prices as $2M farm lists for $50M
A 22-acre family farm in Woodbridge, Virginia, was listed for $50 million despite an assessed value of just $2 million. Experts say it's a money grab aimed at targeting data center developers who are offering inflated prices for land across the region.
WOODBRIDGE, Va. - A family farm in Woodbridge recently hit the market for $50 million, even though it is only worth about $2 million, and one seasoned realtor told FOX 5 the move is a money grab aimed at data center developers.
If the property sells for an inflated price, it could change the housing market.
Data center boom driving up land prices
What we know:
Currently, the farm is listed at $2 million per acre. It's part of a shifting sentiment on data center development in the region.
The National Association of Homebuyers says AI data centers are outbidding home buildings for land nationwide.
Just a few months ago, two of Northern Virginia's biggest land deals closed within days of each other, and neither was for housing. In Prince William County, Amazon purchased nearly 200 acres for $700 million. In Loudoun County, another company purchased nearly 100 acres for more than $600 million.
What they're saying:
Chris Colgan, an agent with Real Brokerage, says data center developers have had "a huge impact" on the local real estate market.
"If you think about it a lot of this land that you saw here in Prince William, Loudoun [counties] especially, would have been built by a developer who would have built houses on it," Colgan said. "What you've seen now is these data canters who are paying $2 million to $3 million an acre. And if you get an offer like that, how could you even refuse that?"
What's next:
The Woodbridge farm is currently zoned for agricultural use, and would require zoning changes for data center or commercial development.
The listing agent for the property refused to speak to FOX 5 on camera, but said that they plan to lower the initial $50 million. Though it's not clear yet what the new number will be.
The sale could reportedly drive up local land values. Often, data center developers outbid residential and even agricultural buyers. In some cases, data center developers are also reportedly reaching out directly to homeowners offering a deal.