Strasburg Data Center Project Faces Legal Questions Over Zoning Vesting Rights
Strasburg town officials claim Project Tallmadge, a proposed $4.5 billion data center, is vested under old 2014 zoning rules, bypassing requirements for public hearings and a Town Council vote. Legal experts question whether Virginia's vested-rights law supports the town's position, as the project has not received final site-plan approval. The town adopted a new ordinance effective July 1 requiring special-use permits for new data centers, but officials contend Tallmadge is exempt.
The town of Strasburg, Virginia, is proceeding with the review of Project Tallmadge, a proposed $4.5 billion data center campus, under its 2014 zoning rules, thereby bypassing public hearings and a Town Council vote normally required for new data centers. Town Manager Mellanie Shipe and Mayor Brandy Boies maintain that the project has acquired vested rights under the prior ordinance.
However, legal experts and a land-use attorney who reviewed a summary of the public record for The Northern Virginia Daily have expressed doubts about the town's position. Jesse Richardson, a West Virginia University land-use law professor, stated that while zoning determination letters might satisfy the "significant affirmative governmental act" requirement for vested rights, it is unlikely that the developer, Takanock, met the criteria for "good-faith reliance" and "extensive obligations or substantial expenses" within the short timeframe between the initial zoning determination and the new ordinance's adoption. Project Tallmadge's applications have not yet received final site-plan approval, a key element for the protections cited by the town.
The new ordinance, adopted by the Council on March 11, 2025, and effective July 1, requires special-use permits for data centers and mandates that new rules apply to pending applications unless a court finds the project vested or a formal "determination of development rights" is secured. Despite this, Strasburg officials, including former zoning administrator Brian Otis and current zoning administrator Monica McClure, have continued to assert that Project Tallmadge remains governed by the 2014 ordinance. Takanock purchased the project's parcels in May and June 2025, after the town's May 1 letter stating the project would remain vested.
The Northern Virginia Daily's inquiries to Town Manager Shipe about the legal basis for the town's stance mostly yielded references to existing public records and state law, with Shipe declining to offer legal opinions. She confirmed that no application for a "determination of development rights" has been submitted under the new ordinance by Takanock, and the town has not identified an application under the 2014 ordinance's provision for Town Council to recognize vested rights.