Starwood Files Data Center Plan as Virginia Residents Revolt

Starwood Files Data Center Plan as Virginia Residents Revolt

News ClipThe Real Deal·Alexandria, Fairfax County, VA·7/22/2026

Starwood Capital Group filed a permit application for a two-building data center project at Plaza 500 near the Alexandria town line in Virginia. Residents are strongly opposing a proposed substation for the project, which is located less than 100 feet from homes in the Bren Mar neighborhood. A protest rally is planned for September when the planning commission reviews the proposal.

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Gov: Fairfax County, planning commission

Barry Sternlicht's Starwood Capital Group is advancing its data center development plans in Northern Virginia, despite significant opposition from local residents. The company has filed a permit application for a two-building data center project at the 34-acre Plaza 500, situated near the Alexandria town line.

A central point of contention for residents is a proposed substation on the site, which would be located within 100 feet of homes in the Bren Mar neighborhood. Residents have accused Starwood of attempting to manipulate the approval process, and Fairfax County officials previously rejected a proposal to move the project to a different site in Chantilly. In response, neighborhood residents are organizing a protest rally against the substation, scheduled to take place in September during the planning commission's review of the project.

Starwood, which also has a data center campus under development in Herndon, declined to comment on the allegations. The company recently raised $10.2 billion for its commercial property fund, with more than a third of that capital earmarked for data center investments.