Colocation Scout / News & Analysis

Virginia regulators cite Google's Project Peanut data center site in Chesterfield County for seven sediment incidents outside its water permit

The Virginia Department of Environmental Quality issued Notice of Violation No. 2026-08-PRO-203 on September 29, 2026 to Peanut LLC, the responsible party for Project Peanut in Chesterfield County, under Virginia Water Protection Permit No. 19-1094. The notice was emailed to a google.com address. It cites unauthorized filling of surface waters outside permitted impact areas reported on seven dates between December 30, 2025 and August 5, 2026, and estimates that about 7,735 linear feet of stream channel and about 1.4 acres of wetland were affected by sediment. [Source 1] Google told local media that heavy rainfall overwhelmed stormwater controls and that it temporarily paused general construction to focus on cleanup. [Source 2]

Virginia regulators cite Google's Project Peanut data center site in Chesterfield County for seven sediment incidents outside its water permit
All news & analysisDevelopment & PowerChesterfield County, VirginiaUnder construction (site work), per DEQ observations of project-related activities from December 2025 to August 2026. Notice of violation issued September 29, 2026; enforcement pending. Google told local media it temporarily paused general construction for cleanup. As of October 12, 2026.

Disclosed terms

Notice
NOV No. 2026-08-PRO-203, issued September 29, 2026 to Peanut LLC [1]
Incidents
Seven reported dates, December 30, 2025 to August 5, 2026 [1]
Stream impact
About 7,735 linear feet with up to 12 inches of sediment [1]
Wetland impact
About 0.75 acre forested and 0.65 acre emergent wetland [1]

The disclosure and our analysis

Evidence dates

Evidence: DEQ Notice of Violation dated September 29, 2026, viewed October 12, 2026; WWBT 12 On Your Side report published October 5, 2026; WTVR CBS 6 report on the notice; VPM News report of July 29, 2026; Chesterfield County notice of an October 27 forum, posted September 24, 2026.

What the notice says

**Parties and permit:** Addressed to Peanut LLC, attention Aaron McGarry, sent by email to a google.com address. Project Peanut, Chesterfield County. Virginia Water Protection Individual Permit 19-1094, issued January 10, 2020 and modified several times, most recently April 9, 2026. [Source 1]

**Incidents:** Peanut LLC notified DEQ by email of unauthorized filling of surface waters outside permitted impact areas on December 30, 2025, March 2, March 20, May 28, July 1, July 31 and August 5, 2026. DEQ staff inspected the site on January 15, February 27, March 4, April 7 and August 13, 2026. [Source 1]

**Estimated impact:** About 7,735 linear feet of stream channel with up to 12 inches of sediment, about 0.75 acre of palustrine forested wetland and about 0.65 acre of palustrine emergent wetland with up to 2 inches of sediment. DEQ says it has not issued a permit authorizing these impacts. [Source 1]

**Late reporting:** DEQ lists five incidents reported between 3 and 15 days after they occurred and cites the permit's 24 hour notice requirement. [Source 1]

**Next steps:** DEQ asked for a response within 10 days to arrange a meeting. It says full compliance and remediation within 30 days may lead to administrative closure; otherwise it may pursue formal enforcement including civil charges. The notice cites statutory civil penalties of up to $32,500 per day of each violation. The notice says it is not a case decision. [Source 1]

Company response and context

Google said significant rainfall overwhelmed existing stormwater controls, that it temporarily paused general construction to focus on cleanup and site stabilization, and that most items in the notice have been addressed, according to WWBT. [Source 2] WTVR reports the response deadline is October 30. [Source 3] VPM reports Project Peanut is one of three Google projects in Chesterfield, with Projects Loch and Skye still awaiting state and federal permits as of late July, and a reported total investment of about $9 billion. [Source 4] Chesterfield County will hold a public data center forum with Google, Chirisa and Dominion Energy on October 27. [Source 5]

Buyer analysis

This is our analysis.

**This is a construction risk signal, not a capacity signal.** The notice establishes that site work has been under way and that DEQ is weighing enforcement. It says nothing about power, buildings or delivery dates.

**Schedule exposure is the open question.** Google's statement that general construction was paused is the item buyers should watch. The reviewed sources do not say when work resumed or whether the delivery schedule changed.

**Permits for the sister sites may face closer review.** Project Skye still needs a Virginia Water Protection permit, according to VPM. A violation record at a nearby project could lengthen that review. That is our inference, not a DEQ statement.

**Richmond area context.** The Richmond market draws hyperscale demand partly as an alternative to Northern Virginia. Environmental compliance and local sentiment are becoming part of the delivery risk for large self-build campuses there.

What remains unknown

The reviewed sources do not disclose Project Peanut's power capacity on any basis, building count, delivery schedule, whether construction has resumed, or any penalty amount. DEQ declined to comment on pending enforcement, according to local reports.

Sources

  1. Virginia Department of Environmental Quality, Notice of Violation No. 2026-08-PRO-203 · Published 2026-09-29
  2. WWBT 12 On Your Side · Published 2026-10-05
  3. WTVR CBS 6 · Published 2026-10-05
  4. VPM News · Published 2026-07-29
  5. Chesterfield County · Published 2026-09-24

Explore the market

Related reporting

Development & Power

Serverfarm tops out ARK1 at its Clarksville, Arkansas campus, a building the company lists at 108 MW

Serverfarm has topped out ARK1, the first building at its Clarksville, Arkansas data center campus, DCD reported on October 12, 2026, citing a LinkedIn post by chief executive Avner Papouchado the previous week. [Source 1] Serverfarm's own campus page lists four buildings, ARK1 through ARK4, each with 108 MW of building capacity across 300,000 square feet on two floors, and says the first two buildings are expected to be complete by January 2028. The page does not say whether 108 MW is critical IT load or utility capacity. [Source 2]

Clarksville, Johnson County, Arkansas · Under construction. ARK1 topped out, per DCD on October 12, 2026 citing a CEO post the prior week. Serverfarm targets its first two buildings for January 2028. Not energized or available per the reviewed sources. As of October 12, 2026.
Read the analysis
Development & Power

Anne Arundel County passes a data center moratorium that stops new applications but lets filed plans and adjacent expansions proceed

The Anne Arundel County Council passed Bill 63-26 by a 7-0 vote on October 5, 2026, according to the county's legislation page. [Source 1] The amended bill text posted by the county bars the county from accepting new applications of any type for a proposed data storage center during an Effective Period that runs from the bill's effective date until the earlier of January 31, 2028 or the effective date of comprehensive rules based on a work group's recommendations. Plans filed before that period begins, and future phases of existing data centers on adjacent or adjoining properties, may proceed. [Source 2] The bill also repeals the county's personal property tax assessment reduction for qualified data storage centers. [Source 1]

Anne Arundel County, Maryland · Approved. Bill 63-26 passed by the Anne Arundel County Council, 7-0, on October 5, 2026; moratorium runs from the effective date to the earlier of January 31, 2028 or comprehensive rules. Effective date not stated on the county page. As of October 12, 2026.
Read the analysis
Development & Power

Taylor, Texas approves an annexation agreement for the 664-acre Taylor Technology Campus, binding the data center and on-site power project to reclaimed water cooling and noise limits

The Taylor City Council voted unanimously on October 8, 2026 to approve a development agreement with Big Watt Digital and PowerHouse Data Centers that brings the 664-acre Taylor Technology Campus, formerly Project Mustang, into city limits, according to local news reports. The campus plan includes data center facilities and on-site power generation. Under the city's published terms, the developers must use closed loop cooling with reclaimed water, keep data centers and power generation at least 700 feet from the south property line, hold noise to the greater of 65 dBA or the pre-development level, and commit $28.2 million to community investments. The city projects $1.38 billion in gross tax revenue over 20 years and says the developers did not request tax abatements with this agreement. [Source 1] [Source 2] [Source 3]

Between FM 112 and U.S. 79, east of Taylor, Williamson County, Texas · Approved. Taylor City Council approved a development agreement for annexation and development conditions on October 8, 2026, as reported by KUT and CBS Austin. Not established: tenant, power capacity, construction or availability. As of October 9, 2026.
Read the analysis