Coresite, LLC v. County of Fairfax, Virginia

CourtCourt of Appeals of Virginia
DecidedJune 16, 2026
Docket0510254
StatusPublished

This text of Coresite, LLC v. County of Fairfax, Virginia (Coresite, LLC v. County of Fairfax, Virginia) is published on Counsel Stack Legal Research, covering Court of Appeals of Virginia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Coresite, LLC v. County of Fairfax, Virginia, (Va. Ct. App. 2026).

Opinion

COURT OF APPEALS OF VIRGINIA

Record No. 0510-25-4

CORESITE, LLC, ET AL. v. COUNTY OF FAIRFAX, VIRGINIA

Present: Judges Friedman, Chaney and Duffan Argued at Fredericksburg, Virginia Opinion Issued June 16, 2026

FROM THE CIRCUIT COURT OF FAIRFAX COUNTY Susan J. Stoney, Judge

Matthew N. Leerberg (Doug P. Hibshman; Dana Molinari; Fox Rothschild LLP, on briefs), for appellants.

Martin R. Desjardins, Assistant County Attorney (Elizabeth D. Teare, County Attorney; Corinne N. Lockett, Deputy County Attorney; Daniel Robinson, Senior Assistant County Attorney; Office of the Fairfax County Attorney, on brief), for appellee.

PUBLISHED OPINION BY JUDGE KEVIN M. DUFFAN

This appeal asks us to determine whether Fairfax County (the County) may require

CoreSite, LLC, a data center company, to provide customer names to verify that those customers

are paying taxes on customer-owned equipment stored in CoreSite’s data centers. Code

§§ 58.1-3109(6) and -3110, as well as the data center’s customer agreements, give the County

authority to obtain certain information from CoreSite. The County, however, failed to

“specifically identif[y]” taxpayers in its January 2024 summons under Code § 58.1-3110, so that

summons cannot be enforced as issued. Accordingly, we affirm in part, reverse in part, and

remand. BACKGROUND

The facts are not in dispute. CoreSite is a data center company that owns and operates

four data centers in Reston, Virginia. From these data centers, CoreSite provides roughly 300

customers with the ability to access servers and cloud storage directly at the data center.

CoreSite also leases space in its data centers for some customers to store and use their own

equipment. This business model is facilitated through customer agreements that govern the

relationship between CoreSite and its customers. These customer agreements have a

confidentiality provision in which CoreSite agrees to keep the parties and terms of the agreement

confidential. The provision, however, contains a carveout that allows CoreSite to “provide any

information as required to any receiver or governmental or quasi-governmental entity, or to any

person or entity with a valid court order.”

During an earlier lawsuit, the County discovered that “many entities . . . rent space and

put equipment in CoreSite’s building[s].” As a result, in September 2021, the County contacted

CoreSite to investigate the tax implications of tangible personal property at its data centers. The

County requested “a complete and accurate listing of all current tenants at [the data centers] as of

January 1, 2021.” The County cited Code § 58.1-3901 as giving it the power to “require[] every

person owning or operating any office building, office suite, apartment building, house or land”

in the county to provide “a list of the names and addresses of every current tenant” and noted that

“all information furnished under [the] request [would be] confidential” under Code § 58.1-3.

In May 2022, the County again requested that CoreSite “provide a complete and accurate

listing of all current tenants” at the data centers. This time the County cited Code § 58.1-3109(6)

instead of Code § 58.1-3901. In its request, the County noted that Code § 58.1-3109(6)

-2- “mandates that [it] require taxpayers to furnish books of account, records, and information on

personal property, income, and license taxes for ‘any and all taxpayers.’”1

Two months later, in July 2022, CoreSite responded. In its response, CoreSite explained

that it was “substantially concerned” about “the nature and scope of the County’s request.”

CoreSite added that the “County fail[ed] to address whether any of CoreSite’s [c]ustomers

[were] actual Virginia or County ‘taxpayers’ responsible for paying the taxes addressed in the

[May 2022 letter], or to specifically identify such taxpayers.” Because CoreSite did not know if

the “vast majority” of its customers were Virginia or County taxpayers, it argued that the

County’s request shifted the investigative burden on CoreSite to determine which of its

customers were “actual Virginia or County taxpayers.” CoreSite maintained that the County’s

letter requested information about non-Virginia taxpayers and thus was “inconsistent” with the

cited authorities. To that end, CoreSite explained that Code § 58.1-3109(6) “only permits the

County to request information regarding actual Virginia or County ‘taxpayers.’” CoreSite also

contended that it would be “incredibly burdensome and costly for CoreSite” to comply and

investigate which customers were taxpayers. CoreSite concluded by highlighting that its

customer information is confidential and therefore disclosing the information “without a valid

legal basis” would subject CoreSite to “substantial contractual / legal liability from its

[c]ustomers.”

Following CoreSite’s response, the two parties exchanged letters for over a year. In those

letters, the County asserted its authority to request and receive information under Code

1 Code § 58.1-1: “‘Taxpayer’ includes every person, corporation, partnership, organization, trust or estate subject to taxation under the laws of this Commonwealth, or under the ordinances, resolutions or orders of any county, city, town or other political subdivision of this Commonwealth.” -3- § 58.1-3109(6), but CoreSite still refused to provide information—citing a disagreement in

interpreting the statutes.

In January 2024, the County summoned CoreSite under Code § 58.1-3110. The County

noted that CoreSite would be required to appear before it to “answer under oath questions, and

provide information and records.” The County requested the following:

A complete and accurate listing of all current tenants, and/or individuals or entities otherwise leasing, contracting, or using space or receiving services anywhere inside the buildings or other improvements (“CoreSite Customers”), and copies of all related leases or service contracts for all CoreSite Customers, at [the data centers].

CoreSite responded by acknowledging receipt and noted that it “respectfully disagree[d]

with the County’s position and asserted authority to request such documentation and information

from CoreSite.” Later in its response, CoreSite argued that (1) the County sought information

and documents on entities that were not Virginia taxpayers; (2) it was infeasible for CoreSite to

determine its customers’ tax status; and (3) the County failed to specifically identify any

CoreSite customers in the summons, as it was required to do under Code § 58.1-3110. CoreSite

did, however, offer to provide redacted customer agreements.

CoreSite filed a petition for a declaratory judgment under Code § 8.01-184 and a motion

to quash the summons in the Fairfax County Circuit Court. Noting that there was no dispute of

fact, both parties moved for summary judgment. At the summary judgment hearing, CoreSite

argued that the County overstepped its authority and had no basis to request CoreSite’s customer

information. CoreSite’s argument rested on three propositions: (1) the County could request

information only pertaining to “taxpayers”; (2) the County did not meet the requirements of

Code § 58.1-3110, because it failed to identify any taxpayer; and (3) CoreSite’s customer

agreements bar it from giving the County information “even if [it] wanted to.”

-4- In response, the County argued that it had the statutory authority to “seek records and

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