Blackstone’s QTS Terminates Its Digital Gateway Data Centre Project in Virginia
QTS has withdrawn its last legal appeal, ending a four-year fight over what would have been one of the world’s largest data centre campuses.
July 3, 2026 – 8:20 am
The data centre operator owned by Blackstone has terminated its Digital Gateway project in Prince William County, Virginia, and withdrawn the legal filings that were keeping it alive. The move, confirmed on Thursday, ends a battle that had already outlasted most of the other parties involved.
The Project’s Vision
The project, approved in December 2023, aimed to become one of the largest data centre campuses globally, spanning roughly 2,000 acres near Gainesville and Manassas, adjacent to the Manassas National Battlefield Park. At full build-out, it would have delivered over 22 million square feet of data centre space, significantly exceeding most existing campuses and contributing to Virginia’s status as the densest data centre market worldwide.
A Troubled Journey
The journey towards approval was fraught with controversy. After a 27-hour public hearing and a closely divided vote, the Prince William Board of County Supervisors approved the rezoning in December 2023. However, two plaintiffs—the Oak Valley Homeowners Association and the American Battlefield Trust—immediately challenged the decision, arguing that the county had not provided adequate public notice before the vote.
Legal Battles
A Prince William County Circuit Court judge ruled last August that the rezoning approvals were invalid due to the notice failure, and the Virginia Court of Appeals upheld this ruling in March. Prince William County and co-developer Compass withdrew from the litigation earlier this year, leaving QTS as the sole appellant in its final appeal to the Virginia Supreme Court.
QTS’s Perspective
QTS framed the loss in terms of missed opportunities, stating that the project would have brought tens of billions of dollars in capital investment, substantial annual local tax revenue, and thousands of long-term jobs to the region. The company, however, emphasized that Virginia remains a key part of its operations, citing roughly $5 billion already invested in the Richmond area.
Broader Context
The termination reflects a broader backlash against data centre growth across the United States. Driven by AI and cloud demand, an unprecedented building boom has sparked concerns among communities near proposed sites regarding electricity and water consumption, noise, and land use. This trend is evident in the roughly 75 data centre projects blocked or delayed nationally in the first quarter of 2026.