en.Wedoany.com Reported - QTS Data Centers has officially withdrawn from its proposed 2,100-acre data center campus in Prince William County, Virginia, terminating the Digital Gateway project.
This decision follows a prolonged legal battle with local residents, with details disclosed in a recent court filing by the Supreme Court of Virginia. The project originally planned to build up to 37 data center facilities with a maximum planned capacity of 5 gigawatts (GW), expected to drive approximately $100 billion in spending, and was intended to become one of the largest technology corridors in the world.
QTS is a subsidiary of Blackstone, a global investment firm. Prior to QTS's withdrawal, Compass Datacenters had already exited the project, leaving QTS as the sole developer. In court documents, QTS stated that after careful consideration, the company decided to terminate the Digital Gateway project and withdraw the relevant application documents.
The company noted that the project could have brought significant infrastructure investment to the county, including tens of billions of dollars in capital investment, substantial annual local tax revenue, and thousands of long-term jobs.
The termination of the Digital Gateway project is seen as a major victory for civil society in Northern Virginia. The project faced opposition due to the rezoning of agricultural and semi-rural land, but the Prince William County Board of Supervisors approved the rezoning plan in December 2023. Subsequently, the American Battlefield Trust and nine local residents filed a lawsuit in January 2024, and the Oak Valley Homeowners Association also filed a separate lawsuit.
In August 2025, Circuit Court Judge Kimberly Irving ruled the rezoning invalid, citing inadequate review and insufficient public notice. The Virginia Court of Appeals upheld this ruling on March 31, 2026, prompting the county to cease defending the rezoning and ultimately leading to the withdrawal of Compass Datacenters and QTS.
Despite this setback, the data center market in Northern Virginia continues to attract investment, driven by improved fiber density and favorable tax incentives. According to a report by Mordor Intelligence, the market is expected to grow to 20.32 GW by 2026, with capacity projected to more than double to 43.52 GW by 2031, representing a compound annual growth rate (CAGR) of 3.38%. While QTS's withdrawal is notable, it is unlikely to deter future investment in the region, which remains a critical hub for global internet traffic.
