QTS Kills Gigawatt-Scale Digital Gateway Data Center Project in Virginia

QTS, the data center operator owned by Blackstone, terminated its Digital Gateway project in Prince William County, Virginia, on July 3, 2026, and withdrew all related legal filings. The move ends a multi-year fight to build a gigawatt-scale campus near Manassas National Battlefield Park.

The project was initially approved in December 2023 after a marathon 27-hour public meeting, but a county court later stripped its zoning authorization over a technicality in how the public notice for the plans was publicized. QTS, along with partner Compass Datacenters and Prince William County, appealed but lost in two Virginia lower courts.

A Gigawatt-Scale Project Derailed by a Technicality

QTS and Compass had planned to develop more than 2,100 acres of greenfield land along Pageland Lane in Manassas. The full build-out called for 37 buildings, with QTS targeting 11.3 million gross square feet (1.05 million sqm) and Compass aiming for 11.55 million sq ft (1.07 million sqm) of data center space. The campus would have been one of the first proposed at the gigawatt scale.

• The project faced sustained opposition from local residents, the American Battlefield Trust, and the Coalition to Protect Prince William County, who argued it would harm the historic Civil War battlefield.
• Compass and the county had already conceded defeat in court, leaving QTS as the last holdout until this week's announcement.
• QTS stated in court documents: “After careful consideration, QTS has made the decision to terminate the Digital Gateway project and withdraw its associated filings.”

Community Opposition and Historic Preservation Prevail

“This is a banner day for the historic preservation community,” said American Battlefield Trust president David Duncan. “Our decision to fight an enormous and inappropriate data center project threatening one of America’s most hallowed historic places has been completely vindicated.” Elena Schlossberg of the Coalition to Protect Prince William County added that the outcome was “a testament to the tenacity and relentless spirit of the people in Prince William County.”

The termination signals growing challenges for large-scale data center developments in areas with strong community opposition and historic sensitivity. Northern Virginia remains the world's largest data center market, but this defeat may push developers to seek sites with fewer regulatory hurdles, potentially in neighboring states or less populated regions. QTS has not announced where it will redirect its planned capacity, but the company continues to operate dozens of other facilities across North America and Europe.