Key Moments
- Blackstone’s QTS canceled its planned Digital Gateway data center project in Virginia and withdrew all related filings after years of planning and regulatory review.
- The project had faced sustained local opposition and litigation, despite receiving approval from the Prince William Board of County Supervisors.
- QTS said Virginia continues to be a core market, highlighting investments across Northern Virginia and the Richmond region, including $5 billion in Central Virginia.
Project Termination After Extended Review
On July 2, Blackstone’s QTS stated that it had ended its proposed Digital Gateway data center development in Virginia and pulled the corresponding regulatory submissions. The decision followed years of planning work and a lengthy review process.
Local Resistance Despite County Approval
The data center operator had encountered persistent community resistance and legal challenges to the Digital Gateway proposal. This opposition continued even though the project had been approved by the Prince William Board of County Supervisors.
Data Center Growth and Rising Scrutiny in Virginia
Demand associated with AI and cloud computing has been driving a surge in data center construction across Virginia, which hosts the world’s largest concentration of such facilities. At the same time, the sector’s rapid buildout has attracted growing attention from local communities and policymakers, who have raised concerns about effects on power usage, land and water resources, and the broader environment.
QTS Maintains Focus on Virginia
QTS emphasized that the state continues to play a significant role in its operations. The company pointed to its ongoing commitments in Northern Virginia and the Richmond area, noting investments totaling $5 billion in Central Virginia.
Lost Economic Potential from Digital Gateway
According to the company, the discontinued Digital Gateway project had been expected to deliver tens of billions of dollars in capital investment. QTS said the development was projected to generate substantial recurring local tax revenue and create thousands of long-term jobs in Prince William County.
| Aspect | Details |
|---|---|
| Project Name | Digital Gateway data center project |
| Location | Prince William County, Virginia |
| Status | Terminated; associated filings withdrawn |
| Opposition | Years of local opposition and litigation |
| Local Government Action | Approved by the Prince William Board of County Supervisors |
| Expected Economic Impact (per company) | Tens of billions of dollars in capital investment, substantial annual local tax revenue, and thousands of long-term jobs |
| QTS Investments in Virginia | Investments in Northern Virginia and the Richmond region, including $5 billion in Central Virginia |
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