Blackstone's QTS terminates Digital Gateway data center project in Virginia

Blackstone's QTS said on Thursday ​it had terminated ​its planned Digital Gateway data ​center project in Virginia and withdrawn the associated filings after years of planning and regulatory review.

The ‌data ⁠center operator ⁠has faced years of local opposition and ​litigation over the project, despite it being approved ​by the Prince William Board of County Supervisors.

Demand for AI and cloud computing has fueled a boom ⁠in data ‌center construction across Virginia, home to the world's largest concentration of ⁠such facilities.


However, the industry's rapid expansion ​has drawn increasing scrutiny from local ​communities and policymakers over its impact on electricity demand, land and water use, and the environment.

QTS said Virginia remains a major part of its ‌business, citing investments in Northern Virginia and the Richmond region, including $5 ​billion in ​Central Virginia.

The ⁠Digital Gateway project was expected to bring tens of billions of dollars in capital investment, generate substantial annual local tax revenue and create thousands of long-term jobs in Prince William County, according to the company.