QTS, backed by Blackstone, has filed a last-minute appeal to challenge a Virginia court ruling that blocked the 2,100-acre PW Digital Gateway rezoning effort in Prince William County, Virginia. The company submitted its notice of appeal just hours before the May 1 deadline, after the Virginia Court of Appeals upheld a lower court's decision on March 31. This project, intended to be one of the world's largest data center clusters, would involve 34 buildings across 22 million square feet and boasted a power capacity of 1.7 gigawatts. QTS specifically aimed to develop 7.9 million square feet on an 812-acre section of the site.
The Prince William County Board of Supervisors, which initially approved the rezoning in December 2023 after a 27-hour public meeting, unanimously voted on April 15 not to continue its legal defense of the project. The county had already spent over $1.7 million in legal fees. The board, now including more members opposed to data center development, chose not to appeal the decision to the Virginia Supreme Court. This decision represents a potential fatal blow to the project, as the county had been a key ally in its defense.
The legal challenges against the project stemmed from opponents, including the American Battlefield Trust, who argued that proper public notice was not given for the December 2023 public hearing. A circuit court judge agreed in August 2025, revoking zoning authorization, a decision later affirmed by the appeals court in March 2026. QTS maintains that plaintiffs were "fully aware" of the rezoning and that the court found violations to "highly technical notice provisions that harmed no one." The company emphasized the project's potential to bring tens of billions of dollars in investment, millions in annual tax revenue, and thousands of high-paying jobs.
While QTS is pressing on with its appeal, its partner, Compass Datacenters, announced earlier in the week that it would not be appealing the court's decision, effectively abandoning its plans for the Digital Gateway. The American Battlefield Trust and other opposition groups have vowed to continue their fight if the developers pursue the project without county support. This situation highlights a growing public sentiment against data center expansion in Northern Virginia, with a recent Washington Post-Schar School poll indicating 59% discomfort with new data centers, a significant increase from 24% in 2023.
