QTS Withdraws Supreme Court Appeal, Ending Proposed Digital Gateway Data Center Project
QTS has withdrawn its appeal to the Virginia Supreme Court, effectively terminating the proposed Prince William Digital Gateway data center project. This follows earlier withdrawals by Compass Datacenters and successful legal challenges from local groups. The withdrawal concludes a multi-year effort to develop the data center campus.
QTS, through GW Acquisition Co., LLC and GW Acquisition Co. I, LLC, has withdrawn its final appeal to the Virginia Supreme Court, thereby terminating the proposed Prince William Digital Gateway data center campus in Prince William County, Virginia. This decision follows an earlier withdrawal by co-developer Compass Datacenters from its portion of the project.
The project faced years of legal challenges, initiated after the Prince William Board of County Supervisors adopted a comprehensive plan amendment in November 2022 and approved specific rezonings in December 2023. However, lawsuits filed by groups including the Oak Valley Homeowners Association and the American Battlefield Trust challenged these approvals. In August 2025, Prince William Circuit Court Judge Kimberly A. Irving voided the rezonings, a decision unanimously affirmed by the Virginia Court of Appeals in March 2026, which cited the county's failure to meet strict public notice requirements.
Both the Board and Compass Datacenters withdrew from subsequent appeals in April, leaving QTS to continue the legal fight alone until this week's withdrawal. The project's termination reflects ongoing tensions within Virginia's political landscape concerning data center development and tax incentives, with Senate Democrats advocating for an end to sales and use tax exemptions for data centers, while Governor Abigail Spanberger and House Democrats favor preserving or reforming them.