Datacenter developer drops plans for Prince William County Digital Gateway project

Compass Datacenters has announced its withdrawal from the ambitious Prince William County Digital Gateway project in Virginia. This decision follows a late March ruling by the Virginia Court of Appeals that effectively halted the data center plan, siding with a lower court's finding that the county had improperly fast-tracked a rezoning vote. The development company, which was a key player in the proposed roughly 2,000-square-foot project near the historic Manassas National Battlefield Park, stated it would not appeal the court's decision. Compass cited recent legal actions and regulatory hurdles as primary reasons for its departure. The Digital Gateway project, which envisioned 37 data centers and would have been one of the largest complexes globally, faced significant criticism from environmental groups and nearby residents. Opponents, including the American Battlefield Trust, argued it posed a threat to the historic site and would negatively impact the community. David Duncan, President of the American Battlefield Trust, urged QTS, another company involved, to follow Compass's lead. While Prince William County board members had initially approved zoning for the project in late 2023, they voted unanimously on April 14 not to challenge the appeals court ruling. QTS has not yet publicly stated whether it intends to continue with an appeal, and the company is also facing a separate lawsuit in the U.S. Eastern District of Virginia concerning land purchases.