Two stunning defeats shake Virginia’s data center capital

Two stunning defeats shake Virginia’s data center capital

News ClipE&E News by POLITICO·Prince William County, VA·7/8/2026

Two major data center proposals in Prince William County, Virginia, faced defeat within one week amidst growing community and political opposition. The Prince William County Board of County Supervisors rejected a zoning change for the Dulles South Innovation Center, and developer QTS withdrew from a lawsuit challenging the Digital Gateway project, leading to its demise. These outcomes represent a significant victory for local activists pushing back against data center expansion.

zoningoppositionenvironmentalgovernmentlegal
QTS
Gov: Prince William County Board of County Supervisors, Virginia Supreme Court

Two of the largest data center proposals in the U.S. were defeated in less than a week in Virginia's Prince William County, a rapidly expanding data center market. This marks a significant victory for residents and local political officials who have been increasingly pushing back against the energy and water-intensive facilities.

Late Tuesday, the Prince William County Board of County Supervisors rejected a zoning change that would have allowed the sprawling Dulles South Innovation Center data center complex to proceed on 1,940 acres of homes and farms. This decision followed a five-hour meeting during which over 100 community members voiced their opinions.

Just days prior, the Digital Gateway, a 37-building complex near the Manassas National Battlefield Park that had been approved three years ago, was officially abandoned. Its last developer, QTS, withdrew from a lawsuit challenging the project, which was set to be heard by the state Supreme Court. These double defeats raise questions about the future of data center growth in the world's largest data center hub.