Developers have abandoned plans for a large data center project in Prince William County, Virginia, following a protracted legal battle that ultimately upheld a court ruling voiding the project’s approval. The Digital Gateway Project, a joint proposal by QTS Data Centers and Compass Datacenters to construct up to 37 data centers near the Manassas National Battlefield Park, will not proceed after QTS withdrew its appeal last week.

The project had originally been approved in 2023 by the Prince William Board of County Supervisors after an extensive 27-hour public meeting. However, opponents challenged the approval in 2024, arguing that the county failed to provide proper public notice as required by state and county regulations. In August of last year, Virginia Circuit Court Judge Kimberly A. Irving ruled that the notices published by the county did not meet legal standards because they were not issued over two consecutive weeks, as mandated.

This decision was affirmed by the Virginia Court of Appeals earlier this year. Although Compass Datacenters and the county’s board opted not to appeal the ruling, QTS initially planned to escalate the case to the Virginia Supreme Court. The company subsequently reversed course and announced it would terminate project activities in a responsible manner.

In a statement, QTS emphasized that the project had undergone extensive planning, analysis, and public review before securing county approval. The company highlighted the anticipated benefits, including tens of billions of dollars in capital investment, significant local tax revenues, and the creation of thousands of long-term jobs. Nonetheless, QTS acknowledged the legal outcome and committed to winding down the initiative.

Community groups that had opposed the project hailed the withdrawal as a victory after years of activism. Elena Schlossberg, executive director of the Coalition to Protect Prince William County, called the decision a result of persistent community efforts, including multiple lawsuits and electoral recalls. Similarly, David Duncan, president of the American Battlefield Trust, described the outcome as a major win for historic preservation, noting the threat the project posed to the nearby Civil War battlefield.

Meanwhile, the debate over data centers in the county continues. On July 7, the Prince William Board of County Supervisors voted unanimously against another proposed facility, the Dulles South Innovation Center, which would have been nearly twice the size of the Digital Gateway Project. Public hearings on this proposal lasted five hours, reflecting ongoing concerns among residents.

Virginia is home to one of the world’s largest concentrations of data centers, but opposition to new developments has increased amid worries about environmental impacts and strain on the state’s power grid. A recent poll found that only 35 percent of Virginians are comfortable with new data centers in their communities, marking a significant decline from 69 percent three years ago. Additionally, 57 percent of respondents believe data centers are driving up home energy bills, while just 14 percent see them as beneficial in that regard.