Blackstone's QTS terminates Digital Gateway data center project in Virginia

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Skip to navigationSkip to main contentSkip to right columnADVERTISEMENTReutersFri, July 3, 2026 at 12:16 AM GMT+2 1 min readJuly 2 (Reuters) - Blackstone's QTS said on Thursday it had terminated its planned ‌Digital Gateway data center project in Virginia ‌and withdrawn the associated filings after years of planning ​and regulatory review.The data center operator has faced years of local opposition and litigation over the project, despite it being approved by ‌the Prince William ⁠Board of County Supervisors.Demand for AI and cloud computing has fueled a ⁠boom in data center construction across Virginia, home to the world's largest concentration of such ​facilities.However, the ​industry's rapid expansion ​has drawn increasing ‌scrutiny from local communities and policymakers over its impact on electricity demand, land and water use, and the environment.QTS said Virginia remains a major part of its business, citing investments ‌in Northern Virginia and ​the Richmond region, including $5 billion ​in Central ​Virginia.The Digital Gateway project was expected ‌to bring tens of ​billions of ​dollars in capital investment, generate substantial annual local tax revenue and create thousands of ​long-term jobs ‌in Prince William County, according to the ​company.(Reporting by Dharna Bafna in Bengaluru; ​Editing by Vijay Kishore)Terms and Privacy PolicyEU DSA contactPrivacy & Cookie SettingsMore Info