QTS ended its pursuit of the Prince William Digital Gateway data center project in Virginia after withdrawing its remaining appeals before the Supreme Court of Virginia on July 2, 2026. The Blackstone-owned data center operator, acting through affiliate GW Acquisition Co., filed notices withdrawing petitions for appeal in cases challenging the rezoning approvals for the proposed development near Manassas National Battlefield Park. The decision leaves lower court rulings that invalidated the county’s rezoning approvals in place.
The withdrawal ends QTS’s involvement in a years-long legal dispute over the approximately 2,100-acre Digital Gateway development in Prince William County. Courts voided the rezoning approvals after finding that the county failed to comply with Virginia’s public notice requirements before approving the project. Prince William County and co-developer Compass Datacenters had already withdrawn from further litigation earlier in 2026, leaving QTS as the final party pursuing an appeal.
QTS said it made the decision “after careful consideration” and would conduct a “responsible and orderly termination of project activities.” The company said Virginia remains an important market and cited investments across Northern Virginia and the Richmond region, including $5 billion of investment in Central Virginia. The Digital Gateway project would have represented one of the largest proposed data center developments in the United States.
• QTS withdrew its petitions for appeal before the Supreme Court of Virginia on July 2, 2026.
• The decision ends QTS’s participation in the approximately 2,100-acre Prince William Digital Gateway development.
• The project site sits near Manassas National Battlefield Park in western Prince William County.
• Virginia courts invalidated the rezoning approvals after finding deficiencies in the county’s legally required public notice process.
• Prince William County and Compass Datacenters had already withdrawn from further litigation earlier in 2026.
• QTS said it will carry out a responsible and orderly termination of project activities.
• QTS said Virginia remains a significant market for the company, citing investments in Northern Virginia and $5 billion of investment in Central Virginia.
“We remain grateful for the relationships built throughout this process and will work toward a responsible and orderly termination of project activities,” QTS said.
🌐 Analysis: Northern Virginia remains the world’s largest concentration of data center capacity, but the Digital Gateway litigation shows that securing land and power does not eliminate permitting and legal risks for multi-gigawatt development projects near residential communities, protected landscapes, and historic sites.
The outcome also removes one of the largest proposed expansions of Northern Virginia’s data center footprint while QTS and other hyperscale developers continue investing in projects elsewhere in Virginia and the United States. For infrastructure operators, the case reinforces the strategic value of geographic diversification as power availability, transmission constraints, permitting timelines, and local community opposition increasingly influence where the next generation of AI data center campuses can be built.
🌐 We’re tracking the latest developments in AI infrastructure and the data centers powering next-generation computing. Follow our ongoing coverage at: https://convergedigest.com/category/ai-infrastructure/
QTS Data Centers PRIVATE COMPANY • BLACKSTONE PORTFOLIO COMPANY Hyperscale and enterprise data center developer and operator supporting cloud, AI infrastructure, enterprise, and government workloads across the United States and Europe. PROFILE UPDATED: JULY 2026 | |
| Overview | QTS Data Centers designs, develops, owns, and operates large-scale data center campuses for hyperscale cloud platforms, AI computing environments, enterprises, and government customers. QTS is privately held as part of Blackstone and operates across major U.S. and European data center markets. |
| Why It Matters | QTS is a significant platform for hyperscale cloud and AI infrastructure deployment. Its campuses are built around large power requirements, phased capacity expansion, network connectivity, and long-term development pipelines. |
| Founded | 2003 |
| Headquarters | Overland Park, Kansas, USA |
| Ownership | Privately held portfolio company of Blackstone. QTS Realty Trust was acquired by Blackstone in 2021 in a transaction valued at approximately $10 billion, including debt. |
| Leadership | David Robey • Co-CEO Tag Greason • Co-CEO |
| Core Technologies | Hyperscale Data Center Campuses • AI Infrastructure • High-Density Computing • Data Center Power Infrastructure • Advanced Cooling • Carrier-Neutral Interconnection • Cloud Connectivity |
| Key Products / Platforms | Hyperscale Data Centers Colocation Cloud Connectivity Interconnection Services Service Delivery Platform |
| Major Milestones | QTS completed its initial public offering in 2013 and expanded through acquisitions and large-scale campus development. Blackstone acquired QTS in 2021. In 2025, founder Chad Williams stepped down as CEO, and David Robey and Tag Greason were appointed Co-CEOs. |
| Recent Development | In July 2026, QTS terminated its planned participation in the Prince William Digital Gateway data center development in Virginia and withdrew associated filings. QTS said Virginia remains an important market, citing continued investment in Northern Virginia and the Richmond region. |
| Target Markets | Hyperscale Cloud AI Infrastructure Enterprise Government Digital Infrastructure |
| Editorial Coverage | Converge Digest tracks QTS developments related to hyperscale data center construction, AI infrastructure capacity, power procurement, advanced cooling, digital infrastructure investment, expansion into new markets, and regulatory and community issues affecting large-scale data center development. |
| Industry Context | QTS operates in the hyperscale and colocation data center market alongside companies including Equinix, Digital Realty, Vantage Data Centers, CyrusOne, STACK Infrastructure, Compass Datacenters, and NTT Global Data Centers. Competition increasingly centers on access to power, land, transmission infrastructure, cooling systems, and the ability to deliver multi-building campuses for AI and cloud customers. |
| Profile Updated | July 2026 |
| Related Knowledge Hubs | QTS • Data Centers • AI Infrastructure |
