Blackstone's QTS terminates Digital Gateway data center project

Blackstone's QTS said on Thursday it had terminated its planned Digital Gateway ​data center project in Virginia and withdrawn ‌the associated filings after years of planning and regulatory review.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.