Virginia Court Deals Another Blow to Massive PW Digital Gateway Data Center Project

Virginia Court Upholds Block on Controversial Data Center Campus April 2, 2026 A major data center development in Northern Virginia has been halted again, highlighting the growing regulatory and community challenges facing the industry's expansion into sensitive areas. The Virginia Court of Appeals has unanimously upheld a lower court's decision to block the proposed Prince William Digital Gateway, a multi-gigawatt campus that would have been one of the largest in the world. The court ruled that Prince William County failed to provide proper public notice before moving forward with the rezoning approvals for the project. The decision sides with a coalition of opponents, including the American Battlefield Trust, the Oak Valley Homeowners Association, and local landowners, who filed lawsuits challenging the county's process. The proposed campus, spearheaded by developers QTS and Compass Datacenters, planned to transform approximately 2,100 acres of rural land in Manassas into a massive data center hub. The county board had approved the rezoning in December 2023 following an intense 27-hour public hearing. At full build-out, the project envisioned up to 37 buildings, with QTS targeting around 11.3 million square feet of space and Compass planning up to 11.55 million square feet. Opponents of the project celebrated the ruling. David Duncan, president of the American Battlefield Trust, stated, "The Court of Appeals agreed with the position we have taken for years: the County did not properly advertise this nightmarish proposal or make its text available to the public, despite the extraordinary public impact." Environmental and conservation groups emphasized the project's proximity to historic and natural resources. Chris Miller of The Piedmont Environmental Council called the decision "a huge win for local communities, national parks, and the environment," citing concerns over impacts on the Manassas National Battlefield Park and Conway Robinson State Forest. Kyle Hart of the National Parks Conservation Association added, "Constructing and operating this massive data center complex would have devastating consequences for this iconic piece of American history." The ruling represents a significant setback for a project that has been mired in controversy since its inception, facing opposition over its environmental footprint, impact on a Civil War battlefield, and transformation of a rural landscape. Prince William County officials said they are reviewing the decision and noted that it can be appealed within 30 days, stating, "The county’s policy is that the county does not comment on active litigation." The decision underscores the increasing scrutiny data center projects face regarding land use, transparency, and their effects on community and historical assets, potentially setting a precedent for future developments near protected sites. Source: datacenterdynamics

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