QTS: QTS has made the decision to terminate the Digital Gateway project and withdraw its associated filings

Compass Datacenters has officially withdrawn from the Prince William Digital Gateway project, marking a significant development in the protracted legal and regulatory battle surrounding the initiative. In a statement, Compass President AJ Byers confirmed the company’s decision not to appeal the recent court ruling that invalidated the project’s zoning approval. Byers emphasized the company’s commitment to being a responsible community partner and expressed gratitude for the relationships built during the five-year process.

The project, which aimed to develop a gigawatt-scale data center campus on 2,100 acres along Pageland Lane, had faced mounting legal challenges since its initial approval in December 2023. A Virginia appeals court recently upheld a prior ruling that the zoning was invalid due to insufficient public notice. With Compass withdrawing and Prince William County officials confirming they will not appeal the decision, the project’s future appears uncertain.

Landowners involved in the project are also seeking to terminate their contracts with QTS, alleging improper execution of purchase agreements. QTS has filed a countersuit to prevent these terminations. The project’s collapse has already cost the county over $1.7 million in legal fees, and further financial implications remain to be seen.