On July 2, 2026, GW Acquisition Co., LLC and GW Acquisition Co. I, LLC filed notice withdrawing their petition. The company stated that it had decided, “after careful consideration,” to terminate the project and would proceed with a responsible wind-down. QTS highlighted its long-term investments in Virginia and noted the project would have delivered tens of billions in capital investment, substantial local tax revenue, and thousands of jobs.

QTS was one of two major data center operators planning to develop facilities in the Prince William Digital Gateway. The second operator, Compass Datacenters, had already withdrawn its intent to build its portion of the project earlier this year. With QTS now dropping its final legal challenge, the entire project is officially dead.

The withdrawal ends a years-long effort. In July 2021, the Prince William Board of County Supervisors initiated Comprehensive Plan Amendment CPA2021-00004 to designate a technology corridor for data centers. The Board adopted the amendment on November 1, 2022. Rezoning applications followed, and the Board approved the specific rezonings in December 2023 after a roughly 27-hour public hearing.

Lawsuits by the Oak Valley Homeowners Association, the American Battlefield Trust, and residents challenged the approvals. In August 2025, Prince William Circuit Court Judge Kimberly A. Irving voided the rezonings. On March 31, 2026, the Virginia Court of Appeals unanimously affirmed, ruling the county failed to meet strict public notice requirements under state law and its own ordinance. The Board withdrew from the appeals in April, as did co-developer Compass Datacenters. QTS continued alone until this week.

The local outcome reflects a broader rift within Virginia Democrats over data center policy in 2026. During the General Assembly session and budget negotiations, Senate Democrats, led by Finance Chair Louise Lucas, Democrat, Portsmouth, pushed to end or phase out the state’s sales and use tax exemption for data centers, which is estimated to cost nearly $2 billion annually. They argued that the breaks primarily benefit major companies, including Amazon, Microsoft, QTS, and Stack Infrastructure, while raising costs for ratepayers.

Governor Abigail Spanberger, Democrat, and House Democrats favored preserving or reforming the incentives, citing job creation and economic investment, and proposed tying them to environmental standards or further study. The disagreement contributed to a budget impasse and special session.