Blackstone's QTS terminates Digital Gateway data center project in Virginia

July 2 (Reuters) - Blackstone's ‌QTS said ​on ​Thursday it had terminated its planned Digital Gateway data center project ‌in Virginia and withdrawn the associated ⁠filings after years of planning and regulatory review.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.

(Reporting by Dharna Bafna in Bengaluru; Editing by Vijay ‌Kishore)

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