Investing.com -- Blackstone Inc.'s QTS has decided to abandon plans to build its portion of a 2,100-acre data center campus in Virginia, according to a Bloomberg report Thursday.

The data center developer had planned to convert more than 800 acres in Northern Virginia's Prince William County into part of one of the world's largest technology corridors. The project faced strong opposition from homeowners and has been delayed by lawsuits due to its location on the edge of a historic Civil War battlefield and on land previously protected from development.

QTS executives reportedly decided in recent days that continuing the court battle is not worthwhile. The firm's attorneys plan to inform the court of their decision as soon as this week, the report said.

The withdrawal represents another setback for Virginia's "Digital Gateway" project, a site roughly twice the size of New York's Central Park with power requirements comparable to a city. The initiative was expected to generate approximately $100 billion in spending and establish one of the world's largest technology corridors.

The aggressive expansion plans of data center oprators the have clashed with public concerns about pressure on electricity grids and home prices from AI data centers.

The "Digital Gateway" had also been the subject of contentious and lengthy public hearings.