Data center firm Compass has dropped out of the gigawatt-scale PW Digital Gateway project in Virginia following a recent ruling blocking the development.

First reported by the Prince William Times and InsideNoVA, an attorney representing Compass Datacenters said the company will not appeal the most recent court ruling blocking the Digital Gateway project, which aimed to develop on land along Pageland Lane in Prince William County.

QTS and Compass had filed to develop thousands of acres of greenfield land in Manassas for a massive data center development totaling dozens of buildings. However, a Virginia appeals court this month upheld a previous ruling that the project’s zoning was invalid.

“Compass has reached the unfortunate conclusion that we cannot move forward with the Prince William Digital Gateway project,” said AJ Byers, president, Compass Datacenters. “While we still believe this project offered significant benefits for the region and our neighbors, recent legal actions and compounding regulatory hurdles have effectively closed a viable path forward.

Byers continued: "Over the past five years, Compass has been guided by its commitment to being a good neighbor in Prince William County. We are deeply grateful for the many wonderful relationships we have built in the community, and for the incredible patience and trust of our partners throughout this process. Moving forward, our focus is on supporting the community and local families as we navigate this transition.”

It is unclear whether QTS will still attempt an appeal before the Supreme Court of Virginia. The companies have until Thursday, April 30, to petition the case to the Virginia Supreme Court.

DCD has reached out to QTS for comment.

“For the past two and a half years, we have stood up for not only threatened hallowed ground, but for the rule of law,” said David Duncan, president of the American Battlefield Trust. “We call on QTS to follow the lead of Compass and the Prince William County Board of Supervisors and finally put an end to this nightmare.”

Another nail in the coffin for the gateway

QTS and Compass were originally given the green light for the 2,100-acre, multi-gigawatt development in December 2023 after a marathon 27-hour public meeting.

However, legal challenges were filed arguing that the project’s zoning was invalid because proper public notice was not given through the correct channels. A judge agreed in an August 2025 decision, revoking the zoning authorization. That decision was upheld by an appeals court earlier this month.

In total, QTS was aiming to develop around 11.3 million gross square feet (1.05 million sqm) of data center space, while Compass hoped to develop up to 11.55 million sq ft (1.07 million sqm) of data center space. The project, one of the first proposed gigawatt-scale campuses, would have totaled some 37 buildings at full build-out.

DCD visited the site back in 2022 ahead of the final vote and has spoken to both proponents and the opposing coalition about the large-scale project.

Compass dropping out follows Prince William County officials confirming this month that the county would not appeal its defense of the invalidated zoning, effectively dropping its support for the project. The county had spent more than $1.7 million in legal fees on defending the gateway development.

The project had been mired in controversy throughout its planning; residents who weren’t willing to sell decried the potential impact on the rural area, its proximity to a Civil War-era battlefield, and the potential environmental impacts of such a large development. Multiple lawsuits had been filed against the project, and the coalition hosted an unanswered protest outside QTS’ existing Manassas data center.

Landowners seek to get out of contract with QTS

InsideNova and PW Times also report that several landowners are now in a legal dispute with QTS about land sales relating to the gateway project.

Mary Ann Ghadban, a landowner along Pageland Lane and one of the original drivers of the project, has filed a lawsuit in the US District Court for the Eastern District of Virginia.

Ghadban and several neighbors allege QTS improperly carried out its purchase and sale agreements with the Pageland Lane landowners. It claims QTS only finalized a purchase agreement with one family without closing with any of the other property owners.

As a result, the plaintiffs claim QTS breached its agreements with the landowners and are entitled to terminate their agreements with the data center firm.

QTS, via GW Acquisition, has filed a countersuit, claiming damages in its effort to prevent “wrongful termination.”

DCD has reached out to QTS and Ghadban for comment.