Blackstone-QTS Abandons Virginia Digital Gateway Data Center After Local Pushback
BX•Blackstone-owned QTS canceled its planned Digital Gateway data center project in Prince William County, Virginia due to land, power and community opposition. This shift from chip supply constraints to infrastructure siting challenges may delay Blackstone's projected yields on its digital infrastructure investments.
1. Cancellation of Digital Gateway Project
Blackstone subsidiary QTS formally abandoned its proposed Digital Gateway data center in Prince William County, Virginia, after local authorities denied land use approvals and utility providers could not guarantee the required power capacity amid community opposition.
2. Shift in AI Infrastructure Bottleneck
With semiconductor supply constraints easing, developers now face a new bottleneck: securing suitable land, high-voltage power connections and community support, making infrastructure siting as critical as chip availability for AI deployments.
3. Implications for Blackstone’s Infrastructure Investments
The project cancellation could postpone expected cash flows from QTS’s development pipeline and increase overall build costs, prompting Blackstone to reassess site selection criteria and engage more proactively with local regulators and stakeholders.
