Blackstone Sells Data Center Stakes as QTS Exits World’s Largest AI Campus Project

Northern Virginia is a major global data center hub, where demand from AI and cloud computing has intensified pressure on electricity, water and land. Blackstone-owned QTS and Compass had planned to build the 2,100-acre Digital Gateway in Prince William County, with as many as 37 buildings. The project, near Manassas National Battlefield Park, became embroiled in litigation amid concerns over the environment and historic preservation, as well as opposition from residents.

On June 29, 2026, Digital Realty agreed to acquire stakes in three data centers from Blackstone-affiliated funds for $3.5 billion, comprising $1.2 billion in cash and $2.3 billion in stock. The assets were valued at $7.8 billion and had 288 MW of capacity. On July 2, QTS withdrew its appeal before the Supreme Court of Virginia, ending the Digital Gateway development. The two moves, just days apart, highlighted site-selection challenges and resource constraints facing AI infrastructure, prompting concerns that investment enthusiasm could cool.