Blackstone-owned QTS has halted the $600mn Prince William Digital Gateway data centre project in Virginia following intense local opposition. Protests and lawsuits over the site’s proximity to a Civil War battlefield forced the company to abandon plans despite claims of a “rigorous process” of community engagement. Activists hailed the decision, calling it a victory for preserving the area’s historical integrity.

The move highlights growing backlash against data centre expansions in rural U.S. regions, where companies like Google, Microsoft, and Meta are racing to build facilities to support AI growth. Virginia’s controversial $0.011-per-kilowatt-hour tax on data centre energy use—with refunds above $600mn—reflects policymakers’ attempts to balance economic incentives with public concerns. Meanwhile, Senator Bernie Sanders and groups like Stop Project Sail advocate for stricter moratoriums, underscoring political pressure on tech giants.

Public opposition to data centres is widespread, with 71% of Americans opposing local construction per a Gallup poll. Executives like Exelon’s Calvin Butler admit hyperscalers were “caught flat-footed” by the pushback, accusing them of operating without community input. As debates intensify, Blackstone’s retreat signals shifting dynamics in the tech infrastructure boom, where profit motives clash with environmental and cultural preservation demands.