Virginia Court Ruling Deals Blow to Data Center Expansion

Got story updates? Submit your updates here. ›

A recent Virginia Court of Appeals ruling has thrown out rezoning decisions for the Prince William Digital Gateway project, a major data center development in the state. Former state senator Chap Petersen, D-Fairfax, says this ruling signals a broader retreat for the data center industry in Virginia, which has been a hub for these facilities.

Why it matters

Data centers have become a major economic driver in Virginia, but this court ruling and ongoing budget battles could threaten the industry's continued growth in the state. The decision raises questions about the approval process for new data center projects and the industry's influence with state and local governments.

The details

The Virginia Court of Appeals overturned the rezoning approvals for the Prince William Digital Gateway, a planned 2,133-acre data center development in Prince William County. The court ruled that the county's approval process for the rezoning was flawed. This decision marks a significant setback for the data center industry, which has rapidly expanded across Northern Virginia in recent years.

• The Virginia Court of Appeals issued its ruling on the Prince William Digital Gateway rezoning on April 1, 2026.
• Former state senator Chap Petersen, D-Fairfax, made comments about the data center industry's retreat in Virginia following the court ruling.

What they’re saying

What’s next

The Prince William County Board of Supervisors will need to revisit the rezoning process for the Digital Gateway project in light of the court's ruling.