Construction on the massive PW Digital Gateway project—envisioned as the world’s largest data center corridor—has been placed on hold by the Virginia Court of Appeals. The decision is a win for local residents challenging how the project was approved and a setback for developers hoping to begin building while the case worked its way through the courts.
The Nov. 17 order reverses a prior allowance for work to proceed, ruling that no land disturbance or construction can begin until the legal challenge is resolved. The court partially granted a motion for reconsideration, effectively reinstating a blockade on development activity despite earlier judicial clearance to move forward.
The appeal stems from a lawsuit led by the Oak Valley Homeowners Association, along with other residents who argue that Prince William County failed to legally advertise the rezoning hearing that approved the 2,100-acre project. In August, Prince William Circuit Court Judge Kimberly A. Irving declared the rezoning “void ab initio,” meaning invalid from the start. Developers Compass Datacenters and QTS, along with the Prince William Board of Supervisors, appealed Irving’s ruling.
According to the Nov. 17 order, “The trial court’s judgment is not stayed to the extent it prohibits appellants from engaging in land-disturbance or actual construction…” The ruling makes clear that the project may continue through legal proceedings and design planning, but not physical development on site. Enforcement of the decision remains in effect unless the court rules otherwise.
The appeal has now been fast-tracked, with oral arguments scheduled for the week of Feb. 23, 2026, showing how consequential the case is for Virginia’s rapidly expanding data center industry.
When reached for comment, Compass Datacenters attorney Mark Looney declined to offer remarks, noting the project remains in its design phase. However, local residents celebrated the temporary halt.
In a statement emailed to InsideNoVa, Mac Haddow, president of the Oak Valley Homeowners Association, wrote:
“The Oak Valley community, and the residents directly impacted by the proposed PW Digital Gateway, welcome the decision by the Virginia Court of Appeals to officially block the data center developers from engaging in any land disturbance or actual construction of the facilities pending the final judicial decision.”
Haddow added that the order “brings absolute clarity” to whether developers could use construction as leverage to sway political or judicial outcomes. He continued, “The current posturing… have essentially given the defendants ‘two bites at the apple’ and the attempt to confuse the Appeals Court on the land disturbance and actual construction issue is a perfect example of that.”
If fully built, the Digital Gateway near Gainesville would feature 37 data centers, totaling 22 million square feet, or roughly the size of 144 Walmart supercenters. It represents one of the most controversial development plans in Virginia history, intersecting debates over energy demand, environmental impact, land use, and local tax revenue.
Northern Virginia is already the world’s largest data center market, exceeding 4,900 megawatts of capacity. A larger buildout could reshape the region’s power grid, prompting conversations from state regulators about whether data centers may trigger higher electricity costs.
The current Board of Supervisors inherited the controversy from its predecessors, who approved the project in December 2023. Judge Irving’s ruling halted that decision, and the latest court action keeps the brakes on until the final verdict.
Originally reported by Sébastien Kraft, InsideNoVa.com in WTOP News.
