However, since its public launch in 2022, development has been delayed due to community and environmental concerns. Issues have included failures to protect surface waters from drilling “mud” used in constructing fiber-optic cable tunnels, resulting in work stoppages imposed by Maryland’s Department of Environment.
Restrictions on TPG and Quantum Loophole’s Roles
The proposed court order limits certain actions by TPG without Quantum Loophole’s consent, provided that consent is not “unreasonably” withheld. Specifically, TPG is prohibited from entering material agreements exceeding $100,000 unless they align with the project’s annual budget. Similar restrictions apply to the development of the 43 miles of fiber-optic transmission capabilities, ensuring that the fiber project stays within an overall $165 million cap.
Under the new proposal, Quantum Loophole’s development role would be eliminated, with a TPG affiliate, Catellus Development Corporation, stepping in for land and development activities. Quantum Loophole is required to reasonably cooperate in transferring control and authority over bank accounts and other operational aspects to TPG affiliates, including LandCo and FiberCo.
TPG Md Data Lawsuit : Project’s Strategic Importance
The Maryland data center project is designed to link the Frederick County site to Ashburn, Virginia—often referred to as the data center capital of the world, home to over 100 data centers and a dense fiber network. The area is responsible for around 70% of global internet traffic, making the planned fiber link crucial for hyperscale, telecom, and enterprise clients.
Legal Representation
TPG RE III Volt Holdings LP is represented by Michael A. Barlow, William A. Burck, and Keith H. Forst of Quinn Emanuel Urquhart & Sullivan LLP. Counsel information for Quantum Loophole Inc. and its affiliates was not immediately available.
