Delaware City data center faces major setback after environmental denial
News ClipSpotlight Delaware·New Castle County, DE·2/4/2026
A proposed data center near Delaware City, Delaware has faced a major setback after the state's environmental agency ruled that the project is not allowed under the state's Coastal Zone Act, primarily due to concerns over the large number of diesel generators and fuel storage required. The developer, Starwood Digital Ventures, has until February 18 to appeal the decision. Local officials have expressed support for the agency's decision, citing the potential environmental impacts of the project.
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Gov: Delaware Department of Natural Resources and Environmental Control, New Castle County Council
The Delaware Department of Natural Resources and Environmental Control (DNREC) has denied a plan for a massive data center near Delaware City, citing concerns over the project's diesel generators and fuel storage. The decision could stop the project from moving forward, unless the developer Starwood Digital Ventures wins an appeal. State Senator Stephanie Hansen and environmental advocates supported DNREC's decision, while labor union leader James Maravelias called for finding a workable solution that can provide new jobs while implementing guardrails on the data center industry. Starwood expressed confidence the project will still be completed.