Delaware City data center faces major setback after environmental denial

Delaware City data center faces major setback after environmental denial

News ClipSpotlight Delaware·Delaware City, 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.

environmentalelectricitywater
Gov: Delaware Department of Natural Resources and Environmental Control, New Castle County Council
Why Should Delaware Care?The plan for a massive data center near Delaware City has garnered backlash from residents who are worried about its potential impact on energy costs and the environment. Today’s ruling could stop the project from moving forward entirely.  Delaware’s environmental agen