Project Washington data center denied key environmental permit

The Delaware Natural Resources and Environmental Control (DNREC) has denied Starwood Digital Ventures' plans for a 1.2 gigawatts data center, citing concerns over the project's impact on the state's Coastal Zone. Starwood Digital Ventures may appeal the decision or resubmit the project with a new application. The company remains committed to the project, stating it will work with regulators to ensure the data center is state-of-the-art and brings thousands of jobs to Delaware. The Coastal Zone Act, passed in 1971, prohibits and regulates the construction of new heavy industry in the state's coastal areas. DNREC Secretary Greg Patterson cited concerns over the project's 516 backup diesel generators and their potential for significant air pollution as reasons for denying the permit. Data center regulation is a contentious issue in Delaware, with ongoing debates at the county and state levels. Some officials, like New Castle County Councilman David Carter, have applauded DNREC's decision, while others, such as Senator Stephanie Hansen, view it as an opportunity to have a "dispassionate conversation" about the future of data centers in the state.