The state of data center debate in Delaware

The state of Delaware is debating whether to allow large data centers to set up operations and how to regulate them if they are permitted. Recent public hearings have seen defenders of data centers argue that the facilities are an inevitable and necessary result of the adoption of artificial intelligence, and that to resist them would be economic folly that would simply drive developers toward other states seen as more friendly. However, critics have argued that electric ratepayers should not have to pay increases to their bills to support the huge new demand on the electric grid, at a time when overall electric use is expected to exceed supply in the next few years. They have also raised concerns about threats to environmental quality, such as air pollution and noise, that have been experienced by residents in areas like northern Virginia where data center development is already advanced. Legislation has been proposed in the Delaware General Assembly to give the state's Public Service Commission more authority to approve or deny operating certificates for large-load users like data centers, based in part on their expected impact on retail ratepayers. Another bill would require the PSC to set a special tariff for large-load users. Critics of a major proposed data center project called 'Project Washington' have cheered the state's blocking of the plan on the grounds that it would violate the state's Coastal Zone Act. However, five other data centers are planned that would use a total of about 1 gigawatt of electricity, roughly half of what is currently used by all of Delaware.