Delaware City data center environmental denial upheld by state board

The proposed Project Washington data center near Delaware City, spearheaded by developer Starwood Digital Ventures, suffered a significant setback after the Delaware Coastal Zone Industrial Control Board unanimously upheld a decision from Environmental Secretary Greg Patterson. The board determined that the data center's plans are not permissible under the state's Coastal Zone Act, a 1971 law designed to protect environmentally sensitive shorelines from heavy industry. Patterson's initial ruling highlighted the project's reliance on 516 backup diesel generators, which would collectively store 2.5 million gallons of diesel, as a primary reason for classifying it as heavy industry. This classification was fiercely contested by Starwood's attorneys from Richards, Layton & Finger, who argued that the Secretary mischaracterized Project Washington and ignored binding case law. They also disputed the worst-case scenario emissions calculations and the designation of the generators as a "tank farm." Environmental advocacy groups, particularly Sierra Club Delaware, expressed their satisfaction with the board's decision, seeing it as a victory for environmental protection. However, the legal battle is far from over, as legal experts and those involved anticipate Starwood Digital Ventures will appeal the decision to the Delaware Superior Court and potentially the Delaware Supreme Court, a process that could span several years. Concerns over data centers' impact on energy costs and the regional power grid, including potential increased use of backup generators due to power shortages, were also discussed during the 14 hours of testimony.