Starwood Digital Ventures makes its case to overturn Coastal Zone ruling against its data center plan

Starwood Digital Ventures has initiated an appeal to overturn a ruling by the Delaware Department of Natural Resources and Environmental Control (DNREC) that declared its proposed 580-acre data center in New Castle County to be a "heavy industrial use," prohibited under Delaware’s Coastal Zone Act. The appeal hearings are taking place before the Coastal Zone Industrial Control Board in Dover. During the initial day of hearings, Starwood's legal representatives, including Jeffrey Moyer, presented their case, emphasizing the data center's role in internet infrastructure and potential property tax revenues for the state. They called on former DNREC Secretary David Small as an expert witness, who argued that data center exhaust portals, described as elevated less than ten feet, do not constitute the "smokestacks" associated with heavy industrial processes like chemical processing or steel mills. Small had previously worked on the Starwood application. Starwood's team further contended that the plan to install over 500 diesel generators does not qualify as heavy industrial use because these generators are intended solely for emergency backup during power outages, projecting only 20 hours of annual operation. However, DNREC Secretary Max Walton's legal representation challenged this, noting that such generators would run continuously during extended outages. While Starwood consultant Brad Gray acknowledged this, he also cited the reliability of Delaware's power grid, a claim contradicted by testimony from PMJ and Reliability First, which project a decrease in grid reliability over the next five years. The appeal hearing is scheduled to continue, allowing for counterarguments and public comments before a board decision.