Lessons for Delaware’s future found in Virginia’s Data Center Alley

Delaware is currently facing a wave of new data center proposals, particularly in New Castle County and near Delaware City, and is drawing lessons from Northern Virginia's extensive data center development. The article, published by Spotlight Delaware, explores the economic benefits and environmental/quality-of-life consequences experienced in regions like Loudoun County, Virginia, which hosts over 200 data centers. Buddy Rizer, Loudoun County's economic development coordinator, known as the 'Godfather of Data Centers,' highlighted the substantial tax revenue generated by data centers, enabling the county to lower property tax rates and fund new amenities such as parks, schools, and community centers. He also acknowledged that data center companies sometimes reimburse him for speaking about their benefits. However, environmental and community advocates, including Ann Bennett of the Virginia chapter of the Sierra Club and Julie Bolthouse from the Piedmont Environmental Council, raised concerns about the industrial nature of data centers, their proximity to homes, and environmental impacts. These include heat radiation, emissions from backup diesel generators, water usage for cooling, and persistent noise pollution that can significantly affect residents. Residents in Virginia have expressed worries about rising energy bills and the aesthetic impact of these large, windowless structures. The regional electricity grid, managed by PJM Interconnection, has seen energy prices increase due to surging demand, largely attributed to data centers. A 2024 Virginia report suggested that while data centers hadn't increased residential power bills directly due to previous unused capacity, future increases are projected as capacity runs out. Projects like Starwood Digital Ventures' proposed 1.2 GW data center near Delaware City are at the center of this debate in Delaware. Currently, none of the proposed data centers in northern Delaware have secured all necessary approvals, keeping their zoning status pending. Rizer advised Delawareans to weigh both the economic upsides, such as direct tax revenue and supporting businesses, against the environmental and social downsides before making decisions about data center development.