New data center regulations go into effect, but not for Delaware City proposal

New Castle County, Delaware, under the leadership of County Executive Marcus Henry, has officially enacted new regulations governing data center developments. The legislation, which received near-unanimous approval from the county council, aims to mitigate the environmental and resource impacts of these facilities, particularly concerning energy consumption and water capacity. Key provisions of the new rules mandate buffer zones around data centers, require the use of energy-efficient backup generators, and stipulate closed-loop cooling systems to conserve water. The regulatory push, championed by Councilman Dave Carter, arose from significant public backlash against a proposed large-scale data center, "Project Washington," by Starwood Digital Ventures near Delaware City. Despite the new county-wide rules, this specific project is exempt as it was already in the development pipeline. Project Washington faces separate, substantial challenges, including a recent ruling by Delaware environmental regulators that half of its development plan violates the state’s Coastal Zone Act due to its proposed reliance on 516 diesel generators. Starwood Digital Ventures has since appealed this ruling, with a hearing scheduled to occur soon in Dover, a process that could extend for months or years. The applicability of these new county regulations to other proposed projects, such as one near the St. Georges Bridge initially planned as a warehouse but now possibly a data center, remains uncertain. However, a third proposed data center near Newark, which is outside the Coastal Zone and has appropriate zoning, appears to have an easier path forward under the new regulatory framework.