
Starwood Digital Ventures appeal to be heard
News ClipDelaware Business Times·Delaware City, New Castle County, DE·3/23/2026
An appeal regarding Starwood Digital Ventures' proposed 1.2-gigawatt data center in Delaware City will be heard by a state board. The project was previously denied approval under the Coastal Zone Act, prompting the appeal. This comes as New Castle County recently approved new regulations for data centers.
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Gov: Delaware Natural Resources and Environmental Control, Coastal Zone Industrial Control Board, New Castle County Council, New Castle County
The Coastal Zone Industrial Control Board is set to hear an appeal concerning Starwood Digital Ventures' proposed 1.2-gigawatt data center in Delaware City. This hearing follows a decision in February by Delaware Natural Resources and Environmental Control (DNREC) Secretary Greg Patterson, who determined that the project did not meet the Coastal Zone Act's criteria for allowable manufacturing or other permitted uses. The Coastal Zone Act of 1971 regulates heavy industry construction in coastal areas, requiring companies to secure specific permits.
Starwood Digital Ventures, which plans to construct at least 11 buildings across a 580-acre parcel and utilize 516 double-diesel fuel tanks for backup generators, filed the appeal shortly after the DNREC's decision. This marks the first such appeal to be heard by the nine-member board in five years. If successful, the project, internally dubbed "Project Washington," would be exempt from new data center regulations recently passed by the New Castle County Council.
The new county ordinance, signed by New Castle County Executive Marcus Henry on March 18, applies to forthcoming data centers, restricting them to industrial and heavy industrial zoning districts. It mandates 1,000-foot setbacks from residences, schools, and daycares, though a 500-foot setback is permissible with a site-specific noise study. Additionally, future data centers must implement closed-loop cooling systems and provide a decommissioning plan with allocated funds for site cleanup.