Dover data center moratorium gains steam, amid statewide concerns over the industry

Dover, Delaware officials are considering an 18-month moratorium on data center approvals, a move that gained significant traction after a City Council committee unanimously voted to advance the ordinance to the full council. The proposal, spearheaded by Councilwoman Donyale Hall, aims to provide the city with time to conduct a comprehensive review of data centers' potential impacts, especially on the city's electrical infrastructure and other utilities.

The city's electric director, Paul Waddell, and Hall both emphasized the need for a thorough study before establishing permanent policies, citing concerns about electricity demand and a potential influx of data center proposals following strict regulations recently passed in neighboring Kent County. Councilwoman Hall clarified that the measure is not intended to close Dover's doors to data centers but to ensure informed decision-making. If approved, Dover would be the first jurisdiction in Delaware to implement a temporary ban on data center projects.

The consideration of Dover's moratorium aligns with broader statewide conversations, including new regulations adopted by New Castle and Kent counties limiting where data centers can be built, and bills passed by the Delaware General Assembly requiring developers to supply their own power for the first ten years. While some, like Kent Economic Partnership executive director Linda Parkowski, urged efficient policy development to avoid signaling that Dover is not open for business, residents like Bill Faust supported the pause to prevent strain on public utility systems.