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

New data center regulations, the first of their kind in Delaware, were signed into law by New Castle County Executive Marcus Henry following near-unanimous approval by the county council. These new rules, described by Henry as a "thoughtful compromise," mandate buffer zones, energy-efficient backup generators, and closed-loop water cooling systems for data centers. Councilman Dave Carter initially proposed the legislation last summer amid significant backlash against a developer's plan for a large data center near Delaware City, with residents and officials concerned about environmental harm and energy demands. However, a compromise provision means these new regulations will only apply to future projects, exempting the controversial Delaware City facility. Despite this exemption, the Delaware City project, dubbed "Project Washington," faces other hurdles. Delaware environmental regulators ruled last month that half of the project is not allowed under the state's Coastal Zone Act due to its proposed use of 516 diesel generators. Starwood Digital Ventures, the developer, has appealed this ruling, with a hearing scheduled for the upcoming Tuesday in Dover. The outcome of this appeal could take months or years to be finalized. The application of these new regulations remains uncertain for other potential projects, such as one near the St. Georges Bridge, which was initially proposed as a warehouse. Conversely, a proposed data center site near Newark appears to have an easier path, as its zoning already permits data centers and it is outside the Coastal Zone.