‘A modest start’: New Castle County passes zoning rules for regulating massive data centers

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New Castle County passed new data center regulations Tuesday night after several months of bitter battles and contentious debate.

The ordinance, which establishes data center zoning rules for the first time, is the third version of the proposal sponsor Councilman David Carter first introduced in August. While watered down, it maintains buffers, noise and light requirements. But it is not retroactive to cover at least two other projects already in the works for New Castle County.

Carter said he was willing to make concessions to get something done.

“I’m not willing to take a hard stand and throw the baby out with the bath water,” Carter said. “We have to get started. We have to make a difference. This was a modest start, but I think it’s still strong.”

The vote was 12 yes and one absent. The ordinance now goes to County Executive Marcus Henry, who has already expressed his support, for approval.

The creation of new regulations was sparked by Starwood Digital Ventures’ application for a billion-dollar, 6-million-square-foot data center in Delaware City. Supporters of the massive data centers, which include powerful labor unions, say they will bring good union jobs, while detractors are concerned they will consume excessive water and electricity.

Despite removing the retroactivity language from the ordinance, Councilwoman Janet Kilpatrick introduced a floor amendment she said was needed to ensure that data centers already in the pipeline would not be adversely affected by the new regulations. She said without this language, the county would be liable to legal challenges.

But opponents of her amendment argued it effectively gutted Carter’s ordinance, weakening even current zoning laws.

“We are trying to get something over the finish line. And what this does is seek to undo all that hard work at that time,” said Councilman Kevin Caneco. “Let’s put all our cards on the table. We’re probably getting sued either way.”

After some debate, Kilpatrick withdrew her amendment and the council unanimously passed different language to address some of the council members’ concerns on the issue.

Carter said the amendment they ultimately adopted doesn’t change anything about his legislation.

“All it does is reiterate the same thing,” he said. “If that makes them feel better, I’m happy to do that.”

Tuesday’s council meeting was standing room only, brimming with residents who supported and opposed the ordinance, including trade unionists and environmentalists. Members of the public spoke passionately about their views, drawing jeering and clapping from people in the room.

Billy Papili, a retired union pipefitter, drew a round of applause after giving his public comments. He urged the council to reach a compromise so the massive data center projects can create Delaware jobs.

“There’s nothing here and we just want to work,” he said. “And it’s just sad. We live here, but we’re dying. I tell my grandkids, get a college degree and get the hell out of nowhere. There are no good jobs here.”

Jim Lamb, a spokesperson with Starwood Digital Ventures, said in an emailed statement that the company was encouraged by supporters who attended the meeting.

“They are demanding the approval of Project Washington because it is a state-of-the-art campus, with the highest commitment to the environment and residential communities,” he said.

The revised ordinance sets zoning standards for hyperscale data centers

Carter’s substitute bill limits the power-hungry data centers to industry and heavy industry zones. It requires a 1,000-foot setback from the nearest residential district, unless the developer can prove it will not exceed noise limits. Open-loop cooling, which consumes a lot of water, is banned unless reclaimed water is used. The ordinance calls for companies to use energy-efficient generators, and mandates that the property owners must restore the site to its previous condition if they decide to cease operations.

Pipeline of projects and status

Starwood Digital Ventures’ Project Washington hit a roadblock last month after the Delaware Department of Natural Resources and Environmental Control rejected its request to build in Delaware’s Coastal Zone because it planned to use diesel generators for backup power. Starwood has appealed the decision, disputing that the center would be a big polluter.

There could also be Coastal Zone implications for the project that would be constructed off of St. George’s Bridge in Middletown.

There’s also an application for a data center near Newark that would not be subject to the Coastal Zone Act or the new regulations passed by the county council.