Why Should Delaware Care?
The popularity of artificial intelligence has sparked a boom in demand for facilities, called data center, that house the computer servers that power the internet. But those facilities have also drawn criticism from local communities for their water and electricity usage.

Developers behind two proposed industrial projects in New Castle County have indicated in recent planning documents that their developments may become data centers.

While documents don’t state definitively that the developments will become data centers, the engineering firm for both projects asserted in letters to the county that data centers do not require the same number of parking spaces as other types of industrial developments.  

The developments also planned for sites near Newark and near the southern approach to the St. Georges Bridge.

The engineering firm, Verdantas, also said in one letter that zoning for the St. Georges property allows “distribution centers, fulfillment centers, truck terminals, warehouses, and data centers.”

Neither Verdantas nor the developers responded to requests to comment.

Separately, officials from New Castle County’s planning department said they “have not received any clarification on the proposed use.” 

Despite the planners’ uncertainty, New Castle County Council members Janet Kilpatrick and Dave Carter each told Spotlight Delaware that the plans are likely data centers.

Councilmembers react

The new plans arrive just as Carter has been pushing the New Castle County Council to adopt a sweeping set of regulations for the data center industry. If passed, his proposal would require data centers to install buffer zones to keep them away from residential areas, and to use energy-efficient backup generators, among other rules.

Councilwoman Janet Kilpatrick, who proposed amendments to water down a regulatory bill for data centers, talks to Councilman Tim Sheldon, one of the data center’s chief supporters, at the council’s Nov. 18 meeting. | SPOTLIGHT DELAWARE PHOTO BY OLIVIA MARBLE

Kilpatrick has been among the fiercest critics of the proposal. And last week she said she is glad new data center plans are likely coming, noting that the county has lost several industrial operations in recent decades.

“We need to get our tax base up, and we need to get people jobs,” she said. 

In contrast, Carter said he wants to move faster with an approval for his proposed regulations so they can be implemented in time to apply to the new plans near Newark and near the St. Georges bridge.

“We’re losing ground, but it could get a whole lot worse if we don’t get some reasonable controls in place,” Carter said.

County Councilman Dave Carter has become a leading voice in seeking to limit data centers in New Castle County. | SPOTLIGHT DELAWARE PHOTO BY OLIVIA MARBLE

Carter first proposed the rules four months ago amid a backlash to plans to build another data center on about 580 acres north of the Delaware City Refinery. The opposition largely focused on the high demand for energy the data center would have in a region that already faces an electricity supply crunch.

While the public largely opposed the plans early on, the developer of that power hungry data center, Starwood Digital Ventures, won a key ally this fall in the Delaware building trades union.

In public meetings and on social media, union members have called for supporting the Starwood data center and opposing Carter’s proposed regulations.

Earlier this month, Carter delayed discussions for his proposal to regulate the industry due to a lack of support from the council. 

The two new plans

Last year, Verdantas submitted plans on behalf of property owner Parkway Gravel Inc. to build three distribution centers totaling 2.5 million square feet on farmland along Route 1 just below the C&D Canal, along with 150 homes. 

In November, Verdantas submitted new documents that removed the term logistics center from the name of the development and that stated that the parking demand for data centers is “far less” than for other industrial uses.

The revised plans also increased the size of the development to 3.2 million square feet

Currently, data centers and warehouses are both permitted by right in the light industrial districts in the county, so there are few barriers to developers switching the use of their buildings from warehousing to data centers. 

The demand for warehouse space has slowed in recent years while the data center industry has rapidly grown, fueled largely by investors chasing the expected riches of the artificial intelligence industry.  

Then, earlier this month, Verdantas submitted plans for a different client to build a 676,000 square foot industrial park at White Clay Center Drive, east of Newark. It appears the developer would need to demolish existing industrial buildings for the project. 

Like the St. Georges Business Park plan, Verdantas submitted a letter to the county reiterating that the parking demand for data centers is less than for other industrial uses.

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