New Castle County Council Approves New Data Center Rules, But Won’t Apply Them to Existing Projects

County officials said the updated data center rules are meant to reflect the current technology and new infrastructure needs while balancing economic development with community protections.

WILMINGTON, Del. — After nearly four hours of debate and public comment, the New Castle County Council voted Tuesday night to adopt new rules governing large data center developments — but declined to apply those standards to projects already in the pipeline, including the controversial Project Washington proposal in Delaware City.

Council unanimously approved Ordinance 25-101 in a 12–0 vote. Councilman Jea Street was absent.

The ordinance updates county zoning guidelines for data centers, addressing issues such as facility size, location, buffer zones and infrastructure impacts. The goal is to formally recognize data centers as a distinct type of development rather than treating them as traditional light industrial uses under county zoning rules.

Until now, the county had not made a distinction between data centers and other light industrial facilities. County leaders said that approach no longer reflects the realities of modern technology infrastructure.

Data centers have evolved significantly in recent years, becoming far larger facilities that consume substantial amounts of electricity and place new demands on infrastructure and surrounding communities. County officials said the updated rules are meant to reflect those changes while balancing economic development with community protections.

The vote followed a contentious discussion over whether the new regulations should apply retroactively to projects already announced.

Councilman John Cartier introduced an amendment that would have applied the rules retroactively to Aug. 5, 2025, but withdrew the proposal without a vote. Councilwoman Janet Kilpatrick offered a similar amendment that would have made the rules effective the day the county executive signs the ordinance, but also withdrew it before a vote.

Ultimately, the council approved a third amendment sponsored by Councilman Tim Sheldon stating that the ordinance will take effect when it is signed by County Executive Marcus Henry, while allowing developers with pending applications to voluntarily comply with the new guidelines.

The amendment passed 12–0.

With that question settled, council members unanimously approved the full ordinance.

The decision means several proposed data center projects currently in development — estimated at six to eight projects across the county — will not be required to comply with the new rules.

However, the largest of those projects, Project Washington, has already indicated it intends to comply with the new standards voluntarily, even though it would not be required to do so under the ordinance.

The meeting drew a large crowd and highlighted the growing debate surrounding the rapid expansion of data centers.

Roughly 60 residents and community advocates attended to support stronger regulations, citing concerns about noise, light pollution, environmental risks, water use and the significant energy demands of the facilities. A similar number of representatives from local trade unions attended to oppose restrictions they believe could slow job-creating construction projects.

Public comment and council debate stretched the meeting past 10 p.m.

Environmental groups also encouraged residents to attend. The Sierra Club of Delaware urged its members and supporters to participate in the meeting as part of its effort to raise awareness of the impacts that large data center developments have had on communities across the country.

The organization has said it does not oppose all data centers, but wants communities and local governments to understand the environmental and infrastructure challenges they can bring — including energy demand, noise, and water usage — and to adopt safeguards before projects receive final approvals.

“Our goal is not to stop every data center,” said Dystyn Thompson, chapter director of the Sierra Club of Delaware. “We want communities and policymakers to learn from what has happened in other places and put smart protections in place now so Delaware can manage this growth responsibly.”

Supporters of the ordinance argued that updated guardrails are necessary as data centers grow larger and more complex. Critics of the restrictions warned that overly strict rules could discourage investment and cost Delaware construction jobs.

Data centers serve as the physical infrastructure that supports digital services, ranging from cybersecurity and healthcare systems to artificial intelligence and cloud computing.

The debate also comes as several data center proposals are advancing in Delaware, including Starwood’s Project Washington in Delaware City.

That project recently faced a major setback when the Delaware Department of Natural Resources and Environmental Control denied its Coastal Zone permit, citing concerns about storing large quantities of diesel fuel and potential risks to the Delaware River and Bay.

State Sen. Stephanie Hansen, who has followed the issue closely, said DNREC’s decision should not be interpreted as opposition to all data center development in Delaware.   “Make no mistake, this decision should not be viewed as a referendum on the future of data centers in Delaware,” Hansen said when the denial was announced.

According to a 2025 report from the Delaware River Basin Commission, at least nine data centers already operate within the commission’s regional jurisdiction, which includes most of New Castle and Kent counties.

The ordinance now heads to County Executive Marcus Henry for his signature.