Data center plan near Delaware City cut in half. Does it comply with Coastal Zone Act?

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The developer of the proposed data center near Delaware City has cut the original plan in half, according to New Castle County Land Use Department records.

But two hurdles in the approval process are out of the county’s control.

Initially, the developer proposed a 6-million-square-foot data center spread over 11 buildings on two properties east of Route 1, one north of Red Lion Creek and the other south of the creek.

See the original data center plan: Massive 11-building data center proposed near Delaware City, bringing hundreds of jobs

But the exploratory plan filed with the county lists a data center and electrical yard on the “south campus,” with only an electric yard on the property north of the creek.

The exploratory plan for the proposed data center near Delaware City includes six data center buildings and two electrical yards on the property south of Red Lion Creek near Governor Lea Road, but no data center buildings on the property north of Red Lion Creek, only electrical yards.
The exploratory plan for the proposed data center near Delaware City includes six data center buildings and two electrical yards on the property south of Red Lion Creek near Governor Lea Road, but no data center buildings on the property north of Red Lion Creek, only electrical yards.

The zoning of the south campus would allow for a data center, but the zoning for the north campus would not, according to a preliminary assessment by the county land use department.

“That’s currently what we believe, but we’re going to take a closer look at it,” said Kevin Caneco, county councilman for the 12th District which includes the sites.

The plan on the south campus is for six buildings with a total of 3 million square feet, about half of the developer’s initial proposal in a letter to the county and in discussions at the public meeting at the Delaware City Fire Hall July 24.

The audience fills the Delaware City Fire Hall during the meeting on July 24, 2025 about the proposal for a 6-million-square-foot data center northwest of Delaware City.
The audience fills the Delaware City Fire Hall during the meeting on July 24, 2025 about the proposal for a 6-million-square-foot data center northwest of Delaware City.

The plan also shows two areas labeled “electrical yard.”

On the north campus, no data center buildings are listed, only three areas labeled “electrical yard.”

“I still have my concerns. It’s still a very big data center,” Caneco said. “As I’ve said, as the district councilman I reserve judgment so I can get all information before making a decision.”

Caneco said if the proposal fits the zoning and meets all county building code requirements, then the developer could file a lawsuit if county council denies the proposal.

But before any county decision, Caneco said two state reviews will happen.

The plan has to go to the Department of Natural Resources and Environmental Control, also known as DNREC, for a ruling on if it’s allowed under the Coastal Zone Act. The proposal will also be reviewed by the Delaware Preliminary Land Use Service.

What is the Delaware Coastal Zone Act?

Both properties where the data center has been proposed near Delaware City are east of Route 1 and within the Coastal Zone, which runs along the Delaware River, the C&D Canal, the Delaware Bay, the Inland Bays and the Atlantic Ocean.

The Coastal Zone Act, passed by the Delaware General Assembly in 1971, prohibits future heavy industrial development and created a permitting program for manufacturing activities within Delaware’s coastal zone, according to the DNREC website.

The Delaware Coastal Zone is shown in light green along the state's coast and the Chesapeake and Delaware Canal.
The Delaware Coastal Zone is shown in light green along the state's coast and the Chesapeake and Delaware Canal.

DNREC determines whether a proposed use would be prohibited, if it would not require a coastal zone permit because it is not manufacturing or heavy industry, or if it would require a permit and which type.

“If it is unclear whether a proposed activity would be prohibited or unregulated, or which type of permit is necessary, the applicant can submit a request for a status decision to provide more details to DNREC to make that determination,” the DNREC website reads.

The data center proposal “is in the early coordination phase of a status decision, which precedes a permit application submittal, if required,” said Michael Globetti, DNREC media relations manager. “A status decision determines whether the proposed activity is subject to the Coastal Zone Act.”

The DNREC secretary makes the final decision, Globetti said.

In a Coastal Zone Act review, DNREC evaluates environmental impacts, economic effects, aesthetic effects, the number and type of supporting facilities and impacts of those facilities, neighboring land uses including effects on adjacent residential areas and consistency with county and municipal comprehensive planning.

For permitting decisions, DNREC also evaluates an offset proposal to compensate for potential negative environmental impacts as a result of the activity.

All Coastal Zone Act decisions have a public comment period, and all new permit decisions also have a mandatory public hearing.

Public hearings are listed on the DNREC webpage, “Coastal Zone Act application materials” under “recent public notices.”

Appeals of a permit or other decision of the DNREC Secretary are handled by the Coastal Zone Industrial Control Board, which is an independent entity from DNREC.

What is the state’s Preliminary Land Use Service review?

The Preliminary Land Use Service (PLUS) “brings together all applicable state agencies to provide early, advisory input on land development projects in Delaware,” according to the PLUS website.

The next PLUS meeting is scheduled for 8:30 a.m. Wednesday, Sept. 3, starting with a pre-meeting discussion by PLUS reviewers.

The agenda doesn’t specifically list the proposal from Starwood Digital Ventures; however, at 9:30 a.m., the agenda lists a review and discussion on New Castle County data centers and a review of a proposed county ordinance that would create standards for data centers.

This meeting will be conducted online and in person at the Haslet Armory, 122 Martin Luther King Jr. Blvd. South, Dover, in room 133. For a link to online access, see https://publicmeetings.delaware.gov/

Public comments will be allowed at the end of each application after the state agencies have shared comments. Each person wishing to comment on the application under review will have up to three minutes.

More comments about data center: Many unanswered questions at meeting about proposed data center near Delaware City

What’s in the data center developer’s exploratory plan?

In the exploratory plan filed with the county, the owner is New Castle Campus Development LLC of Parsippany, New Jersey, and the developer is SDV Delaware LLC of Greenwich, Connecticut. “SDV” stands for “Starwood Digital Ventures.”

Two properties are listed, one with an address of 825 Governor Lea Road, New Castle, and the other with an address of 0 River Road (Route 9) – that’s right, Zero River Road.

For the Governor Lea Road property, the zoning is heavy industrial and commercial regional.

The site area is 242.30 acres with 1.42 acres for right of way.

The plan is for six buildings, each with an area of 250,000-square-foot with two stories, for a total floor area of 500,000 square feet per building and a height of 65 feet. The total floor area of the six buildings is 3 million square feet.

The six buildings will cover 34.43 acres.

The exploratory plan also shows two areas labeled “electrical yard.”

Impervious surfaces like parking lots are proposed on 42.00 acres.

Open space in the plan is 161.44 acres.

Stormwater management is proposed on 3.00 acres.

Parking is required for a minimum of 25 spaces per building based on square footage. The developer plans 50 spaces per building and another five spaces each for two guardhouses for a total of 310 parking spaces for vehicles and 20 bicycle spaces.

The projected average sewer flow is 2,500 gallons per day per building, so for six buildings, that’s 15,000 gallons per day during average. The peak sewer flow is listed at 60,000 gallons per day.

New Castle County sewerage must be approved by the New Castle County Department of Public Works. The exploratory plan states: “sewer capacity existed to accommodate the anticipated flows generated by this additional development.”

As for water, that is proposed to be supplied by Veolia Delaware, with approval from DNREC and the Delaware Department of Public Health.

The property includes tidal wetlands of 41.25 acres, wetlands of 6.75 acres, a flood plain of 57.23 acres and a riparian buffer of 19.40 acres. These wetland, flood plain and riparian buffer areas are listed as “not permitted to be disturbed” except in part of the riparian buffer for grading associated with stormwater conveyance and buffer restoration. The landscape plan lists the restoration and reforestation plan after grading.

Electric substation proposed on River Road (Route 9)

For the property at 0 River Road (Route 9), New Castle, the area is 339.01 acres with 1.22 acres for a right of way.

Most of land will be designated as open space, 304.44 acres, along with impervious surfaces of 32.35 acres and a stormwater management area of 1.00 acres.

It’s zoned suburban.

What’s proposed is a 30-acre electric substation enclosed by a fence, as the county requires.

The county code says utility installations can't be closer than 50 feet from a property line and 150 feet from a dwelling unit. The developer proposes 110 feet from a property line and 2,150 feet from a dwelling unit.

The property has tidal wetlands of 49.56 acres, wetlands of 6.75 acres, a flood plain of 57.66 acres and a riparian buffer of 19.37 acres.

Reporter Ben Mace covers real estate, development and business news. Reach him at [email protected].

This article originally appeared on Delaware News Journal: Data center plan near Delaware City cut in half. Does it fit Coastal Zone?

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