Proposed Delaware City data center could use up to 20 million gallons of water annually

The 1.2-gigawatt facility would triple the water usage of Wilmington residents and businesses.

Published on Feb. 10, 2026

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A proposed 1.2-gigawatt data center in New Castle County, Delaware would require between 10 to 20 million gallons of water per year to cool its servers and facilities - more than triple the annual water usage of the entire city of Wilmington. Environmental regulators have raised concerns that the project, known as "Project Washington", does not meet Coastal Zone Act regulations due to its heavy water and diesel fuel usage.

Why it matters

The proposed data center highlights the growing concerns around the water and energy demands of large-scale data centers, which are being built across the region. Residents are increasingly voicing worries about the impact of these facilities on local electricity bills and water supplies, which in some areas have threatened drinking water. Opposition to data centers is growing as their heavy energy use strains the power grid and drives up prices.

The details

The "Project Washington" data center proposed by Starwood Digital Ventures would use 516 diesel-powered generators and a 5-acre tank farm that would store 2.5 million gallons of fuel. The vast amount of water required to cool the facility would be more than 9.9 million gallons per year - or up to almost 20 million gallons. In comparison, the entire city of Wilmington uses about 3.3 million gallons of water annually. Data centers require large amounts of water to cool the specialized computer processors in their servers, with the water often evaporated in the cooling process rather than being conserved.

  • The proposed data center was filed with the Department of Natural Resources and Environmental Control in early 2026.

The players

Starwood Digital Ventures

The company proposing the 1.2-gigawatt "Project Washington" data center in New Castle County, Delaware.

Department of Natural Resources and Environmental Control

The state agency that received the application for the Coastal Zone Act status decision for the proposed data center.

Wilmington

The city in Delaware whose annual water usage of 3.3 million gallons would be tripled by the proposed data center.

Al Ortega

A professor of energy technology at Villanova University who commented on the growing power and water demands of large-scale data centers.

Benjamin Lee

A professor of electrical engineering and computer science at the University of Pennsylvania who discussed the water cooling needs of data centers.

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What they’re saying

“There's a fear that these data centers are so large that they're going to essentially upset the water economy and the power economy that we know now.”

— Al Ortega, Professor of energy technology (WHYY)

“The question is, 'To what extent are you drawing from local water supplies to cool your data center and to what extent is that watershed replenished?' I think that it should be an important criteria for figuring out where a company should build its data centers.”

— Benjamin Lee, Professor of electrical engineering and computer science (WHYY)

What’s next

The Delaware River Basin Commission, which regulates water use in the region, has not received any applications for water withdrawals related to data centers yet, but is closely monitoring the potential impacts as more large-scale facilities are proposed.

The takeaway

The proposed Delaware City data center highlights the growing tensions between the water and energy demands of the tech industry and the needs of local communities. As more hyperscale data centers are built across the region, there are increasing concerns about their strain on power grids, water supplies, and utility costs for residents.