New Castle County Council Approves Data Center Regulations

The new rules won't apply to the massive Project Washington data center proposal.

Mar. 11, 2026 at 11:34am

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New Castle County Council has approved new regulations for data centers, including requirements for closed-loop water cooling systems and buffer zones between data centers and residential areas. However, the regulations will not apply to the proposed Project Washington data center complex, which continues to face objections at the state level.

Why it matters

The approval of these data center regulations comes as New Castle County grapples with the controversial Project Washington proposal, a massive 6 million square foot data center project that has raised concerns about its impact on the local community and the state's electrical grid. The new rules aim to address some of these concerns, but will not impact the Project Washington development.

The details

The new ordinance requires data centers to have a closed-loop water cooling system to limit water usage, and creates a 1,000-foot buffer between data centers and residential areas (with a 500-foot exception if noise regulations can be met). It also defaults to existing county limits on noise and lighting levels. An amendment clarified that the new regulations will only apply to applications submitted after the ordinance is adopted, unless an existing applicant requests to follow the new rules.

  • The New Castle County Council approved the data center regulations on Tuesday, March 11, 2026.
  • The hearing for Starwood Digital Ventures' appeal of the DNREC ruling on Project Washington is scheduled to begin on March 24, 2026.

The players

New Castle County Council

The governing body of New Castle County, Delaware that voted to approve new regulations for data centers.

Project Washington

A proposed 6 million square foot data center complex in New Castle County that continues to face objections at the state level.

Starwood Digital Ventures

The developer of the Project Washington data center proposal, who has filed an appeal of the DNREC ruling against the project.

Marcus Henry

The New Castle County Executive who will decide whether to sign or veto the new data center regulations.

Dave Carter

A New Castle County Council member who drafted the data center regulations and believes Project Washington is a 'bad deal' for the state.

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What they’re saying

“We just have to really be cognizant and thoughtful and make sure that we are ensuring that we protect our communities, and that we manage these things well if they are coming.”

— Dave Carter, New Castle County Council member

“If we don't have some stability, these people are not going to be able to go through a lender to get money, and so that means that they leave, and I'm sure that there's a group of people in this room that would love to see them leave, but that's not how we build economic development.”

— Janet Kilpatrick, New Castle County Council member

“We're really happy there's a consensus within the council and it's a really great opportunity for the residents of New Castle County.”

— Jim Lamb, Spokesperson for Starwood Digital Ventures

What’s next

The new data center regulations will now go to County Executive Marcus Henry's office for his decision on whether to sign or veto them. Additionally, Starwood Digital Ventures' appeal of the DNREC ruling on Project Washington is scheduled to begin a hearing in Dover on March 24, 2026.

The takeaway

The approval of these new data center regulations in New Castle County highlights the ongoing tensions between the potential economic benefits of data center development and the concerns of local communities about their environmental and infrastructure impacts. The exemption of the controversial Project Washington proposal from these rules underscores the complex political and regulatory landscape surrounding this major development.