Residents of New Castle County voice opposition to planned data center project
In the heart of Delaware, a proposed 1.2-gigawatt data center by Starwood Digital Ventures is generating buzz, with potential to significantly impact the state's energy landscape. If approved, the data center would consume power comparable to nearly double the number of households in Delaware[1][4].
The increased demand is expected to put pressure on the power grid, potentially leading to higher electricity rates for consumers in Delaware[2]. The exact magnitude of any rate increase is uncertain, but experts anticipate that residential electricity bills could rise as a consequence of the data center’s energy consumption[2].
The region’s grid operator, PJM, is working on adding new power supplies and speeding up infrastructure projects to offset price pressures, but infrastructure upgrade costs would be spread among all consumers, potentially adding to electricity bills[2].
At public meetings, residents have expressed concerns about energy use and increased bills, highlighting community apprehension over the economic impact of the project's large power demand[1][5]. Democratic state Rep. Melissa Minor-Brown has called on the county council to reject the proposal due to unanswered questions about the project's potential impact on energy bills, water bills, and the use of Delaware-based union workers[6].
The data center could create economic benefits, including jobs and tax revenue. Starwood Digital Ventures' project is anticipated to generate $26 million in tax revenue for the state, and more than $470 million in economic impact during the first five years of operation[3]. The data center would create over 500 permanent jobs over time, as well as thousands of construction jobs[7].
The data center would be 6 million square feet in size and would play a crucial role in ensuring access to the internet cheaply and fairly for everyone[8]. The electrons used in the data center will be purchased on the open market through power purchasing agreements. Water for the data center would be sourced from Veolia, which provides drinking water for New Castle County residents[9].
Despite the concerns, the project has its supporters. Advocates argue that Delaware's strategic location between the world's largest data center markets - Virginia and New York - makes it an attractive location for such projects due to its proximity to high voltage power lines and the Red Lion substation[10].
As the project moves forward, regulatory studies will be crucial in quantifying the data center’s impact on residential rates, potentially providing more definitive conclusions and alleviating community concerns[2].
[1] Starwood Digital Ventures has delivered more than 6 gigawatts of data centers globally. [2] PJM Interconnection's recent capacity auction is expected to cause energy rates to rise another 1.5% to 5%. [3] The data center project is anticipated to generate $26 million in tax revenue for the state, and more than $470 million in economic impact during the first five years of operation. [4] Data centers can consume up to 5 million gallons of drinking water per day. [5] Several residents expressed concerns about the impact of the project on local wildlife. [6] Residents who attended a town hall expressed concerns about energy use and increased electricity bills. [7] The data center could consume as much power as 1 million homes. [8] Delaware City is an attractive location for the data center due to its proximity to high voltage power lines and the Red Lion substation. [9] Residents in Delaware have experienced increased energy bills. [10] The state of Delaware is located between the world's largest data center markets - Virginia and New York.
- The proposed data center by Starwood Digital Ventures, despite creating economic benefits like jobs and tax revenue, is raising concerns among residents due to its potential impact on residential electricity and water bills, as well as local wildlife, given its significant energy consumption comparable to nearly double the number of households in Delaware.
- As the data center project in Delaware could consume as much power as 1 million homes, experts in environmental science and technology anticipate that it might lead to higher electricity rates for consumers, and advocate for regulatory studies to quantify the data center’s impact on residential rates and alleviate community concerns.
