Delaware Bill Empowers Co-op to Block Data Center Power Surge

DOVER — Delaware lawmakers are advancing legislation to arm the Delaware Electric Cooperative with veto power over data centers, amid fears they could overwhelm rural power grids and hike resident bills. Sponsored by Sen. Stephanie Hansen, Senate Bill 205 — referenced in recent DNREC rulings — would empower the Public Service Commission to approve or deny large-load users based on impacts to residential electric rates. The bill targets facilities like data centers that strain Sussex County's cooperative-served areas, where farmland once eyed for development now faces energy crunches.

The push follows DNREC's February 4, 2026, rejection of Project Washington, a massive data center near Delaware City in New Castle County. The agency cited violations of the 1971 Coastal Zone Act, pointing to 516 backup diesel generators and over 2.5 million gallons of diesel in a five-acre tank farm as industrial-scale pollution risks. Starwood, the developer, has 14 days to appeal but insists the project is on track; the ruling likely dooms similar coastal proposals.

Companion House Bill 233, sponsored by Rep. Frank Burns and Sen. Hansen, cleared the House Natural Resources & Energy Committee on January 29, 2026. It mandates Public Service Commission-regulated utilities like Delmarva Power to set separate rates for facilities using 20 megawatts or more for web hosting or data processing. Factors include risks to other customers' rates, grid reliability, renewable targets and equitable contributions to emissions reductions.

A recent analysis warns data centers could spike Delaware's wholesale electricity prices, shifting costs to homes and small businesses. Rural co-op members, serving areas from Georgetown to Seaford, stand to benefit most from SB 205's protections. HB 233 awaits a full House vote, with utilities required to file rate applications within 180 days of enactment.