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Data center regulations in Delaware

Graded Extensive and tightening. 13 laws, orders, rulings and local actions, each with its source, reviewed 23 October 2026.

Reviewed 23 October 2026 · Part of the Data Center Rulebook

Bring-your-own clean power law signed; Project Washington blocked

Extensive↑ TighteningGrid: PJM13 items
10in force
3pending
0local pauses
paused or sunsettax break
5.0combined index (5 most)
10.4cper kWh, industrial
23 October 2026reviewed
Regulation3.8 / 5
  1. Grid connection5

    HB 445, signed 26 Aug 2026, makes data centers build their own generation, 25% before connecting; the PSC paused Delmarva connections above 25 MW in Oct 2025.

  2. Power rates4

    HB 233, signed 26 Aug 2026, puts large loads in a separate rate class with an incremental cost test, exit fees, bonding and first curtailment.

  3. Siting and land use3

    The Coastal Zone Act ruling upheld in March 2026 killed the 1,200 MW Project Washington; New Castle (March 2026) and Kent (July 2026) counties set buffers.

  4. Tax treatment4

    HB 310, signed Aug 2026, cuts data centers off from job-creation tax credits unless they bring their own generation; Delaware has no sales tax to exempt.

  5. Permits and water3

    SB 312, signed 26 Aug 2026, bars state and local governments from signing NDAs with data center developers; SB 308 adds load forecast oversight.

Scored on rules in force, 1 to 5. 5 is the most regulated. Pending rules set the arrow.

Governor Meyer signed a package on 26 August 2026 that puts large loads in a separate, higher rate class (HB 233), requires data centers to build new generation that meets renewable portfolio standards within 10 years (HB 445), restricts job-creation tax credits for them (HB 310) and bars state and local governments from signing non-disclosure agreements with developers (SB 312). The Public Service Commission paused new connections above 25 MW in Delmarva Power territory in October 2025 until a large-load tariff is in place, and that tariff case (Docket 25-0826) had still not been decided as of October 2026. The 1,200 MW Project Washington near Delaware City cannot proceed as designed after the state environment agency ruled it violates the Coastal Zone Act and the developer withdrew its court appeal in July 2026. New Castle County adopted data center zoning rules in March 2026 and Kent County followed in July 2026. Delaware has no state sales tax, so there is no sales tax exemption to speak of.

Outlook for the next year

The commission still has to finish the Delmarva large-load tariff in Docket 25-0826 and align it with HB 233; no decision had been found as of 23 October 2026, and the pause on new connections above 25 MW holds until it is set. Dover's proposed 18-month moratorium cleared a council committee unanimously on 11 August 2026, and a full council vote expected around October 2026 had not been confirmed. Kent County's attorney is reviewing whether a county moratorium or ban is legally possible. Starwood says it is looking for a redesign of Project Washington, and a 300 MW proposal near St. Georges is at an early stage among four large-load requests before Delmarva.

Does Delaware have a data center moratorium in force?

Yes. Delaware has a statewide pause in force as of 23 October 2026: the regulator's pause on new large-load connections.

Is Delaware tightening or loosening its rules on data centers?

Tightening. Delaware is graded Extensive, which means a statewide halt on permits or connections, or binding rules that stop most new projects. Bring-your-own clean power law signed; Project Washington blocked. The outlook above says what is pending.

Which grid operator covers Delaware?

Delaware sits in PJM. The grid operator decides how a new large load is studied, what it must bring or pay, and whether it can be curtailed first; the state decides siting, permits, tariffs and incentives.

Has Delaware cut its data center tax incentive?

Yes. Delaware has paused, narrowed or ended a data center incentive in 2025 or 2026: HB 310: job-creation tax credits restricted for data centers.

How regulated are data centers in Delaware?

On Genloop's five-line rubric (1 least regulated, 5 most) Delaware scores grid connection 5, power rates 4, siting and land use 3, tax treatment 4, permits and water 3, a mean of 3.8. The most regulated line is grid connection: HB 445, signed 26 Aug 2026, makes data centers build their own generation, 25% before connecting; the PSC paused Delmarva connections above 25 MW in Oct 2025.

Every item, newest first

13 items: each is a law, order, tariff, ruling, utility action or local decision that changes what a data center must do, pay or disclose, or where it may be built. Failed and pending measures are marked. Each links to its source.

  1. State lawAug 2026costs and tariffsIn force

    HB 233: separate rate class for large loads

    Signed 26 August 2026. Delmarva Power must put large energy users in their own rate class so they pay their own energy, infrastructure and capacity costs, with early exit fees, bonding, an incremental cost test and first-in-line curtailment at peak. The bill was described in March 2026 as applying from 20 MW.

    Source: whyy.org
  2. State lawAug 2026on-site powerIn force

    HB 445: bring your own generation

    Signed 26 August 2026. Data centers must build new generation to cover their demand within 10 years, with 25 percent in place before connecting, at least 50 percent of backup power from storage, and no coal, peaker or diesel plants for baseload supply.

    Source: sierraclub.org
  3. State lawAug 2026incentivesIn force

    HB 310: job-creation tax credits restricted for data centers

    Signed with the August 2026 package. Press reports say data centers can no longer claim job-creation tax credits; the bill's sponsors' allies describe it as limiting the credit to projects that bring their own generation under HB 445.

    Source: whyy.org
  4. State lawAug 2026disclosureIn force

    SB 312 and SB 308: no secrecy agreements; load forecast oversight

    SB 312, signed 26 August 2026, bars state agencies, counties and municipalities from signing non-disclosure agreements with data center developers and operators. SB 308, the Load Forecast Accountability Act, signed 23 July 2026, gives the commission oversight of Delmarva's load forecasts to PJM, requires financial commitments before large loads are counted and stops projects shopped to several states from being double counted.

    Source: legiscan.com
  5. State lawAug 2026costs and tariffsIn force

    SB 326: limits on utility capital spending recovered from ratepayers

    Signed 26 August 2026 alongside the data center package. It limits and adds oversight to non-mandatory capital spending that monopoly utilities such as Delmarva Power can recover from residential ratepayers.

    Source: news.delaware.gov
  6. LocalDoverAug 2026moratoriaProposed

    Proposed 18-month moratorium on data centers

    Councilwoman Donyale Hall's ordinance would halt acceptance, processing, review, approval and permitting of new data centers within city limits for 18 months while Dover writes permanent rules. A council committee voted unanimously on 11 August 2026 to send it to the full council via planning and zoning; a council vote was expected around October 2026 and had not been confirmed.

    Source: delawarepublic.org
  7. ExecutiveDelaware City (New Castle County)Jul 2026siting and zoningIn force

    Project Washington barred under the Coastal Zone Act

    The environment secretary ruled that the 1,200 MW campus, with 516 diesel backup generators and about 2.5 million gallons of stored diesel, is prohibited heavy industry in the coastal zone. A state board upheld the ruling in March 2026 and Starwood Digital Ventures withdrew its Superior Court appeal in early July 2026.

    Source: newsfromthestates.com
  8. LocalKent CountyJul 2026siting and zoningIn force

    Levy Court adopts first data center zoning rules

    On 21 July 2026 Kent County Levy Court unanimously approved an ordinance limiting data centers in unincorporated areas to certain industrial zones, with a 300-foot buffer from homes, vegetative screening, noise limits and proof of adequate water and electric service. Projects meeting the rules can still proceed by right without a hearing; the county attorney is reviewing whether a moratorium or ban is legally possible. Sen. Eric Buckson's statewide moratorium bill, SB 353, did not get a vote before adjournment.

    Source: wboc.com
  9. State lawDelaware Electric CooperativeJun 2026grid connectionIn force

    SB 276: cooperative need not supply data center power

    Signed 10 June 2026. The cooperative must build the infrastructure a data center needs if the developer pays for it, but is not obliged to supply the electricity.

    Source: legiscan.com
  10. UtilityDelmarva PowerJun 2026grid connectionPending

    Large-load requests disclosed in the tariff case

    Records released in June 2026 show four requests under review: 1,200 MW and 300 MW in New Castle County, 100 MW in Kent County and one of undetermined size, plus a withdrawn 30 MW project.

    Source: technical.ly
  11. LocalNew Castle CountyMar 2026siting and zoningIn force

    Data center zoning ordinance adopted

    Adopted 12-0 on 11 March 2026. Data centers must sit 1,000 feet from residential zones, schools and daycare centers (500 feet with a site-specific noise study), open-loop cooling is prohibited, and screening landscaping and bufferyards are required. The original draft's 55-decibel limit and lighting rules were eased. It applies only to applications filed after enactment, so Starwood's Project Washington is exempt unless it opts in.

    Source: delawarepublic.org
  12. RegulatorDelmarva PowerMar 2026costs and tariffsPending

    Large-load tariff case, PSC Docket 25-0826

    Delmarva's proposed tariff applies at 25 MW of peak demand (the utility also floated 50 MW) with upfront financial commitments and terms for projects that shrink or withdraw. Comments ran to 6 April 2026, the final tariff was due 27 April, and a hearing examiner's findings were expected in summer 2026.

    Source: technical.ly
  13. RegulatorDelmarva PowerOct 2025moratoriaIn force

    Pause on new large-load connections

    On 15 October 2025 the Public Service Commission opened the large-load tariff proceeding and said connections of new users above 25 MW in Delmarva territory are paused until the tariff is set.

    Source: delawarepublic.org

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