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The Data Center Divide

New Castle County

Anti-Data Center Policies

New Castle County requires data centers to undergo special-use review in certain zones, with residential setbacks, noise limits, and financial guarantees for removal and site restoration. The descriptions call the ordinance both enacted and something that “would” apply.

current law · County measure
Restricts where data centers may be built in New Castle County and sets requirements for noise, water use, energy systems, decommissioning, and annual compliance reporting.New Castle County Ordinance 25-101 (2025-2026)

What this means

The measure would allow data centers only through special-use review in certain zones and imposes major siting and operating conditions, including a 1,000-foot residential setback that may be reduced only to 500 feet with approval and noise limits (siting and noise rules). It also requires financial assurance covering removal and site restoration, plus other environmental and reporting measures, creating significant added costs and hurdles (financial assurance requirement).

People behind it

  • Prime sponsor of Ordinance 25-101 and sponsor of Substitute No. 3.

  • Co-sponsor of Ordinance 25-101 and Substitute No. 3.

  • Co-sponsor of Ordinance 25-101 and Substitute No. 3.

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  • Co-sponsor of Ordinance 25-101 and Substitute No. 3.

  • Co-sponsor of Ordinance 25-101 and Substitute No. 3.

  • County Executive who signed the ordinance; official signing announcement: https://www.newcastlede.gov/CivicAlerts.aspx?AID=2615#:~:text=to%20sign%20Substitute%203%20to%20Ordinance%2025-101

  • Administers data-center special-use standards, noise studies, financial assurance and annual compliance reporting under Section 40.03.343: https://mcclibraryfunctions.azurewebsites.us/api/ordinanceDownload/14845/1416770/pdf#:~:text=Sec.%2040.03.343

Restrictions & requirementsHide restrictions & requirements14
  • The use table allows data centers only through special-use review in the I, HI, and EX districts and lists them as prohibited in the other districts shown. Data Centers

  • The additional standards apply to every data center development and to cumulative expansions of an existing center exceeding 20,000 square feet. every data center development

  • A data center building generally cannot be within 1,000 feet of a residential district. The Department may approve a location between 500 and 1,000 feet only if a site-specific noise study demonstrates compliance with the applicable noise limits. no closer than 500 feet

  • The site must be designed so the data center does not exceed predevelopment noise levels at neighboring residential properties; a noise study must assess the impact and verify consistency with County noise rules. A noise study shall be submitted

  • Except along lot lines adjoining an existing office or industrial park or an existing industrial use, buffers, street trees, berming, and landscaping must be upgraded where appropriate to mask the development. Buildings must meet the standards for large industrial structures. bufferyards, street trees, berming and landscaping

  • Traffic estimates must use the latest published ITE manual. A data center cannot be converted to a use that exceeds the approved Transportation Improvement Study or equivalent unless a new study is completed and approved. latest published ITE manual

  • Open-loop or once-through cooling is prohibited unless reclaimed water is used. Open-loop or once-through cooling is prohibited

  • Generators must be Tier IV or use alternative technologies the applicant demonstrates are more efficient and have less environmental impact. All generators shall be Tier IV

  • Proposed energy storage systems must employ fire-safe technologies determined and approved by the State Fire Marshal’s Office. approved by the State Fire Marshall’s Office

  • New or expanded facilities must submit documentation outlining operation of the building as a LEED-certified building. LEED certified building

  • Every data center must reserve an area for future integration with onsite or communal microgrid components, including generation, storage, distribution, control, and metering or billing systems. must reserve an area

  • If a data center is out of active operation for more than six months, the operator or owner must notify the Department in writing. After one year without operation, it is considered abandoned; the operator or owner must resume operations and schedule an inspection, or remove all equipment and systems within six months. Within two years of abandonment, the site must be restored or a land-use application for a new use submitted. out of active operation for more than 6 months

  • Before a building permit is issued, the operator or owner must provide financial assurance acceptable to the Department covering 100% of the anticipated cost of removing site improvements and restoring the site after abandonment. A decommissioning report is required, and the assurance must remain in effect, be renewed every five years, and be revised as needed for inflation or cost changes. 100% of the anticipated cost

  • The operator or owner must provide the Department an annual report indicating compliance with applicable local, state, and federal regulations. supply an annual report

Benefits & exceptionsHide benefits & exceptions5
  • Data centers may seek special-use approval in certain zoning districts; they are not prohibited in every district. The use table marks data centers for special use review.

  • The Department may approve a data center building less than 1,000 feet from a residential district, but not closer than 500 feet, if a site-specific noise study demonstrates compliance with the applicable noise limits. The Department may approve data center structures located less than 1,000 feet.

  • Generators may use technologies other than Tier IV if the applicant demonstrates that they are more efficient and have less environmental impact. or other technologies that the applicant can demonstrate.

  • Open-loop or once-through cooling is allowed when reclaimed water is used; otherwise it is prohibited. unless reclaimed water is used.

  • Data centers must reserve space for possible future integration with onsite or communal microgrid components, enabling that option without requiring the components to be installed. reserve an area for future integration.

Sources

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