This article has been updated to include a statement from Delmarva Power.
DELAWARE - Gov. Matt Meyer has signed four new laws aimed at preventing large data centers from shifting infrastructure and energy costs onto utility customers while imposing new clean-energy requirements on developers.
The package requires large data center developers to pay for their own infrastructure costs rather than passing those expenses on to Delaware ratepayers. At the bill signing, Meyer described the measures as “the most comprehensive ratepayer and resident protections on data centers in our nation.”
Another part of the package removes data centers from a state program that provides certain facilities with tax incentives and state credits.
The laws also establish a “bring your own power” requirement for data centers. Under that provision, facilities must produce or secure their own electricity using clean energy. A data center that cannot arrange for its own clean power would not be allowed to operate in Delaware.
Delmarva Power responded to the signing of the legislature saying, "This legislation signed today builds upon and strengthens Delmarva Power’s existing protections. Together, these provisions provide additional measures to prevent shifting the costs and risks associated with serving new large-load customers to existing residential and business customers," said the utility. "At the same time, SB 326 is not the right way to solve the affordability challenges facing customers. The capital investment caps imposed by SB 326 are going to force Delmarva Power to suspend or delay projects that are essential to maintaining reliability, replacing aging equipment, preventing outages, and preparing the grid for growing demand and more severe weather. And they will have very little customer benefit compared to the outsized risk to customers when the state arbitrarily caps proper investment in the grid."
The state officials said the measures are intended to allow innovation and economic development while protecting people who already live in Delaware from higher energy costs and environmental impacts.
This comes after the recent rejection of an ordinance that would have opened the door for data centers inside Harrington city limits. Among the biggest concerns were water, sewer capacity, electricity, infrastructure, noise and potential impacts on the community.
