Delaware Proposes 'Large Load' Tariff for New Data Center Projects Amid Controversy

Delaware's governor aims to establish the state as a hub for data centers while preventing financial burdens on residents. Project Washington, a planned 6-million-square-foot data center near Delaware City, has sparked opposition from residents concerned about energy costs.

The state plans to implement a 'large load' tariff for data centers using over 25 megawatts of power, requiring these facilities to cover costs for energy and water upgrades, rather than passing them to residential customers. This proposal follows similar initiatives from neighboring states to expedite data center approvals linked to power generation commitments.

The Delaware Public Service Commission has paused new major interconnections until the tariff is established. The Federal Energy Regulatory Commission is also seeking rules to support AI data centers while maintaining reasonable utility rates. The permitting process for these data centers in Delaware is still in early stages.