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Dover Considers 18-Month Moratorium on Data Centers

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With the fast growing demand of data centers, Dover is considering an 18 month moratorium to allow for new regulations. In our partnership with Spotlight Delaware, Delmarva Public Media's Don Rush talks with reporter Maggie Reynolds about this effort by the municipality. The full interview can be heard on this Friday's Delmarva Today at noon on WSDL and WESM.

Dover officials are considering an 18-month pause on new data center proposals as the city weighs how the rapidly expanding industry could affect its utilities, land use and finances.

Councilwoman Donyale Hall introduced the proposal after Kent County adopted stricter rules governing where data centers can be built. Spotlight Delaware reporter Maggie Reynolds said city leaders are concerned those restrictions could push developers toward Dover.

“They're not really prepared to have kind of formulated their policy on having data centers within city limits,” Reynolds said. “So they want to impose this moratorium so that they can take some more time to establish what the permanent policy of the city is about data centers.”

The debate comes as Dover faces competing financial and infrastructure concerns. Supporters argue data centers could bring new economic activity and revenue to a city that has struggled to balance its budget. But residents have also seen electricity rates rise, while large data centers can place substantial demands on electric, water and wastewater systems.

Reynolds said the city would need to determine “if those developers would provide their own electricity or pay for their own electricity” and how added demand would affect existing infrastructure.

Officials have also acknowledged interest from at least one potential data center developer, though details remain unclear. At the same time, a Wilmington-based company has announced plans for a hydrogen facility in Dover, adding another potential large user of city electricity and water as officials consider how future industrial development fits into the city.

Don Rush is the News Director and Senior Producer of News and Public Affairs at Delmarva Public Media. An award-winning journalist, Don reports major local issues of the day, from sea level rise, to urban development, to the changing demographics of Delmarva.
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