Some legislators are cautiously optimistic about the University of Delaware’s decision to cut their ties with a proposed data center and power plant.
The Data Centers LLC signed a long-term lease with UD in 2012, promising to spend $1.1 billion and bring 290 full time jobs to Newark, along with construction jobs to build the facility. Some, including Gov. Jack Markell (D-Delaware), supported the project as just the economic driver the state needs coming out of a recession.
Rep. Mike Ramone (R-Pike Creek Valley) says he trusts the university made the right decision to back out after careful consideration of possible environmental effects on the community.
He notes that he would’ve liked to see those jobs come to Newark, but adds he doesn’t think the move will mar the economic vitality of the city in the future.
“Long term, I am hopeful not. Short term, I absolutely think so," said Ramone. "In the short term, now we’re starting from scratch again so whatever we had ready to go is going to be delayed.”
Rep. John Kowalko (D-Newark South) has been a frequent critic of the initiative. He says he’s pleased UD shut down further action on it based on environmental issues cited in a report by university working group that studied the project plans.
Kowalko doesn’t deny that a data center alone would’ve been a boon to the community, but says the attached natural gas power plant would’ve scared away other potential campus tenants.
“I think if that was placed here, if that size of a power plant was placed on campus it would’ve discouraged some of the industry and the type of technology that the university would have liked to have encouraged to use that site,” said Kowalko.
The project called for an attached 279-megawatt, natural gas turbine to power the data center, with plans to sell excess energy to the grid.
UD officials pointed to the generator and insufficient plans to contain and reduce carbon emissions as the reason for breaking the lease.
Some lawmakers suggested those concerns were inflated.
“I’m very saddened to hear that the University of Delaware feels that they have to maintain a higher standard than is prescribed by state, federal or local law or regulation, but that’s their decision,” said Sen. Harris McDowell (D-Wilmington North).
McDowell co-chairs the Joint Finance Committee, which initially withheld $3 million in state funding from the institution earlier this year as a way to reignite conversations between The Data Centers and UD. That money was eventually restored. Talks between the two had reportedly cooled in recent months, concerning some state lawmakers that the opportunity to land the deal would falter.
Delaware could yet tap the benefits of the project, though.
McDowell and others have discussed courting the company to the Wilmington area should UD balk at the project. He says those talks will continue later Thursday afternoon.
“We haven’t had opportunities for that kind of development in quite a while,” said McDowell. “We’ve gotten a bank moving from one place in Delaware to another place in Delaware and stuff like that, but it’s a zero sum game.”