A proposal to build one of the largest data centers in the country near Delaware City has sparked outcry from residents, county and state lawmakers alike in recent weeks.
The data center, known as Project Washington, is expected to consume as much power as nearly twice the amount of all of Delaware’s existing housing units.
The proposal comes amid a region-wide energy crisis, but Delaware in particular is struggling with using far more energy than it generates, and that fact alone turns Gov. Matt Meyer off from the project.
“Having a large data center come here and just draw electricity off the grid is just a non-starter for me. I will do everything I can to make sure something like that doesn’t happen,” he told Delaware Public Media.
Gov. Meyer says while he doesn’t want to dismiss the amount of construction jobs the project could bring to the state, he notes the center would not provide a lot of permanent positions for Delawareans.
But the governor adds he’s not completely opposed to smaller data centers and other AI economy opportunities.
“We don’t want to be left behind in some backwater economy, so we’re looking at what we can do to make sure we can do projects, whether it’s data centers or other things, with the energy capabilities so that when a project comes in to create jobs, to help advance Delaware and advance Delaware’s economy, we’re not spiking everyone’s power bill, because that we’re just not going to do. There’s energy capacity available, but also making sure it’s sustainable,” he said.
Gov. Meyer says it’s his understanding the Washington Project is a by-right project, meaning as long as the proposal meets all the proper zoning and building codes, the first phase, which has already begin the process, will automatically be approved.
But he says New Castle County government and his own administration are analyzing the laws around that phase and making sure it does not have a disproportionate impact. New Castle County Council is also currently considering a new ordinance addressing data centers that would place stricter regulations on their development and operations going forward.,
As far as bringing more generation into the state to help combat energy shortfalls and eases ratepayer burden, Gov. Meyer says “stay tuned,” but notes his support of a Maryland offshore wind project with Delaware ties and the launch of one of the largest solar projects in Delaware history located in Kent County.
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Interview transcript:
Tom Byrne:
I want to move on to something else. Port of Wilmington. What can you tell us about where things stand with the Edgemoor Expansion Project? And I guess more specifically from you, does your vision differ from what's largely been discussed about this idea since it was first approached in 2018?
Gov. Matt Meyer:
Well, I mean, one of the one of the initial proponents, I think the guy that might have even created the idea of the Port Expansion back when they were talking about doing it right by the Delaware Memorial Bridge, the Rivers Edge Project, "Kimoko" Harris, is my appointee on the on the Port Board.
So, I'm a strong believer in Port expansion. The number of working-class jobs it creates would be wonderful for the city of Wilmington, wonderful for New Castle County, wonderful for our whole state.
I've been by the port several times. I've spoken to foreign governments about expanding opportunities to both import into the port and export out of the port. The port project itself remains held up. The port project is moving forward in a number of ways. The port project is not able to move forward in every way until a permit is issued from the Army Corps of Engineers. There was a court case about it. We're working on it. We're working with the Army Corps of Engineers, and we hope by the end of the year that situation will be resolved.
Tom Byrne:
Do you feel like, maybe it's not shovel-ready, but once that litigation is handled, do you feel like there's actionable things to do to get that project started?
Gov. Meyer:
Well, it's already happening, Tom. It's not like that… it's already moving forward.
It's a very complex project. There are a lot of moving parts. Are there going to be other hiccups? Almost certainly, yes. There will be. We're talking about at least a $500-$600 million project, probably more expensive than that. Just the financing of it is complex. The construction aspects of it are complex, and obviously a number of the legal aspects are complex as well. But my administration is fully committed to seeing this through and seeing it through for the good of Delaware and to the people of Northern Delaware.
Sarah Petrowich:
There was some public controversy between you and legislative leadership over the makeup of the Port Board, and lawmakers have reconstituted the Port of Wilmington Expansion Task Force.
So, you’ve got these two separate bodies working. Is there a need to get everyone on the same page to help move this project forward?
Gov. Meyer:
I think we're on the same page as far as moving the Port forward. I don't know.
I think there's a lot of politics behind the background that has a lot to do with the election last year. I don't pay much attention to it. My job is to deliver for Delawareans, especially in this day and age when there's I think working people are being crushed.
I think working people are being crushed by a president who has deceived them and lied to them, quite frankly, and that's President Trump. I think working people and potentially ports are being crushed by tariffs, by a national tax that just sort of came out of nowhere and is totally inappropriate. It's hard to find an economist who says this is a good idea.
There's no space for us to have, you know, little disagreements about election last year. Let's move forward. Let's build this port and let's serve Delaware.
Tom Byrne:
On the topic of economic development, there's a significant amount of pushback on a massive, proposed data center project near Delaware City, specifically over some of the electrical grid concerns, water use, other environmental factors. Where do you stand on this?
Gov. Meyer:
Yeah, we have a massive energy shortage in our country, in the region, in PJM, right, the exchange that Delaware and a number of states are on. Delaware imports way too much electricity.
We need to produce electricity and having a large data center come here and just draw electricity off the grid is just a non-starter for me. I will do everything I can to make sure something like that doesn't happen. Data centers, in most cases, don't create that many permanent jobs.
Often, they'll mean a lot in terms of construction jobs, which are important, but the construction jobs after it's built largely go away. This data center project proposed in Delaware City, from what I've read about it and what I understand, is a large, multi-phase project that I think will take six, seven, ten years to build out, which is real jobs and real opportunity. We don't want to, in a changing economy, moving towards an AI economy, we don't want to lose out.
We don't want to be left behind in some backwater economy, so we're looking at what we can do to make sure we can do projects, whether it's data centers or other things, with the energy capabilities so that when a project comes in to create jobs, to help advance Delaware and advance Delaware's economy, we're not spiking everyone's power bill, because that we're just not going to do. There's energy capacity available, but also making sure it's sustainable. A lot of the cooling of these data centers is really bad for the environment.
Tom Byrne:
The water use.
Gov. Meyer:
The water use. But there are some new technologies out there that we believe are more sustainable. Not just with data centers, but with anything. We're going to look at it.
How does Delaware benefit? With at least some of these initial data center proposals that I've seen, it's hard for me to see how Delaware benefits.
Tom Byrne:
Is there any concern that it looks like the first phase of this has already been filed and in process. Do you see any possibility of doing anything to stop that first phase, or is it a situation where that horse may already be out of the barn?
Gov.Meyer:
I don't have all the details on it. It sounds like with respect to local government and local land use, it is a by-right project, I think. I know the county government is working hard to see what the law is around it. We, too, are looking to make sure that it doesn't have a disproportionate impact, a bad impact on spiking… energy prices are already way too high. People's Delmarva prices, just in the past six months since I've been in office, have been ridiculous. Mine, in my house, I'm used to $70, $80, $100 bills. They’re now $300, $350. I'm fortunate I’m in a place where it's no fun, but I can handle that, and I understand a lot of Delaware families, it's something they can't handle. We're looking out for people. We're going to do everything we can to stop that from happening.
Tom Byrne:
Is there also concurrently work needed to be done on the electric grid problems? You're talking about not importing as much, whether it be via wind or other opportunities for the state to increase its portfolio?
Gov. Meyer:
Stay tuned. I signed a bill to move the offshore wind project forward, which is not directly a Delaware project, but it basically adds to the energy grid in a substantive way, in an important way.
I've already cut a ribbon on one of the largest solar projects in Delaware history in Kent County. There's some other stuff coming. Harjes, switching gears.
Sarah Petrowich:
Adult-use recreational marijuana sales started this month. The state reported $94,000 in revenue in the first three days. How do you feel about the progression of the rollout, especially under new Marijuana Commissioner Josh Sanderlin? Commissioner Sanderlin is fine.
Gov. Meyer:
We're very lucky he's not someone from Delaware. He's one of the leading thinkers on this issue. He looks at it from a business and community aspect, whereas traditionally Delaware has looked at it as a public safety issue.
What are we doing with marijuana? Number one, we've got to make sure communities are sustainable and they're safe and they're protected. I think there's a lot of concern in communities. I have small children. What are we doing? Do we want this thing all around our kids? I don't know how many of you have been to New York or San Francisco lately, but you go outside and there's that stench. That's not Delaware. We're doing everything to make sure that we continue to retain the same communities we have.
We also have a historic obligation. Marijuana and marijuana enforcement in this state has not been equitable. There are people in our communities today, almost all black and brown people, who have been imprisoned for years and years for using and selling marijuana, where people of different colors of skin have not had that same experience. We need to make sure we use whatever revenue we have to address that historic wrong going forward.
And also, I mean, as a number of legislators remind me, there is a revenue opportunity there for the state. But for me, it's clearly third.
We're continuing to watch and monitor to make sure communities are being protected as this economic opportunity grows and make sure people are safe.
Sarah Petrowich:
And there is still an important piece of the puzzle here, which is Senate Bill 75 that would address zoning issues that have limited where cannabis facilities can be located in counties. Will you sign Senate Bill 75?
Gov. Meyer:
Stay tuned. You'll hear soon. We will be taking action very shortly. I've made it very clear.. listen, I have local government background. I don't think it's appropriate that when state government likes local government regulation, they say, yeah, we support it. And when they don't like local government regulation, they overrule it. At the same time, it's important for communities that this moves forward.
Sarah Petrowich:
Is letting it go into effect without your signature on the table?
Gov. Meyer:
It's always on the table.
Tom Byrne:
Can I ask one question about the thing you just brought up?
Gov. Meyer:
It's your show, Tom. You can ask whatever you want.
Tom Byrne:
Local versus state control. It seems to be coming up in a lot of different areas here.
Gov.Meyer:
Of course, yeah. Not the first time.
Tom Byrne:
No, I know. But I'm wondering, does it seem like we're seeing a little bit more of that butting up against each other in this state? It has been an issue before. I'm not denying that. But it does seem like recently it's been a little bit more testy.
Gov. Meyer:
I will say this. Now I'm spending a lot more time with other governors from other states around the country, often larger state governors. It is interesting in Delaware, because we're a small state. I think state representatives and state senators here in particular, and governors are much more involved in sort of the local pothole type issues. Governor Newsom (in California) and even Governor Stein in North Carolina or Governor Shapiro in Pennsylvania, Governor Moore (in Maryland), they don't get involved at the level we often get involved.
So, I was talking to Governor Polis of Colorado about marijuana regulation just the other day and he's just like, just let the counties do it. He has too many counties to know. I was asking, what's the regulation of counties? He's like, I have no idea. He's like, some do it, some don't. I don't really know.
Tom Byrne:
But he's not going to run into the problem, though, where if there's enough zoning laws, there's literally no place to put the facilities. That's probably not a problem for him.
Gov. Meyer:
That's right. Colorado is much larger. I think it's a three-mile limitation from schools. So, we're working directly with Sussex County. We're going to see what we can do.
Sarah Petrowich:
Continuing with political controversy, there's been continued drama over the legislatively created Diamond State Hospital Cost Review Board, which is politically appointed and they will review hospital budgets to make sure their spending is in line with the state's health care spending benchmark.
There was extensive controversy over the creation of the board while the bill was making its way through the General Assembly. And it is currently facing legal challenges from Christiana Care. There is a lot of nuance here. But when all is said and done, the goal of this board is to curb rising health care costs in Delaware.
You have made it clear that affordable health care is very important to you. So, with all of the turmoil surrounding this board, do you think it's more trouble than it's worth?
Gov. Meyer:
Do I think the board is more trouble than it's worth? I think we've got to do everything we can in our power to make sure there's affordable health care for Delawareans. There are a number of ways to do it.
One is a hospital review board. There are other things I talked about a lot in the campaign like competition. We basically have four, three to four monopoly hospital systems in our state, Christiana Care in New Castle County, Bay Health in Kent County, Beebe in Eastern Sussex, and Title Health in Western Sussex.
Monopoly services for anyone doesn't bode well. If I'm the only person selling milk in the town, I can charge any price I want and I can give you any quality you want. And I think we're seeing some of that.
So, we're doing everything we can to address that situation. I think the review board is potentially one tool in the toolbox. As you know, it's under litigation. I can just about feel my phone blowing up saying, don't say this, don't say that. But I think it's important that we move forward with it as a tool in the toolbox to hold the hospitals accountable.
Sarah Petrowich:
So, it's important that you say for it to move forward, although it obviously wasn't done under your administration. I'm just curious, is it a priority for you or are there other avenues?
Gov. Meyer:
Our priority is doing anything we can to bring down health care costs. It's also important to note that not only was I not in office when House Bill 350 was introduced, passed and signed into law, when it was first consummated and most of the members were appointed, but also the landscape is changing pretty rapidly. We have estimates of up to 70,000 Delawareans, about 7% of Delawareans, that due to loss of Affordable Care Act subsidies and changes to Medicaid may have no health insurance.
Keep in mind, when you say have no health insurance, that actually doesn't mean they don't go to the doctor. It just means the state doesn't pay for them going to the doctor anymore. They're still going to go and the hospitals are going to be left hung out to dry.
There are estimates across the country that thousands, thousands of hospitals may go out of business because this bill, the big bill that President Trump signed a few weeks ago. So we're monitoring that. I mean, we don't want to do anything that contributes to one of our main hospital systems going under while at the same time making sure prices are competitive and the quality and accessibility for Delawareans is really high.
