Deals Counterparts

Starwood Digital Ventures proposes data center project with New Castle Campus Development LLC

Development Data Center announced USA Mar 2, 2026
development
Stage
Project Washington
Project

Starwood Digital Ventures, a subsidiary of Starwood Capital Group, proposed a multi-phase data center project in Delaware with landowner New Castle Campus Development LLC.

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Deal Analysis

Starwood Digital Ventures, a subsidiary of the prominent Starwood Capital Group, has announced a proposed multi-phase data center development project in Delaware, USA, in collaboration with landowner New Castle Campus Development LLC. This development-type deal signifies Starwood Capital Group's strategic intent to expand its footprint within the rapidly growing digital infrastructure sector, leveraging its extensive real estate development expertise. The multi-phase nature of the project suggests a substantial, long-term investment aimed at creating significant new data center capacity. The involvement of Starwood Capital Group through its digital ventures arm is particularly notable, highlighting the increasing convergence of traditional real estate investment with specialized infrastructure assets. As a major global private investment firm, Starwood's commitment to this greenfield development underscores the perceived value and robust demand within the data center market. While specific capacity and financial details remain undisclosed, the announcement of such a project by a player of this caliber indicates a serious move to capitalize on the ongoing need for digital infrastructure, driven by cloud adoption, AI, and enterprise digitalization across the United States.
  • Involvement of Starwood Capital Group (via Starwood Digital Ventures), a major global investment firm.
  • Multi-phase data center development project, indicating significant scale potential.
  • Partnership with a landowner (New Castle Campus Development LLC) for a greenfield development.
  • Located in Delaware, USA, a key market for digital infrastructure.
  • Represents a development play in the high-growth data center sector.

Source Intelligence

KEY DETAILS

The project was designated as a 'heavy industrial use' by the state’s Department of Natural Resources and Environmental Control on February 3, which effectively rejected the proposal as such properties are prohibited from development in the Coastal Zone. Starwood Digital Ventures submitted an appeal on February 17, arguing that data centers are not heavy industrial properties and alleging procedural and legal errors. The project is multi-phase: the first phase would include six 500,000-square-foot (46,450 sqm), two-story buildings for a total of about 3 million square feet; the second phase would see two 500,000 sq ft, two-story buildings and three 700,000 sq ft (65,030 sqm), two-story buildings developed, totaling around 3.1 million sq ft (288,000 sqm).

Location
to build a data center in Delaware’s Coastal Zone. ... two land parcels in the state’s Coastal Zone at Hamburg Road and Governor Lea Road.
Announcement
Starwood Digital Ventures, a subsidiary of Starwood Capital Group, proposed the project in July 2025
PARTIES MENTIONED IN SOURCE
S
Starwood Digital Ventures developer

"Applicant Starwood Digital Ventures is appealing a rejection to its plans to build a data center in Delaware’s Coastal Zone."

S
Starwood Capital Group investor

"Starwood Digital Ventures, a subsidiary of Starwood Capital Group, proposed the project in July 2025"

N
New Castle Campus Development LLC landowner

"proposed the project in July 2025 with landowner New Castle Campus Development LLC"

P
PBF Energy other

"an entity tied to PBF Energy."

high quality Enriched Mar 2, 2026

Timeline

Announced
Mar 2, 2026
Signed
Closed

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