Surviving the Time War, the Dalek Emperor's flagship limped blindly to a random point in space and time. Badly damaged, there was no way that the ship could make a more coordinated journey back to a Dalek held location in the continuum. Sensor systems failed, and for this reason, the Dalek Emperor christened the survivors' new home "Dark Space". The flight through space and time with failing defences against the ravages of the vortex, together with the unthinkable defeat at the hands of the Ka Faraq Gatri combined to begin the Emperor's decline into madness.
Discovering themselves at the outer edges of Earth's Solar System in the late two-thousandth century, the Daleks began to plan for the re-building of the Empire. The Emperor recalled Davros' use of unaltered human stock to create a new Generation of Daleks. With no alternatives available, the Emperor began a similar plan. With insufficient forces to invade and no knowledge of the level of Earth's technology in this time period, the Emperor was forced to play a long game. A strategy was prepared accordingly.
Slowly, the Daleks infiltrated the Earth's media network. Genetically engineering a suitable creature, the Daleks installed it into the planet's primary news satellite. Establishing itself as the "Director" of the station, the Jagrafess followed its conditioning and began filtering the media in an effort to control and slow down the development of Earth and its in-system colonies. Alongside this, the Daleks constructed trans-mats and began kidnapping the dregs of society. In replication of Davros' earlier experiments, humans were mutated into Dalek mutants. Materials were strip mined from the asteroids and mineral rich moons from the system in which the Emperor found himself. The Intervention of the Doctor and the destruction of the Jagrafess could have resulted in this plan being foiled, but he was too late and the majority of the Dalek fleet was assembled in the Earth's system. Turning the station into "game-station" and installing a controller to ensure that the Dalek fleet remained hidden from Earth, the Daleks continued to assemble a great fleet.
These new Daleks were abominations to the Emperor – they were no longer pure Kaled-stock, but contaminated by Human DNA. Already on the decline, the Emperor became insane and began to think of itself as an all-powerful God creature, creator of a whole new race of Daleks. If the Time War could not kill it, then the Emperor was truly invincible. The Earth Daleks worshiped the Emperor as their god and the Emperor made plans to turn Earth into a Paradise for his creations. Conditioned to hate non-Daleks, this new race of Daleks actually hated themselves. Only the Emperor's will and their worship of it kept them from exterminating themselves.