Maryland Governor Signs Order to Regulate Large Data Center Projects
Governor Wes Moore signed an executive order creating a statewide review process for data centers with peak demand of 25 megawatts or more. The order establishes a task force to coordinate reviews and addresses concerns about costs to ratepayers and communities. Moore also plans to work with the legislature to end a key tax exemption for data centers.
The order applies to new or expanded facilities with a projected peak demand of at least 25 megawatts. It establishes a task force under the Governor's Office, bringing together seven state agencies to centralize permit and incentive reviews. The task force will evaluate whether developers have credible demand projections and plans to avoid shifting infrastructure costs onto existing utility customers.
Moore also intends to push for repeal of the 2020 sales and use tax exemption for data centers during the next legislative session. The administration cites federal regulatory rollbacks as a reason for state-level action. Developers will now face requirements for plain-language community disclosures, a resident point of contact, and evidence of local hiring and wage benefits as part of the review.
This order could reshape the data center landscape in Maryland, potentially slowing large projects while giving ratepayers and local communities a stronger voice in siting decisions. Developers may face higher upfront costs and longer approval timelines, which could deter some investment but also prevent hidden public subsidies. The push to repeal the tax exemption may reduce state revenue but could also shift fiscal burdens away from residential customers. Other states facing similar infrastructure strains may watch this model closely.