What do data centers mean for MD commercial real estate?
Maryland is experiencing significant community pushback against data center development, leading Governor Wes Moore to issue an executive order for development guardrails and propose repealing a tax exemption. Across the state, 14 moratoriums and a full ban in Harford County are in effect, impacting commercial real estate and developer investment decisions. Developers are increasingly considering community benefit agreements and brownfield sites to address concerns.
Maryland's commercial real estate market is grappling with an evolving data center landscape, marked by significant community opposition and new regulatory measures. Governor Wes Moore recently issued an executive order to establish development guardrails for data centers, creating the Maryland Data Center Task Force to ensure protection for ratepayers and the environment, promote community participation, and enforce transparency. Additionally, Governor Moore committed to working with the Maryland General Assembly in 2027 to repeal the 2020 Data Center Sales & Use Tax Exemption.
This statewide action comes amidst existing challenges, including 14 moratoriums across Maryland and a complete ban in Harford County. Experts note that strong community pushback, driven by concerns over environmental impact and property values, is causing major tech companies like Amazon to withdraw from projects, such as the one at Calvert Cliffs, due to prolonged approval processes. Developers are now compelled to offer substantial community amenities, like funding for schools and parks, to secure local approvals.
The market continues to see a chase for