Montgomery County Council passes 18-month data center moratorium
The Montgomery County Council unanimously passed an 18-month moratorium on data center development, replacing a prior six-month executive order that was challenged by Atmosphere Data Centers. Concurrently, a zoning bill was approved to define data centers and establish future regulations, temporarily preventing new construction until specific locations are determined. This action was supported by residents concerned about noise, water usage, energy bills, and pollution.
The Montgomery County Council unanimously approved an 18-month moratorium on data center development, effective upon County Executive Marc Elrich's signature. This legislative action will supersede a previous six-month moratorium enacted by Executive Order, which had been legally challenged by Atmosphere Data Centers. At-large council member Will Jawando acknowledged the residents' strong desire for a meaningful pause to address concerns like noise, water usage, and tax rates.
Atmosphere Data Centers, a California-based developer with a proposed project in Dickerson, had filed an appeal against the executive order, arguing Elrich overstepped his authority. Council President Natali Fani-González indicated the new council-approved moratorium, having undergone a full legislative process including public hearings, would be immune to such appeals. Atmosphere CEO Chuck McBride expressed disappointment, stating the company had collaborated with the Council to present the Dickerson project as a sustainable redevelopment opportunity.
The council also passed a new zoning bill, which includes a definition for data centers – specifying an aggregate monthly electricity demand of at least 25 megawatts. This bill will serve as an interim measure, preventing new data center construction until planners and council members establish designated locations within the county. The overall aim, as stated by council member Dawn Luedtke and County Executive Elrich, is not to block all data centers but to ensure future developments adhere to environmental and residential protections. State and county studies are underway to inform these forthcoming regulations.