Elrich signs executive order pausing new data center permits for six months

Montgomery County Executive Marc Elrich signed an executive order instituting a six-month moratorium on new data center permit applications, effective immediately. The order aims to provide the County Council with time to establish clear rules and expectations for the rapidly growing industry, as current regulations are deemed insufficient.

While Elrich's order prevents the county's permitting department from processing new applications, it does not impede the Montgomery Planning Board's ability to review and approve existing plans. Notably, Atmosphere Data Centers' amended conditional use application for a five-data center campus at a former coal plant site in Dickerson, owned by Terra Energy, is still proceeding. The Planning Board is scheduled to review Atmosphere's battery storage facility application on July 23 and the updated conditional use application for the Dickerson project on July 30.

The County Council has been engaged in months-long discussions regarding data center development, with several members proposing new legislation. Council President Natali Fani-González, Vice President Marilyn Balcombe, and Councilmember Laurie-Anne Sayles introduced a zoning text amendment to limit where data centers can be built and impose provisions on noise, carbon emissions, and water use. Councilmember Evan Glass previously introduced legislation for a task force to study impacts and later proposed a six-month moratorium, which he credits Elrich for now supporting. Councilmember Will Jawando, endorsed by Elrich as his successor, along with Councilmember Kristin Mink, introduced legislation for a two-year pause on data center development to address state-level issues like energy costs and taxing authority.