Maryland sets new rules for large data centers as Moore calls for ending tax exemption
Governor Wes Moore has issued an executive order establishing new rules for large data centers in Maryland and is advocating to repeal the state's data center sales and use tax exemption. A new Maryland Data Center Task Force will review projects exceeding 25 megawatts, focusing on ratepayer protection, economic benefits, community input, environmental safeguards, and transparency.
Governor Wes Moore has enacted an executive order in Maryland to establish new regulatory frameworks for large data centers and announced his intention to collaborate with the General Assembly to repeal the state's data center sales and use tax exemption, which was implemented in 2020. This move aims to increase transparency and accountability within the rapidly expanding data center industry in the state.
The executive order creates a Maryland Data Center Task Force, charged with reviewing projects that consume 25 megawatts or more of power. This task force will assess proposed developments against five key principles: safeguarding ratepayers and the electric grid, ensuring economic benefits for Maryland residents, incorporating community input, protecting the environment, and promoting transparency. Projects will receive public determinations of "Aligned," "Conditionally Aligned," or "Not Aligned" after review.
Furthermore, the order mandates the creation of a public Data Center Dashboard, to be updated monthly, providing details such as project location, developer, parent company, projected power and water demands, and the status of state actions and decisions. Governor Moore's initiative reflects a broader effort to manage the growth of data centers while balancing economic development with environmental and community concerns.