Why the data center industry came to Dickerson

Why the data center industry came to Dickerson

News ClipBethesda Magazine·Dickerson, Montgomery County, MD·4/6/2026

Atmosphere Data Centers proposes a large campus in Dickerson, Montgomery County, Maryland, on the site of a former coal plant. This project faces significant local opposition and prompts discussions on county-wide zoning restrictions and a potential moratorium on data center development due to environmental and power concerns. Separately, a lawsuit related to the QLoop fiber project in the region has been settled.

zoningoppositionenvironmentalelectricitywatermoratoriumlegal
Gov: Montgomery County Council, Montgomery Planning, Maryland General Assembly, Maryland Department of the Environment, County Office of Zoning and Administrative Hearings, Montgomery County Planning Board
Atmosphere Data Centers, a California-based company, has applied to Montgomery County for a campus of five data center buildings on a 110-acre parcel in Dickerson, Maryland. The site, part of a 700-acre former coal-fired power plant owned by Terra Energy, is attractive due to existing power, zoning, water, and fiber infrastructure. The proposed campus would use 360 megawatts of electricity and an average of 69,300 gallons of water daily for cooling from the Potomac River. Montgomery County Council Vice President Marilyn Balcombe stated that if the community had a choice, nothing would go there, reflecting growing resident concern over environmental and climate impacts. Local officials and environmentalists are advocating for stricter regulations, and some County Council members, including Balcombe, are pushing for new zoning rules to restrict data centers to industrial zones and introduce regulations on noise, emissions, and distance from residential areas. The Montgomery County Planning Board has also urged the council to differentiate data centers by size and impact. Calls for a temporary moratorium on data center development have emerged, with County Executive Marc Elrich indicating he would only pursue it with council support. Candidates vying to succeed Elrich, Evan Glass and Will Jawando, have expressed support for a moratorium of six months to two years, while Andrew Friedson has not. Atmosphere CEO Chuck McBride expects Montgomery Planning to complete its review of the application by July 2026. The article also touches on the QLoop fiber-optic network, essential for data center connectivity. Quantum Loophole, the initial developer, faced numerous Maryland Department of the Environment citations for state regulation violations during construction. TPG Real Estate, a main investor, sued Quantum Loophole, leading to an out-of-court settlement in December 2024 where Quantum Loophole stepped back, and Catellus was appointed to lead the project.