When data centers come knocking, counties should have a ‘wish list,’ officials say
Maryland officials are advising counties with data center moratoriums to create "wish lists" for community investments, acknowledging the industry's sustained growth. This guidance follows Amazon Web Services' withdrawal from a Calvert County project due to local opposition. The state faces significant grid strain from data center demand, leading PJM Interconnection to propose new rules for connecting data centers to the grid.
Maryland's energy office is urging counties with temporary data center moratoriums to develop "wish lists" to negotiate benefits from developers, acknowledging that data centers are a permanent fixture. Ian Ullman, deputy director of the Maryland Energy Administration, suggested counties leverage moratoriums to secure investments like schools and road upgrades while mitigating impacts. This advice follows Amazon Web Services' decision to withdraw from a planned project at the Calvert Cliffs nuclear plant in Southern Maryland, a move that came after voters unseated three county council members amid strong data center opposition.
The growing demand for data centers, particularly from AI, is placing immense strain on the PJM Interconnection electric grid, which serves Maryland and a dozen other states. Jason Stanek, executive director of governmental services at PJM, highlighted Maryland as one of the most concerning states due to its lack of high-voltage transmission lines, warning of potential grid disruptions as early as next year. Efforts to build new transmission lines, like the Maryland Piedmont Reliability Project, face significant public pushback.
In response to these challenges, PJM filed a proposal with the Federal Energy Regulatory Commission that would allow new data centers to connect to the grid but prioritize them for disconnection during power emergencies if they do not provide their own generation. Maryland People’s Counsel David Lapp emphasized that 93% of the projected data center demand growth on the PJM grid is from outside Maryland, primarily Virginia, Ohio, Pennsylvania, and Illinois. Lapp's office is working to shield Maryland residential customers from bearing the costs of infrastructure expansion driven by this demand, advocating for changes at federal and state levels.