New data centers in neighboring Maryland to get additional scrutiny under governor’s order
Maryland Governor Wes Moore is establishing a state task force to scrutinize new data center proposals and advise local governments. The task force will evaluate projects based on state principles, including environmental protection and electricity ratepayer costs, with the power to delay state permits for non-compliant projects. Moore also plans to advocate for the repeal of a state tax exemption for data centers and expressed openness to a statewide moratorium if a bill passes.
Maryland Governor Wes Moore has issued an executive order establishing a state task force to provide additional scrutiny for new data center proposals across the state. The task force, comprised of seven state agencies, will evaluate projects exceeding 25 megawatts based on their alignment with state principles, including environmental protection, community support, and the impact on electricity ratepayers. Projects deemed "not aligned" could face delays in state permit consideration and be ineligible for state incentives, grants, or financing.
During a news conference in Annapolis, Governor Moore also announced his intention to advocate for the repeal of a 2020 state tax exemption for data centers in the upcoming legislative session. He clarified that while his executive order stops short of a statewide ban, he would sign a moratorium bill if it passed the legislature. Additionally, Moore mandated that state agencies cease entering non-disclosure agreements with data center developers.
The governor's actions drew mixed reactions. Environmental groups like Food & Water Watch and the Chesapeake Climate Action Network, along with Green Party candidate Andy Ellis, criticized the order as insufficient, calling for a full statewide ban or moratorium and stronger environmental conditions, such as requiring 100% clean energy for new facilities. Conversely, Maryland Senate Minority Leader Steve Hershey (R-Upper Shore) expressed concern that Moore's policies could undermine Maryland's competitiveness in attracting technology and data center investments.