Gov. Moore sets new guardrails for Maryland data centers

Maryland Governor Wes Moore has signed an executive order to establish new statewide oversight for large data center developments. The order mandates a standardized state review process for projects requiring 25 megawatts of power or more, especially when seeking state permits, incentives, or support. This review will be based on five core principles: protecting ratepayers and the electric grid, providing economic benefits to Marylanders, incorporating community input, protecting the environment, and ensuring transparency and accountability.

The executive order also creates the Maryland Data Center Task Force within the Governor's Office. This task force, comprising representatives from various state departments including Energy, Commerce, Labor, Environment, Natural Resources, Agriculture, and Planning, will review qualifying projects, publish review requirements, maintain a public database of developments, and offer support to local governments. Each project reviewed will receive a public determination of "Aligned," "Conditionally Aligned," or "Not Aligned." Additionally, a public Data Center Dashboard will be created, updated monthly to track project locations, developers, tenants, projected electricity demand, water use, and the status of state requests.

Governor Moore stated that these new guardrails are designed to prevent data center development from increasing costs for Maryland ratepayers while enhancing environmental and community oversight. This action follows previous legislation signed in May that requires data centers to cover costs related to their energy infrastructure upgrades, rather than passing them on to other ratepayers.

Alongside the executive order, Governor Moore announced his intention to collaborate with the Maryland General Assembly during its upcoming legislative session to repeal the state's Data Center Sales and Use Tax Exemption, which was originally enacted in 2020 to attract the industry.