Tech industry’s warning as Maryland counties block data centers
Multiple Maryland counties have imposed moratoriums or outright bans on data center development, prompting the tech industry to warn of infrastructure and economic setbacks. Amazon recently withdrew from a planned project in Lusby amidst this widening standoff, while residents continue to raise environmental concerns regarding air pollution and water usage. Proponents emphasize the economic benefits, but opposition remains strong.
Charles Degliomini, Executive Vice President at Rekor Systems, has expressed concern that Maryland counties' efforts to block data centers will hinder the necessary infrastructure for artificial intelligence growth. He warned that continued restrictions could lead to processing bottlenecks and slower AI response times, impacting both businesses and consumers. This warning follows Amazon's recent decision to withdraw from a planned data center project in Lusby, a move the Maryland tech industry cites as a cautionary tale.
The withdrawal comes amidst a growing conflict between Maryland counties and the data center industry. Howard, Prince George's, Carroll, and Baltimore City have all imposed temporary moratoriums on data center construction. Harford County has enacted an outright ban, and Anne Arundel County is considering further restrictions. Kelly Schulz, CEO of the Maryland Tech Council, anticipates these restrictions will drive the industry out of state, costing Maryland potential economic benefits and tax revenues that states like Virginia have gained from data center development.
Public opposition to data centers is significant, fueled by concerns over environmental and community impacts. Hillary Gonzalez of The People’s Green Liberation Coalition and a Remington resident, dismisses potential financial gains, citing health risks from air pollution caused by diesel backup generators and substantial water consumption for cooling. A proposed data center in Frederick County, near Adamstown, has faced intense resident opposition primarily due to water use concerns, despite projections that it could generate $215 million annually for the county by 2036. Harford County Executive Bob Cassilly reiterated his county's ban, emphasizing the importance of protecting quality of life and rural character over data center development. Joseph Dominguez of Constellation Energy acknowledged public concerns but maintained that solutions are "far from unsolvable," suggesting data centers could even stabilize electricity costs.