Montgomery County considers 2-year data center moratorium bill
Montgomery County, Maryland, is considering a bill introduced by Council member Will Jawando that would establish a two-year moratorium on data center building permits. This pause aims to allow the county to develop new regulations concerning clean energy use, noise pollution, and tax rates for data centers. The move comes as Maryland Governor Wes Moore signed legislation demanding data centers pay their own electricity costs amid rising utility bills.
Montgomery County, Maryland, is currently evaluating a new bill, the Data Center Moratorium, introduced by Council member Will Jawando. This proposed legislation seeks to implement a two-year halt on the issuance of building permits for data centers within the county.
The primary objective of the moratorium is to provide the county with sufficient time to establish comprehensive laws and regulations. These regulations would address critical issues such as clean energy usage, noise pollution, and equitable tax rates, as Jawando highlighted that data centers currently pay the same tax rate as single-family homes. He emphasized the need to "be right" rather than "first," pointing to concerns about environmental impact, including potential emissions from a data center development at the old Dickerson coal plant site comparable to those of a small city.
This local legislative effort aligns with recent actions taken by Maryland Governor Wes Moore, who this week signed the Utility Relief Act into law. The Act demands that data centers in the state bear their own electricity costs and calls upon PJM, the nation's largest grid operator, to do more for ratepayers amidst skyrocketing utility expenses. Maryland currently hosts about 40 data centers, significantly fewer than Virginia's more than 600, largely concentrated in Northern Virginia.
The Data Center Coalition, an advocacy group, has expressed concerns that this moratorium would signal unwelcomeness to the industry in Montgomery County, potentially diverting capital investment to more receptive surrounding localities. A PWC report for 2023 indicated that the data center industry contributed $6.3 billion to Maryland's GDP. The bill is in its early stages, with a public hearing on the proposed moratorium scheduled for June 16th.