Montgomery County Council VP shares update on proposals to regulate data centers
News Clip2:43DC News Now·Dickerson, Montgomery County, MD·4/14/2026
Montgomery County, Maryland, is working on legislation to regulate data centers, spurred by a proposed Terra Innovations project in Dickerson. The new rules aim to address resident concerns regarding environmental impact, energy consumption, water usage, and appropriate setbacks. A conditional use hearing for the project occurred 18 months ago, with further review expected soon.
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Gov: Montgomery County Council, MTC Commission, Prince George's County
Montgomery County, Maryland, is actively pursuing new regulations for data centers, prompted by a specific development proposed by Terra Innovations in Dickerson. According to Montgomery County Council Vice President Marilyn Balcombe, the company has been in discussions with property owners for three years and underwent a conditional use hearing 18 months ago. The process for further review of the project is expected to restart within the next month.
Simultaneously, the County Council is drafting legislation to ensure data centers align with the county's vision, emphasizing resident and environmental protection. Proposed amendments to the county code include defining building size, regulating energy consumption, and implementing stricter setbacks from residential zones, schools, and public parks. The legislation will also require data centers to submit plans for backup generators, specifying generator types, and mandating water usage plans that prohibit the use of groundwater. A significant amendment will require data centers to purchase 100% renewable energy.
The initiative comes amid considerable community opposition to data centers, though some residents and officials support the developments due to potential tax revenue. The Maryland and MTC Commission estimated that a midsize data center could generate approximately one billion dollars for Prince George's County, highlighting the fiscal benefits the county aims to leverage while ensuring protective measures are in place.