Montgomery County Council advances data center moratorium and zoning definition

Montgomery County committees have advanced an 18-month data center moratorium and approved a zoning text amendment (ZTA) to define data centers and temporarily prohibit their development across the county. These measures will go before the full County Council for a vote on Tuesday, marking a significant step towards establishing comprehensive regulations for the industry.

The ZTA, approved by the Planning Housing and Parks (PHP) Committee, proposes a definition for "large-load data centers" as facilities with an aggregate monthly electricity demand of at least 25 megawatts. It also currently prohibits such facilities from being located anywhere within the county. Council President Natali Fani-González highlighted the council's commitment to ensuring proper setbacks and environmental protections for communities.

Concurrently, the Economic Development Committee advanced an 18-month moratorium on data center development. This compromise timeline was chosen to allow the county sufficient time to develop robust regulatory standards in coordination with the state. Councilmember Andrew Friedson emphasized that this period is an "opportunity to do the work" and not merely to halt progress, as extensive research and discussions are already underway.

These actions are a response to increased public awareness and calls for more stringent development standards, particularly following a plan to build a large data center campus in Dickerson. This project, initially owned by Terra Energy, has been taken over by California-based Atmosphere Data Centers, which is seeking approval for a five-building, 360-megawatt campus. The council plans to leverage forthcoming county and state studies on data center impacts to guide future regulations, acknowledging that critical issues like energy and water use require broader state-level coordination.