Potomac data center would sap more power than Baltimore. It says that’s good for the grid.

TeraWulf, a data center developer, proposes a massive "Chesapeake Data Campus" in Charles County, Maryland, along the Potomac River. This complex, projected to consume more energy than Baltimore, plans to power its operations by acquiring and converting the former Morgantown Generating Station, a retired coal plant, to natural gas. TeraWulf claims the project, which includes 500 megawatts of battery storage, will benefit the region's power grid, create jobs, and avoid drawing water from the Potomac. However, the project is met with significant skepticism from energy experts and federal regulators. Critics like Jon Gordon of Advanced Energy United and Cassady Craighill of GridLab question the reliance on natural gas due to turbine wait-times and price volatility, and express concerns about insufficient battery backup and potential grid strain. PJM Interconnection, the regional grid operator, has warned about increasing data center demand, and its Independent Market Monitor, along with a state-appointed ratepayer advocate, has raised concerns in Federal Energy Regulatory Commission (FERC) filings about the project's impact on energy prices and reliability. TeraWulf's attorneys contend their data center plans are separate from FERC's review of the plant acquisition. Maryland Governor Wes Moore's administration has indicated conditional support, with Secretary of the Environment Serena McIlwain offering to expedite permits and assist with natural gas right-of-ways. This support is tied to the project meeting state climate goals, including the use of clean energy, contributions to infrastructure upgrades, and becoming a "net-positive" energy contributor, aligning with new state legislation. Despite this, Tyson Slocum of Public Citizen remains opposed, advocating for GenOn, the current plant owner, to handle coal pollution remediation instead of TeraWulf's plans.