What Marylanders need to know about data centers | GUEST COMMENTARY
Maryland faces growing concerns over data centers' environmental and energy impacts, leading to local opposition and a proposed moratorium in Landover. The state's General Assembly recently passed the Utility RELIEF Act to manage energy costs and increase transparency, though critics question its effectiveness. A formal complaint has also been lodged with federal regulators regarding regional energy grid management and its impact on Maryland consumers.
Maryland is facing significant challenges due to the rapid expansion of data centers, with 45 existing facilities and 13 more proposed. Public opposition is high, with 70% of Americans, including Marylanders, opposing local data center construction, particularly noting that 20% of U.S. data centers are in disadvantaged communities. This has led to environmental justice concerns, such as the proposed data center in Landover, which faces a moratorium on permits after a petition garnered over 23,000 signatures. Additionally, the Maryland Piedmont Reliability Project, aimed at powering Northern Virginia's data centers, is encountering resistance from over 100 landowners in Frederick, Carroll, and Baltimore counties who have denied access to surveyors.
A primary concern for residents is the impact of data centers on energy prices, with residential costs in Maryland increasing by 18% in one year. Wholesale electricity costs in data center-dense areas have reportedly surged by 267% over five years. The regional transmission organization PJM Interconnection, serving 13 states, is under scrutiny for mismanagement and a lack of planning for escalating energy demand, which contributed to a jump in power supply costs from $2.2 billion to $14.7 billion in a single year, with data centers accounting for nearly two-thirds of the increase. The Maryland Office of People’s Counsel has filed a complaint with the Federal Energy Regulatory Commission, alleging PJM’s actions could cost Maryland customers an additional $1.6 billion over the next decade. Calls for PJM to modernize or risk states like Pennsylvania and Maryland withdrawing have been voiced.
In response to these issues, the Maryland General Assembly passed the Utility RELIEF Act. This legislation aims to make data centers responsible for their own energy infrastructure costs and increase transparency regarding their development and resource usage. However, critics, including the Food & Water Watch nonprofit, argue that the bill is a "shameless giveaway" to tech and energy companies, asserting that costs could still be passed to ratepayers and that it may not sufficiently mitigate environmental impacts or strain on the energy grid. Adrianne Fantasia, an environmental resilience professional and University of Maryland graduate, emphasizes the need for continued civic engagement to address these ongoing concerns.