Montgomery County passes 18-month pause on data center development

The Montgomery County Council has unanimously voted to enact an 18-month moratorium on new data center development within the county. This decision, described as a compromise by Council President Natali Fani-Gonzalez, aims to provide the county with time to establish a comprehensive strategy for managing future hyper-scale data centers. Councilmember Evan Glass emphasized that the pause is intended to answer community questions about the impact on the Potomac River's water supply, utility rates, and the broader community.

The measure comes amidst growing vocal opposition from Maryland residents regarding data center development, with concerns frequently cited about environmental impact and strain on the energy grid, similar to issues observed in Northern Virginia. Councilmember Will Jawando noted that while data centers previously received tax incentives, the focus is now on ensuring adequate public benefit due to their high energy consumption. This moratorium follows similar actions in neighboring Prince George's County, which passed a two-year pause, and Frederick County, where the county executive ordered a six-month halt. The State of Maryland is also conducting a comprehensive study on data center impacts, with a report expected in September.