Maryland Gov. Wes Moore creates data center review task force, wants to end tax exemption
Maryland Governor Wes Moore signed an executive order establishing a Data Center Accountability Task Force to evaluate new projects based on energy demand, community impact, and local hiring. He is also advocating for the state legislature to repeal the Data Center Sales and Use Tax Exemption, a move that would end tax incentives for data centers. These actions reflect a shift in the governor's stance on data center regulation amid growing local moratoriums across Maryland.
Maryland Governor Wes Moore signed an executive order on Wednesday to create the Maryland Data Center Accountability Task Force. This task force will establish guidelines for data center projects seeking state support, focusing on energy demand, community impact, and local union hiring. Governor Moore justified this move by citing a lack of federal regulation from the previous administration and a need to protect Maryland residents from the disproportionate impact of rapidly growing hyperscale data centers.
The new task force will evaluate projects based on five principles: ratepayer and grid protection, economic benefits, community voice, environmental protections, and transparency. Projects deemed "Not Aligned" will face delayed regulatory review and lose state advocacy. Additionally, the executive order mandates a public dashboard for proposed projects, detailing their electricity and water usage, and prohibits state employees from signing non-disclosure agreements with developers. Governor Moore has also committed to working with the General Assembly to repeal the Data Center Sales and Use Tax Exemption, which was enacted in 2020 and provides tax breaks for data centers meeting certain investment and job creation thresholds.
These state-level actions come amidst a wave of local data center moratoriums across Maryland, with 13 jurisdictions having enacted temporary pauses and Harford County approving an outright ban. Baltimore County recently extended its data center moratorium through 2027. Governor Moore has indicated his support for a potential statewide moratorium if it were to pass the Maryland General Assembly, marking an evolution in his policy stance. Despite previously backing legislation to ease restrictions on data center diesel generators and vetoing a bill requiring a state impact study, he now states he has "seen enough" regarding data center growth.
The Chesapeake Climate Action Network (CCAN), a regional advocacy group, called the executive order a "positive step" but criticized its vague principles and lack of explicit clean energy requirements. The group continues to advocate for a statewide data center moratorium. The state previously passed the Utility RELIEF Act, which created a voluntary clean-capacity rating program, offering interconnection priority to data centers that provide 80-100% of their peak demand from clean energy.