Guest Commentary: Baltimore urged to lift data center moratorium for tax relief
Ross Marchand argues that Baltimore City should reverse its data center moratorium and greenlight projects, particularly in the Baltimore Peninsula area, to generate tax revenue and lower property taxes. He highlights the economic benefits and refutes common misconceptions about data center energy and water consumption. The article suggests that data centers could revitalize underutilized industrial areas with existing infrastructure.
Ross Marchand, Executive Director of the Taxpayers Protection Alliance, advocates for Baltimore City to embrace data center development as a strategy to significantly lower its high property taxes. Citing the successful model of Loudoun County, Virginia, which derived 38% of its revenue from data centers in 2025, Marchand contends that Baltimore should lift its current data center moratorium and approve projects within the city.
Marchand specifically identifies the Baltimore Peninsula, formerly Port Covington, as an ideal location for data centers. He notes its historical connection to power generation sites and proximity to major transmission lines, which would facilitate rapid grid interconnects. The article also suggests that developers could implement behind-the-meter hybrid energy models and utilize the Patapsco River for closed-loop cooling, subject to environmental permitting.
Addressing common criticisms, Marchand refutes claims that data centers are major consumers of water and electricity. He cites analyses by the Taxpayers Protection Alliance and AI researcher Andy Masley, indicating that data centers accounted for only 0.06% of Maryland's water consumption and 2.5% of its electricity consumption in 2025. He projects that by 2030, AI in data centers will use a fraction of America's freshwater compared to other industries like golf courses or steel production.
Marchand concludes by urging Baltimore's leadership to dismiss what he calls "misinformation" about data centers and instead champion their development as a proven method for bolstering the local tax base and providing property tax relief to residents.