New MD energy law intertwines with data center boom
Maryland's new Utility RELIEF Act mandates data centers to fund their electric grid upgrades and register with the Public Service Commission, preventing costs from burdening ratepayers. This statewide legislation aims to bring transparency and accountability to data center energy consumption. Separately, Harford County has enacted a ban on data centers.
Maryland's 2026 legislative session saw the passage of the Utility RELIEF (Reducing Energy Load Inflation for Everyday Families) Act, designed to offer financial relief to residents and businesses. A key provision of this new law addresses the booming data center industry, requiring these facilities to pay for electric grid infrastructure upgrades to mitigate their impact on the state's already strained power grid and prevent increased costs for general ratepayers.
Maryland Tech Council CEO Kelly Schulz highlighted that the law makes Maryland one of the first states to mandate large load customers, like data centers, fund their grid connection upgrades and register with the Public Service Commission. Sen. Katie Fry Hester (D-9), who authored the data center amendment, explained that the registry will provide policymakers and utilities with a clearer understanding of future electricity demand, leading to smarter investments and better ratepayer protection.
This legislative action is part of a broader national trend to ensure data centers cover their fair share of infrastructure costs. While the new state law introduces significant regulations, it follows a recent move by Harford County, Maryland, where County Executive Bob Cassilly signed a bill banning data centers, making it the first county in the state to do so. The new state law also seeks to attract projects that strengthen grid reliability, support affordability, and create value for Maryland residents by encouraging clean energy capacity.
Concerns remain regarding the execution of the law and the definition of how data centers will 'bring their own power.' Mike McHale of IBEW Local Union 24 noted that the legislation provides an opportunity for job creation in sectors like offshore wind and nuclear, emphasizing that proper implementation is crucial for the state's future. Governor Wes Moore's spokesperson, Rhyan Lake, affirmed the administration's commitment to transparency and accountability for data center costs, including advocating for reforms at the regional grid operator PJM.