Atmosphere Data Centers challenges Elrich’s moratorium on permit review

Atmosphere Data Centers, a developer planning a data center campus in Dickerson, Montgomery County, Maryland, is challenging an executive order by County Executive Marc Elrich that imposed a six-month moratorium on data center permit reviews. The developer has filed an appeal with the county Board of Appeals, arguing that the county's Department of Permitting Services impermissibly altered its zoning interpretation for data centers and misapplied the executive order by halting the review of necessary plans.

Atmosphere contends that the executive order itself is unlawful, asserting that legislative authority rests with the County Council, not the executive. The executive order, signed by Elrich on June 12, explicitly barred the permitting department from accepting or processing new data center applications. This action followed heightened public awareness surrounding the Dickerson project, which involves an amendment filed by Atmosphere to a plan initially approved for Terra Energy, the site owner.

In parallel to the legal challenge, the Montgomery County Council is actively pursuing its own legislative solutions. It is deliberating three proposals, including two separate bills for a temporary moratorium on data center permits—one for six months introduced by Councilmember Evan Glass and another for two years by Councilmember Will Jawando. Additionally, a zoning text amendment is under review, with plans to introduce an overriding amendment that would define and prohibit "hyperscale" data centers countywide. Councilmembers, including President Natali Fani-González, have indicated a preference for a council-enacted moratorium to ensure its legal standing.