When data centers come knocking, counties should have a ‘wish list,’ officials say -
Maryland energy officials are advising counties with data center moratoriums to create a 'wish list' for developers, securing community investments amidst growing data center demand. This guidance comes as the PJM electric grid faces significant pressure, with potential disruptions in Maryland, and after Amazon Web Services pulled out of a Calvert County project due to voter backlash. PJM has proposed new regulations to FERC for prioritizing power cuts to data centers during emergencies.
The Maryland Energy Administration (MEA), under Gov. Wes Moore, is urging Maryland counties with data center moratoriums to develop a "wish list" of community investments they expect from developers. Ian Ullman, deputy director of the MEA, emphasized that data centers are a permanent fixture, and counties should leverage moratoriums to negotiate benefits such as new schools, road upgrades, and community centers, rather than simply blocking development. Constellation Energy, represented by senior vice president Mason Emnett, echoed this sentiment, encouraging engagement and collaboration.
This advice follows a significant event in Calvert County, where data center developer Amazon Web Services recently withdrew from a planned project at the Calvert Cliffs nuclear plant. This withdrawal occurred after intense voter backlash against data centers led to the unseating of three county council members. Calvert County is now contemplating its own moratorium.
Compounding the issue is the strain on the PJM Interconnection, the electric grid serving Maryland and several other states. Jason Stanek, executive director of governmental services at PJM, warned of potential grid disruptions in Maryland as early as next year, driven by immense data center demand, with 93% of this growth projected outside Maryland in states like Virginia, Ohio, Pennsylvania, and Illinois. Maryland currently lacks sufficient high-voltage transmission lines to cope with this demand. PJM has proposed new procedures to the Federal Energy Regulatory Commission (FERC) that would prioritize shutting off new "Large Load" customers, including data centers without their own power generation, during grid emergencies, ahead of residential consumers. Maryland People's Counsel David Lapp advocates for policies to shield residential customers from bearing the costs of energy infrastructure buildout driven by data centers.