At the 2023 MACo Winter Conference, local and state experts discussed the future of data centers in Maryland.
Maryland is strongly positioned to be a winner in the next cycle of technology-driven growth in the Eastern United States, because of its many strengths – a very well-educated workforce, excellent proximity to major population centers, and a wealth of local resources that can drive innovation and excellence in cyber fields, bio technology, and related fields. Among the areas of growth lying right ahead is the expansion of data centers as a hub for storage, processing, and communications capacity for countless users. These facilities require a different physical plant and area framing then an “old school” business opportunity but still could bring dramatic investment and jobs to a hosting community.
Among the tricky components of data center siting are the effects of being a “high energy user” facility: typically a data center needs to not only consume a high level of energy for climate control and system operations but also needs to maintain a backup power supply to ensure system reliability. With today’s technology, that likely means backup generators on-site, typically powered by diesel fuel. The consideration of that energy infrastructure as a new power supply, even when not intended for regular use, makes for a challenging fit amidst State policies and regulations regarding fossil fuel usage. Further, a data center may require substantial water access for “cooling” purposes, requiring yet another challenging permit approval.
Technology infrastructure is a rising component of commercial growth, across our region and beyond. What would it take for Maryland to rival our neighboring states as hosts for data centers and similar facilities – and who’s holding the cards in this high-stakes competition? The 2023 MACo Winter Conference Panel “Cards on the Table: BRinging Data Centers to Maryland” explored the many considerations for these specific commercial uses, that frequently require high-energy volume, backup generation capacity, and more.
Speakers:
- The Honorable Jessica Fitzwater, County Executive, Frederick County
- Kumar Barve, Commissioner, MD Public Service Commission
- Suzanne Dorsey, Deputy Secretary, Maryland Department of Environment
Moderator: The Honorable Steve Hershey, Maryland State Senate
Frederick County Executive opened the session by declaring that Maryland’s need for data centers will only keep growing and that it’s time we figure out a solution in order to meet this increasing need. She also highlighted the need for local flexibility and policy adjustments to bring data centers to counties. She used her county’s experience as a prime example.
Public Service Commission (PSC) Commissioner Kumar Bravo described the role of the PSC in data center engagement and the Commission’s considerations in determining whether or not to allow such a facility to go forward in Maryland. He said, “if we are going to encourage this industry to come to Maryland, there’s a lot of work we need to do around where the supporting energy comes from.”
Maryland Department of the Environment Deputy Secretary Suzanne Dorsey closed out the panel by explaining the Department’s permitting process. She stressed that the first step is looking at local zoning and applauded Frederick County’s work to do so. She pointed to the role brownfields and otherwise unusable land can play in a future data center industry in Maryland.
The Deputy Secretary also highlighted several areas of concern for the Department, like air emissions and water usage — both of which continue to be a challenge for data center operations.
More about MACo’s Winter Conference:
