Governor Wes Moore signed an executive order establishing a new State review process for large data center projects, with local approvals, ratepayer protections, infrastructure impacts, and community engagement built into the framework.
The order applies to data centers that require at least 25 megawatts of power at peak, including expansions that add 25 megawatts, as well as projects that qualify as large load customers under State law. It takes effect when a covered project seeks a State permit, incentive, letter of support, or other discretionary State action.
The order creates the Maryland Data Center Accountability Task Force within the Governor’s Office. It directs the group to review projects against five principles: ratepayer and grid protection, economic benefits for Marylanders, community voice, environmental protections, and transparency and accountability.
For counties, the framework preserves an important distinction between State support and local land-use authority. A project denied a required local approval cannot receive an “Aligned” or “Conditionally Aligned” determination, while projects that do not meet the framework must secure local land-use approvals and demonstrate consistency with the local plan before State review moves forward.
That structure reflects several priorities counties have raised throughout the data center debate: preserving local land-use authority, protecting ratepayers and taxpayers, and keeping host jurisdictions at the center of decisions that affect local infrastructure and communities.
The Task Force must notify the host jurisdiction during its initial review and consider local and public comments before issuing one of three determinations: Aligned, Conditionally Aligned, or Not Aligned. Developers can also enter into a public Statement of Commitments outlining specific obligations and deadlines.
Projects that receive an Aligned or Conditionally Aligned determination can access a coordinated State review pathway and remain eligible for State incentives and other support. Projects that do not meet the framework lose access to that coordinated process, State incentives, agency assistance, and letters of support. However, the order does not create a new legal barrier to permits otherwise available under State law.
The framework also requires developers to address how they will supply new power without increasing costs for other customers and pay for necessary grid upgrades. The review will also consider jobs and wages, local hiring, water use, air emissions, stormwater impacts, community benefits agreements, and whether a project fits local zoning and planning.
The order creates a public Data Center Dashboard showing each project’s location, owner, power and water use, State requests, Task Force determination, commitments, and annual reports. State agencies also may not sign, renew, or extend nondisclosure agreements with data center developers.
The Maryland Department of Planning will also develop guidance for counties and municipalities, including model zoning, suggested community investment levels per megawatt, and model agreement terms. The order directs the Department to develop that guidance with MACo, MML, labor, community groups, and the Office of People’s Counsel.
Governor Moore also announced plans to work with the General Assembly during the 2027 legislative session to repeal the State sales and use tax exemption for qualifying data center equipment.
The order builds on the governor’s earlier data center framework, which called for projects seeking State support to cover their own power costs, hire local workers, and engage local governments and communities.
Stay tuned to Conduit Street for more information.
