FREDERICK, Md. — Maryland Governor Wes Moore says he is committed to bringing data centers to the state.
The Moore administration has introduced legislation that would remove a major hurdle for Frederick County developers trying to get controversial projects back on track.
In October, state energy regulators stalled part of data center developer Quantum Loophole’s plans to build a gigawatt complex on 2,100 acres in southern Frederick County. Maryland’s Public Service Commission has denied an exemption from environmental regulations to install 168 backup generators. Combined, they can generate enough electricity to run more than 250,000 homes, comparable in size to large power plants that emit some pollutants.
Developers argue that the generators are intended for emergency use only and will not have even a fraction of the same environmental impact as a 500-megawatt power plant.
The PSC’s rejection forced one of Quantum Loophole’s first major data center tenants to pull out of the deal, but it didn’t satisfy Moore. The governor spoke about data center priorities at a statewide meeting of county leaders in December.
“That means making Maryland a great place for companies to invest in the data centers and infrastructure that powers the technology economy,” Moore said, to applause from the group.
The Moore administration has proposed a law amendment that would exempt data center backup power from PSC regulations by declaring data centers critical infrastructure, such as hospitals and fire departments.
Maryland Tech Council CEO Kelly Schultz, who also lives in Frederick County, said data centers are a good business without the development costs of other types.
“When you compare the impact that a data center has on a community to a whole new residential area that needs to be served through the community and the county, it doesn’t even compare,” Schultz said.
Skeptical opponents appeared at a meeting of Frederick County’s special work group on data centers, which is expected to release zoning recommendations soon.
“We need to look at regulation, not what the PR departments of data center companies say,” Sugarloaf Alliance president and protectionist Steve Black told a Jan. 25 working group. “We need regulations that hold them accountable” down to the level of specific actions.”
Chelsea Kadish, chief of staff to County Executive Jessica Fitzwater, is leading the work group.
“My concern is that we will always be compared to Loudoun County,” Kadish told workgroup members in January. We don’t want to be them. ”
In a previous presentation, Quantum Loophole committed to developing a master plan to prevent the data center sprawl seen in Loudoun County. But the company already needs exemptions from electricity regulations in some states before it can begin operations.
Moore’s bill to remove hurdles has not yet been voted on by lawmakers.
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