A rendering of a proposed data center in Federalsburg

A rendering of what the proposed data center could look like. (Credit: Town of Federalsburg) 

FEDERALSBURG, Md. - One of the first Eastern Shore communities to be faced with the question of data centers has now become the first to ban them. Federalsburg’s Town Council voted on Wednesday to pass an ordinance prohibiting the facilities within its limits.

As WBOC previously reported, Federalsburg began exploring the possibility of bringing a data center to the town in June of this year. A presentation shared by the town said a new Fieldstone Technology Center was “intended to support advanced digital infrastructure uses, including potential data center development.”

The proposal, however, was quickly met with strong backlash from some members of the community. A public information meeting on the proposal was held in July, drawing a large crowd. While some argued the project would bring construction jobs, employment, and a boost to local business, others remained skeptical. Maryland State Senator Johnny Mautz joined those questioning the project.

“We know data centers equal a lot of money,”  Mautz said at the July meeting. “Money is driving all of this. And, you know, there's a lot of bold statements that were made last night, a lot of discussion about energy prices, a lot of discussion about water, a lot of discussion about noise pollution and even health concerns. I think it's really important. It's prudent on the local government to verify those statements. We need to know, the residents need to know." 

Ultimately, Federalsburg approved a three-year moratorium on data centers, with several other Delmarva communities and counties following suit

That moratorium has now escalated into an outright ban. Ordinance 2026-07, recently introduced by the Federalsburg Town Council, changes the town charter's zoning code to prohibit data centers in any zoning district within Federalsburg. That ordinance passed unanimously on Sept. 9 to a roomful of applause. 

The Federalsburg Town Council also discussed an ordinance on Wednesday that would add a ballot question asking residents if they are in favor of or against data centers. That question could possibly appear on this year’s ballot, though the council was unsure of the timing should they pass it in their upcoming meetings. In the meantime, the new data center ban remains in effect.