ANNAPOLIS, Md. - Maryland Gov. Wes Moore has signed an executive order establishing new statewide oversight for large data center developments and says he will push lawmakers to repeal a tax exemption previously created to attract the industry.
According to the Governor’s Office, the executive order establishes a framework for reviewing proposed data centers that require 25 megawatts of power or more once a project seeks state action, including a permit, incentive, or letter of support.
Under the order, those projects will go through a standardized state review based on five principles: protecting ratepayers and the electric grid, providing economic benefits for Marylanders, incorporating community input, protecting the environment, and ensuring transparency and accountability.
The order also creates the Maryland Data Center Task Force within the Governor’s Office. According to Moore’s office, the task force will review qualifying projects, publish review requirements, maintain a public database of data center developments, and provide support to local governments.
Representatives from the Maryland Energy Administration and the state departments of Commerce, Labor, Environment, Natural Resources, Agriculture and Planning will serve on the task force.
Each project reviewed by the task force will receive a public determination of “Aligned,” “Conditionally Aligned,” or “Not Aligned.”
The executive order also calls for the creation of a public Data Center Dashboard that will be updated monthly. The dashboard will include the location and legislative districts of projects under review, developers and parent companies, disclosed anchor tenants, and projected electricity demand and water use.
It will also track state actions requested by developers, the status of those requests, the task force’s determination and reasoning, commitments made by developers and annual reports.
Moore said the framework is intended to prevent data center development from increasing costs for Maryland ratepayers while providing greater environmental and community oversight.
“By signing this executive order, we are establishing clear safeguards to ensure Marylanders do not foot the bill, our people benefit, community voices are heard, and our environment is protected — all while centering transparency and accountability throughout the process,” Moore said.
The move follows other state action concerning the industry's energy demands. In May, Moore signed legislation requiring data centers to cover costs associated with their energy infrastructure upgrades rather than passing those costs on to other ratepayers, according to the Governor's Office.
Alongside the executive order, Moore announced he plans to work with the Maryland General Assembly during its upcoming legislative session to repeal the state's Data Center Sales and Use Tax Exemption. The exemption was enacted in 2020.
