Maryland becomes new data center battleground as demand soars
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Illustration: Allie Carl/Axios
The data center wars are heating up in Maryland.
Why it matters: When DMV residents think of data centers — and the opposition to them — they likely think of Northern Virginia, home to the world's biggest collection and much local pushback against their spread.
- But more data center projects are being proposed and built in Maryland as the country rushes to keep up with demands for data storage, streaming and AI use.
The big picture: Maryland sees data centers as a way to bring money in as it wrestles with a $1.4 billion deficit.
- Gov. Wes Moore has made industry-friendly moves such as vetoing a bill calling for a study on their environmental impacts and signing another that makes it easier for them to use backup generators.
Context: Maryland's proximity to the robust fiber connectivity network that helped power NoVa's market makes the state attractive to the industry.
State of play: Several big projects are in discussion — there's a potential site in upper Montgomery County by the Potomac River and one at the Baltimore Peninsula development spearheaded by Under Armour CEO Kevin Plank.
- And many have incited protests from surrounding communities worried about their impacts on land and energy costs, the environment, and noise levels.
Case in point: In Prince George's County, a proposed development on the former Landover Mall site, owned by the Lerner family's company, led to a rally and a petition with over 20,000 signatures, and a possible build-out at the former Six Flags location has some on edge.
- The county paused data center development so it can study the potential impacts.
- Last month, a county task force released a lengthy report calling for the end of by-right development, plus increased regulations and legislative and community oversight.
- Yes, but: Another analysis says data centers could improve the county's $90 million deficit, and create 4,800 jobs.
What they're saying: "Data centers are the largest development issue of our generation" — and are especially an issue in Maryland, says Angie McCarthy, the state conservation advocate at environmental group Nature Forward.
- She adds that Frederick County is "ground zero."
- In October, protesters and supporters there filled a seven-and–a-half-hour public meeting about whether to allow more data center expansion near the under-construction Quantum Frederick site.
Nature Forward is behind the new Maryland Data Center Reform Coalition, which McCarthy stresses isn't anti-data center — just pro-oversight and accountability.
- The coalition was inspired by similar NoVa entities, says McCarthy, and it took a group of Marylanders on a tour of NoVa data centers this year.
The other side: Overall, Maryland developers hear area residents' concerns and want to work with them, says Kelly Schulz, CEO of the Maryland Tech Council, which is behind the Data Center Alliance of Maryland.
- "[Developers] do not want the community to look like a Northern Virginia community as much as we don't want them to."
But too much red tape could mean the state loses prime opportunities to generate revenue, jobs and more tech development, says Schulz.
- "There are billions of dollars that are going to be invested somewhere," she says. "It's the timing that really puts this industry at risk."