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Lawmakers push for data center reform as energy bills are already seeing an impact

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ANNAPOLIS, Md. — Maryland lawmakers are working to regulate the rapid growth of data centers in the state as residents are already seeing the impact on their energy bills.

Several pieces of legislation under consideration would determine where data centers can be built and encourage them to generate their own energy.

David Lapp, of the Office of the People's Counsel, warned that costs could grow significantly without action.

Lawmakers push for data center reform as energy bills are already up

Lawmakers push for data center reform as energy bills are already up

"We're just starting to see the cost. If we don't fix the problems now, customers are going to get hit with even more massive costs in the future," Lapp said.

Lawmakers don't just want data centers built wherever space is available. One proposal would require local governments to submit a plan outlining where data centers can be constructed.

"We want every county to be proactive in deciding whether they want data centers, where they want data centers," Delegate Sheila Ruth said.

Ruth, a Baltimore County Democrat, and other lawmakers are not opposed to data centers coming into their communities. Many welcome the jobs and tax revenue they bring.

"A lot of people who are getting upset with data centers think that there's no jobs, but as a former county commissioner, I understand that property taxes [are] the fuel which allows us to pay for education, public safety, public works," Senator Mike McKay said.

McKay, a Republican representing Garrett, Allegany and Washington counties, is sponsoring legislation that would make it easier for data centers to generate their own energy without raising costs for ratepayers.

"This bill there's no new transmission lines. There's no rate increase to the households because they're not on the actual grid," McKay said.

Senator Katie Fry Hester, a Democrat representing Howard and Montgomery counties, said lawmakers want to be selective about which data centers come to Maryland.

"I think I'm envisioning a really long line of data centers wanting to come to Maryland, and what we want is the, the really good ones, the ones that can be flexible and responsible and good partners in the community we want those to come to the front of the line," Fry Hester said.

Lawmakers say the time is now to establish control over data center growth before more facilities are built across the state.

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