Maryland sets new rules for large data centers as Moore calls for ending tax exemption

ANNAPOLIS — Governor Wes Moore is implementing new rules for large data centers in Maryland while also pushing to end the industry's tax break.

The executive order creates a Maryland Data Center Task Force aimed at protecting ratepayers, communities and the environment while increasing transparency around data center development.

The task force will review projects based on five principles: ratepayer and grid protection, economic benefits for Marylanders, community input, environmental protections, and transparency and accountability.

The new process applies to data centers using 25 megawatts or more once they seek state action, including a permit, incentive or letter of support.

The task force will review those projects, support local governments and work with neighboring states. Each project will receive a public determination of Aligned, Conditionally Aligned or Not Aligned.

The order also creates a public Data Center Dashboard that will be updated monthly. It will include information such as a project's location, developer, parent company, projected power demand and water use, along with state actions requested and decisions made.

Moore also says he will work with the General Assembly during the upcoming legislative session to repeal the Data Center Sales and Use Tax Exemption enacted in 2020.

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