Anne Arundel County approves moratorium on new data centers through 2028

New data center development in Anne Arundel County is on hold while county leaders decide how to regulate the rapidly growing industry.

The Anne Arundel County Council voted 7-0 Monday night to approve an amended version of Bill 63-26, establishing a temporary moratorium on new data center development.

The moratorium will run until Jan. 31, 2028, or until the county adopts comprehensive data center legislation, whichever comes first.

The measure differs significantly from the bill as originally introduced. Council members initially considered banning new privately operated data centers in the county, then unanimously amended the proposal in September to replace the ban with a temporary moratorium.

Projects already in the development process will generally be allowed to continue. The amended measure also includes future phases of existing data centers on adjacent or adjoining properties.

During the moratorium, the county will establish a work group to study data center development and recommend permanent regulations to the county executive and County Council.

The group is expected to consider energy and water use, utility infrastructure, noise, air quality, environmental impacts, and economic development.

The debate comes as data centers continue to expand in Anne Arundel County. Microsoft, which is developing a data center campus at Annapolis Junction Business Park, previously testified against the original ban. The company said it supported developing regulations and creating a work group, but wanted existing campuses to continue development.

The legislation also calls for repealing a personal property tax assessment reduction for qualified data storage centers.

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