Full Breakdown
Maryland Gov. Wes Moore Issues Executive Order to Regulate Large Data Centers
By Drooid · · How we work
New Statewide Review Framework
On September 23 2026, Governor Wes Moore signed an executive order creating a Maryland Data Center Task Force within the governor’s office. The task force reviews any data-center project that requires 25 megawatts (MW) or more of power when the developer seeks a state permit, incentive, or letter of support. Projects are evaluated against five principles—ratepayer and grid protection, economic benefits for Marylanders, community voice, environmental protections, and transparency and accountability. The order establishes a public “Data Center Dashboard” that will be updated at least monthly with each project’s location, developer, projected electricity and water use, and the state’s determination: Aligned, Conditionally Aligned, or Not Aligned.
Why the Order Was Introduced
The rapid expansion of artificial-intelligence applications since 2022 has spurred a boom in data-center construction nationwide. Maryland’s 2020 Data Center Sales and Use Tax Exemption—intended to attract investment—has been criticized for costing the state more than $22 million in lost sales tax revenue. State leaders also cite federal rollbacks of environmental and safety regulations that have shifted utility costs onto ordinary customers. Local governments have already acted: Harford County banned data centers (June 10), Baltimore County extended its moratorium through December 31 2027, and Frederick County paused new applications until July 1 2027. The executive order seeks a uniform statewide process while preserving those local restrictions.
Key Provisions and Metrics
- Threshold: Projects of >= 25 MW (typical centers use 10–50 MW; hyperscale facilities can demand 100–500 MW).
- Tax Policy: Moore announced plans to work with the General Assembly to repeal the 2020 tax exemption.
- Infrastructure Costs: The review examines whether developers will fund new power generation, transmission, and water infrastructure rather than shifting costs to ratepayers.
- Economic Review: The task force assesses projected job creation, wage levels, local hiring, apprenticeship programs, and contributions to Maryland’s technology sector.
- Public Dashboard: Monthly updates will list each project’s developer, parent company, anchor tenant (if disclosed), and projected utility demands.
Official Statements & Responses
Governor Moore framed the order as a safeguard for “ratepayers, communities and the environment,” emphasizing that large facilities must “pay their own way.” The Maryland Energy Administration and the departments of Commerce, Labor, Environment, Natural Resources, Agriculture, and Planning will staff the task force. Utility companies—including Baltimore Gas and Electric, Delmarva Power, and Pepco—supported the principle that new large energy users should cover the infrastructure needed to serve them, noting that otherwise costs “are ultimately borne by customers.”
Criticism & Opposition
Republican challenger Dan Cox called the order a “political stunt” and alleged a large campaign donation from a data-center owner. The Maryland Freedom Caucus argued the order stops short of a moratorium and merely “helps favored projects move forward.” Green Party candidate Andy Ellis described the measure as a “win for data centers” and urged a statewide ban, calling the task force “lip-service.” Political analyst John Dedie warned that the governor’s shifting stance could create uncertainty for both communities and developers.
Conflicting Reports & Gaps
State officials claim the 2020 tax exemption has cost Maryland over $22 million in lost revenue, but no independent audit has been released. Estimates of job creation and future tax revenue vary among local officials, leaving the true economic impact unclear.