Background
Proposals to establish large data centers that support AI technology have recently become controversial in many jurisdictions in the country, including Montgomery County, because of their potential impact on the environment, utility rates, and local infrastructure, among other concerns.
Montgomery County Executive Marc Elrich signed an executive order on June 12, 2026, establishing a six-month moratorium on new data center permits. The pause prevents the Department of Permitting Services from accepting or processing applications for new facilities, including Atmosphere Data Centers’ planned project at the former Dickerson power plant. The action is intended to give the County Council time to draft comprehensive zoning and environmental regulations regarding energy use, water consumption, and noise. Atmosphere Data Centers has appealed this moratorium, arguing that such a moratorium must be imposed by legislation rather than by Executive Order.
What is in play/being considered by the Council/when
- Expedited Bill 19-26 to establish a 6-month moratorium
- Hearing held June 16.
- ECON Committee will consider bill on July 22
- Expedited Bill 24-26 to establish a 2-year moratorium
- Hearing held June 16. There was strong support from the public for the 2-year data center moratorium.
- ECON Committee will consider bill on July 22
- ZTA26-01 to establish standards for data centers: PHP Committee work session July 22
In Favor of Data Centers with Near-Term Regulation
Maryland Tech Council: “Maryland Tech Council (MTC) favors ZTA 26-01. MTC is Maryland’s largest technology and life sciences trade association, representing more than 850 member organizations. It supports ZTA 26-01 because it provides a clearer and more predictable framework for data center development in Montgomery County, while incorporating reasonable standards that reflect best practices for responsible development”
Other supporters of data centers in Montgomery County, MD (AI summary). Commercial developers, industry advocacy groups, and certain local political figures who emphasize the economic benefits and tech infrastructure needs of the county.
Key proponents include:
- Developers & Landowners: California-based Atmosphere Data Centers and Florida-based Terra Energy are actively pursuing a five-building data center campus at the site of a former coal-fired power plant in Dickerson.
- Industry Coalitions: The Data Center Coalition and the NAIOP Commercial Real Estate Association advocate for the industry. They highlight that data centers contribute significantly to the local economy, create jobs, and generate tax revenues.
- Local Officials: Councilmember Andrew Friedson has argued against proposed moratoriums, maintaining that data center development should be allowed to proceed.
In Favor of a Moratorium with Potential for More Refined Regulation
Climate Coalition Montgomery County: “Our position is that the county has insufficient information to enact fully informed zoning standards and regulations for the new data center use at this time. Permitting of data centers should be paused, allowing the county time to gather this information.”
Maryland Countryside Alliance: (AI Summary) MCA “…opposes the unregulated sprawl of data centers in the county. They advocate for strict zoning regulations and are actively pushing for a two-year moratorium on all data center permits to properly study the environmental, noise, and utility rate impacts…”
MCCF: “Montgomery County Civic Federation supports a meaningful pause in data center permitting and urges the Council to enact Expedited Bill 24-26, establishing a two-year moratorium.
“This is not a position against technology or economic development. Data centers support essential digital services and—with appropriate regulations and tax structure— they may provide tax revenue and opportunities to reuse previously developed industrial land. But the newest hyperscale and artificial-intelligence data centers are not ordinary commercial buildings. They are large industrial facilities whose demands for electricity, water, cooling, backup power, and supporting infrastructure can affect not only the immediate community but residents and ratepayers throughout Montgomery County.
“The proposed data-center campus at the former Dickerson station makes these concerns especially urgent. Publicly available materials describe a campus with a potential electrical capacity of approximately 360 megawatts, together with substations, backup generators, battery storage, warehouses, and cooling infrastructure near the Potomac River, Agricultural Reserve, and C&O Canal. A project of this scale could contribute to regional transmission and generation needs, utility costs, emergency-response demands, environmental impacts, and infrastructure decisions affecting residents far beyond the site itself. It could also establish a precedent for how data centers are reviewed elsewhere in Montgomery County. Yet the County still lacks publicly available, independently reviewed answers to fundamental questions. Full testimony here.
Parkwood Residents Association 