Data Center Showdowns Heat Up: State House and Communities Clash Over Future

By Capital News Service, Maryland Matters

April 20, 2026

Taylor Frazier McCollum had not previously engaged in local politics until she discovered plans for a data center at the former Landover Mall location. Motivated by her concerns, she initiated a petition against the proposal, which garnered over 20,000 signatures within just two weeks on Instagram.

Living less than a mile from the proposed site in Prince George’s County, Frazier McCollum expressed her concerns about the potential noise, light pollution, and environmental effects, describing them as “war weapons.”

“We already face numerous pollution issues within the Beltway,” Frazier McCollum stated. “It would be unfortunate to add even more challenges to our community.”

Throughout Maryland, activists and proponents of data centers are clashing over the locations and construction methods of new facilities. Concurrently, lawmakers in the State House are discussing regulations and the potential impact on the electric grid. Democratic leaders, including Governor Wes Moore, are advocating for more oversight.

“I’m not opposed to data centers being built in Maryland, but we need to ensure proper safeguards are in place,” stated Del. Julie Palakovich Carr (D-Montgomery).

This legislative session saw the introduction of at least 17 bills related to data centers, with only two successfully passing.

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One significant piece of legislation, the Utility RELIEF Act, aims to hold utilities and data centers accountable while enhancing the reliability of the state’s energy system and promoting clean energy. House Speaker Joseline Peña-Melnyk, who introduced the bill, emphasized, “Electric demand is rapidly increasing, partly due to the growth of data centers and the digital economy.”

The bill passed on the last day of the legislative session and is expected to receive the governor’s approval.

Lawmakers Seek a Clear Path for Data Centers

Governor Moore has indicated his support for data center projects that employ local workers and manage their own energy needs.

“Data centers can no longer dictate the rules they follow,” Moore remarked during a recent press conference regarding the Utility RELIEF Act. “Under this new law, data centers will be responsible for funding the grid upgrades they require, not the residents of Maryland.”

The legislation also broadens the definition of “large load customer,” which applies to entities with high energy demands and imposes stricter regulations on them.

Additionally, the bill encourages data centers to invest in new clean energy solutions, participate in energy efficiency programs, and provide protections for ratepayers, as highlighted by Mariah Davis from the Marylanders for Data Center Reform Coalition during a recent webinar.

Some lawmakers and the coalition also backed other bills aimed at further regulating data centers, including a proposal by Palakovich Carr to eliminate tax exemptions for these facilities. Del. Lorig Charkoudian (D-Montgomery) introduced legislation that would allow “responsible” data centers that generate their own power to be prioritized in construction.

Unfortunately, both of these bills did not pass.

Charkoudian believes there is a “real path” to harness the benefits of data centers without negatively impacting communities, the environment, or ratepayers.

‘We’re Prepared for a Fight’

Supporters of data centers emphasize the economic advantages they bring.

Kelly Schulz, CEO of the Maryland Tech Council, noted that data centers contribute to job creation, local tax revenues, innovation, and the advancement of a technology-driven society.

The council has been actively promoting data centers through its coalition, the Data Center Alliance of Maryland.

Schulz stated that the council aims to “educate the public about the realities of the data center industry” and highlight the positive outcomes associated with these facilities.

However, community activist Elizabeth Bauer from Frederick County dismissed the council’s claim that property values near data centers increase, calling it “hogwash.”

“I can’t fathom how having a data center nearby would boost property values,” she remarked.

Bauer urged state legislators to consider more than just revenue generation. “It’s all about the money, but they overlook the associated costs,” she added.

In January, Frederick County enacted an ordinance permitting data centers to be constructed on rural legacy and preservation lands. Bauer and the activist group Envision organized a petition to allow citizens to vote on this ordinance, which has collected over 20,000 signatures according to Envision’s website.

“Our farmers are facing numerous challenges from the state of Maryland,” Bauer stated.

Schulz, who is part of a work group for an ongoing data center project in Frederick County, claimed the local government stands to benefit significantly.

The county “is projected to receive over $200 million annually in tax revenue from that single project,” she noted, which represents about 40% of the county’s overall budget.

Bauer anticipates a legal confrontation with Frederick County over the referendum.

“We’re ready for a fight,” she declared.

Meanwhile, Frazier McCollum, the activist from Prince George’s County, emphasized the importance of the 23,000 signatures on her petition.

“We plan to leverage our voting power to support candidates who align with our goal of imposing a moratorium or ban on data centers statewide,” she asserted.

— Capital News Service reporter Sam Gauntt contributed to this report. Capital News Service is a student-run reporting service operated by the University of Maryland’s Philip Merrill College of Journalism. Stories are available on the CNS site and may be reprinted with proper credit to Capital News Service and the student journalists involved.