In a significant move for the region, the Montgomery County Council has voted unanimously to impose an 18-month moratorium on the construction of new data centers. This decision follows the earlier initiative by Montgomery County Executive Marc Elrich, who established a six-month moratorium via an executive order in June.
Council member Evan Glass expressed support for the formation of a task force to delve into the complexities of this issue. Although he remains convinced such a task force should have been established at the county level, he emphasized the importance of making informed decisions. “We have to get this right, and what we’re doing today is one step towards that,” he remarked before casting his vote in favor of the moratorium.
Meanwhile, Council member Will Jawando, who advocated for a more extended, two-year moratorium, assured his colleagues that the council would remain proactive during the next 18 months. “We’re not just going to be twiddling our thumbs,” he stated. He outlined plans to address various pressing concerns, including noise pollution, water consumption, and the ecological impact on the Potomac River. He particularly underscored his commitment to scrutinizing local tax rates related to data centers.
Additionally, the council approved a zoning text amendment that establishes a clear definition of what qualifies as a data center. “The fact that we had existing data centers in Montgomery County without a proper definition in our code was a significant issue,” noted council member Dawn Luedtke. She stressed the importance of recognizing the current data centers, emphasizing that any strategies implemented would not jeopardize their operations.
In her remarks upon the moratorium’s passage, Council President Natali Fani-González highlighted the necessity of gathering more information, particularly from state agencies. She referenced an ongoing study being conducted by the Department of the Environment, the Maryland Energy Administration, and the University of Maryland School of Business. The findings are expected to be submitted to Gov. Wes Moore and the General Assembly by September 1.
The approval of this moratorium has drawn criticism from some in the business community. Chuck McBride, CEO of Atmosphere, expressed disappointment in a statement. Atmosphere has been navigating the county’s planning procedures to establish a data center in Dickerson, located within the county’s agricultural reserve. This land was previously utilized by a coal-fired power plant that was decommissioned in 2020.
Chris Baughman, who serves as the chief platform and sustainability officer for Atmosphere, conveyed the company’s concerns regarding the council’s recent actions. “It does not look like we can proceed at this moment,” he said. Baughman mentioned that the company is now taking time to carefully assess the situation and explore potential next steps, although he acknowledged that these options remain uncertain.
Addressing the implications of the moratorium, Baughman noted the significant delays caused by such decisions, particularly concerning the long lead times required for securing necessary power infrastructure and equipment. He pointed out that the wait for power transformers can range from 12 to 36 months, demonstrating the real and immediate impacts of these regulatory changes.
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