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Gov. Wes Moore signs executive order regulating data centers in Maryland

Moore explained during a press conference held on Sept. 23 that a bill (SB 397) enacted in 2020 before he was elected as governor gave data centers tax exemptions that would be valid over a span of 10 years.

Gov. Wes Moore is implementing guidelines for companies that want to bring data centers to Maryland, giving five principles that must be followed by companies.

By Ariyana Griffin
Afro
https://www.afro.com/

Maryland Gov. Wes Moore (D) signed an executive order that outlines more regulations for companies interested in constructing data centers in Maryland and provides Marylanders with more agency in the process going forward.

Maryland Gov. Wes Moore signs an executive order implementing guidelines for companies that want to bring data centers to Maryland.

Maryland Gov. Wes Moore signs an executive order implementing guidelines for companies that want to bring data centers to Maryland.Joe Andrucyk/ MDGovPics

Moore explained during a press conference held on Sept. 23 that a bill (SB 397) enacted in 2020 before he was elected as governor gave data centers tax exemptions that would be valid over a span of 10 years. For companies to receive this exemption they would have to create five new jobs and invest $2 million to $5 million in qualified equipment.

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“That approach prioritized data centers and not people. The data centers were calling the shots, the data centers and corporations were the ones writing the rules,” Moore said. “Today, that ends because today I am signing an executive order to make sure that when data centers come to the state of Maryland, that Marylanders always come first.”

He explained that SB 397 allowed companies to use large amounts of energy and water while also adding to air and water pollution without clear guidelines, leaving Marylanders to pick up the cost.

“Giant corporations made promises, and there was no accountability as to whether or not they would keep them or not,” Moore said. “Since Donald Trump returned to office, his administration has moved fast to roll back critical safeguards, giving big tech more room to determine their own destiny. And truthfully, the people are fed up, and so am I.”

The executive order establishes the Maryland Data Center Accountability Task Force. According to the order, this task force will “coordinate the State’s review of data center projects,” in addition to serving as “the State’s single point of contact on data center development.” The task force will also ensure the use of a 5-point framework.

The new executive order’s 5-point framework serves as a set of standards for data centers in the state moving forward, including the following:

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1. Ratepayers and Grid Protection 

Corporations have to pay their own utility and infrastructure costs without putting strain on Maryland families.

“Maryland families should not pay more for utilities because a large corporation is choosing to strain the grid. Data centers have got to pay their own way … or they need to go away,” Moore stated.

2. Economic Benefit for Marylanders

The data centers must provide jobs and opportunities for Marylanders, including partnerships, apprenticeships, labor unions and workforce training.

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3. Community Must Have a Say 

Communities will be made aware of data centers and what is being planned before a decision is made.

“Communities deserve to be heard; they deserve a real say in what happens in their communities,” Moore said. “Our administration will always stand with the people, and the state will not go around a local community’s ‘no.’”

4. Environmental protections. 

The state will begin taking a closer look at water, power and air usage to help protect the state.

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“Maryland’s water and Maryland’s air must be protected,” said Moore. “That means protecting our treasure, the Chesapeake Bay, respecting our precious farmland, and ensuring that beloved communities that have already carried too much of a burden are now not being asked to carry more.”

5. Transparency and Accountability

Companies coming to Maryland must provide transparency for the public through a public dashboard. Corporations will have to submit public proposals that the public can go back and hold them accountable to.

“Marylanders will be able to see what a company has proposed, how much electricity and how much water it expects to use, and how it plans to meet those needs,” the governor said. “They will be able to see what has been asked of the state and whether all of the commitments being made are being kept.”

He expressed that his administration will begin working with the General Assembly immediately to repeal the tax exemption and data center bill, as a way to put Maryland families first.

“I am unapologetic about my desire for economic growth. I want Maryland to be the best place in the world to change the world. I want Maryland to lead on innovation in this era,” Moore said.

Dan Cox, the Republican nominee for Maryland’s 2026 Governor Gubernatorial Election, criticized Gov. Wes Moore for his stance on data centers.

“He believes if he prevails in November, he can then easily greenlight the takeover of Maryland’s farmland. We cannot allow that to happen,” Cox stated in a press release.

“We MUST protect our Maryland cropland. It is a finite resource. Once it’s gone, it’s gone.

Tell him, ‘NO MOORE!’”

Still, Moore is touting his wins and said putting rules in place regarding data centers is beneficial for Marylanders.

The governor said that Maryland now has “over $14 billion in private investment” in the state and has added over “60,000 new businesses” while having a “4.1 percent” unemployment rate. He said that the “job growth rate over the past six months has not only beaten the national average, it has almost doubled it.”

He expressed that economic growth cannot come at the expense or demise of Marylanders.

“Our families come first, and our children come first, not a developer’s timeline and not a corporation’s bottom line,” Moore said. “We will use every tool that we have at our disposal to make sure that no family and no community is left behind – this executive order makes that clear, and it is effective immediately.”

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