Maryland Governor Established New Data Center Rules
The executive order mandates strict reviews for facilities over 25 megawatts to address energy and community impacts.
Updated on Sept. 23, 2026 in Data Centers
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Should your state government implement stricter regulatory oversight for new large-scale data center projects?
Governor Wes Moore signed an executive order requiring new, centralized oversight for large-scale data center developments in Maryland. The directive applies to any project seeking state permits or incentives that meets or exceeds a 25-megawatt capacity threshold.
Why it matters
The order seeks to balance the rapid expansion of digital infrastructure with state-level priorities regarding electricity ratepayer stability, environmental safeguards, and local community representation. It shifts the burden of proof for large developments toward demonstrating net economic and public benefits.
The order mandates a single public record and consolidated review process for all data center projects requiring state-level permits or tax support that reach the 25-megawatt capacity threshold. This replaces a fragmented permitting environment with a centralized oversight mechanism.
The players
Wes Moore
The Governor of Maryland responsible for setting state administrative policy and industrial development oversight.
Maryland Data Center Task Force
A newly established regulatory body tasked with managing the review process and public reporting for large-scale server farm proposals.
The details
The directive creates the Maryland Data Center Task Force, a regulatory body charged with evaluating facility proposals based on environmental impact, economic gain, and protection for regional electricity ratepayers. By consolidating permits and financial data into a public Data Center Dashboard, the state aims to increase transparency for developments that previously operated under disparate local and state approvals. These rules apply to any new facility seeking state-backed incentives or formal letters of support.
Timeline
2020: The Data Center Sales and Use Tax Exemption was originally enacted.
September 23, 2026: Governor Wes Moore signed the executive order in Annapolis.
The Tech Race
The order signals a policy pivot by explicitly supporting the repeal of the 2020 Data Center Sales and Use Tax Exemption, marking a transition from state-sponsored incentives to rigorous oversight. This move places Maryland at the center of a growing national debate over how states balance critical digital infrastructure needs against grid reliability and tax incentives.
Residents and local stakeholders will gain access to a unified Data Center Dashboard tracking large-scale project proposals and their projected impacts on community and environmental resources. The policy change primarily affects companies seeking state-level financial incentives for data centers exceeding 25 megawatts.
The takeaway
The state has moved to treat large-scale computing facilities as public-interest infrastructure rather than strictly private commercial entities. Stakeholders should monitor the upcoming legislative sessions for formal action on the repeal of the 2020 sales tax exemption.
Further reading
For broader context on regional infrastructure development, visit our Data Centers section.
Live Poll
Should your state government implement stricter regulatory oversight for new large-scale data center projects?
