Montgomery County Debates Data Centers

Two distinct legislative paths are at the heart of the debate. One proposal, a zoning text amendment (ZTA 26-01) sponsored by Council President Natali Fani-González and others, would immediately restrict new data centers to industrial zones and impose new standards for noise and environmental impact. The competing bill, from Councilmember Evan Glass, would establish a 15-member task force to study the industry's potential impacts for one year before any new regulations are written. The legislative push is fueled by projects already in the pipeline. A company named Terra Energy has received provisional approval to construct a massive data center and battery storage complex on a 758-acre site at the decommissioned Dickerson Power Plant. Because the county currently lacks specific zoning for data centers, the project was reviewed under existing rules for "cable communications systems." The economic stakes are significant, with advocates pointing to major potential revenue. A Maryland Tech Council report estimates a typical 800,000-square-foot data center could support 5,000 construction jobs and generate $18 million in tax revenue during its build-out. Once operational, it could sustain nearly 500 permanent jobs and contribute $14 million in annual state tax revenue. Across the Potomac, officials are watching the evolution of the nation's largest data center market in Loudoun County, Virginia. After years of rapid expansion, the Loudoun County Board of Supervisors recently eliminated "by-right" development for data centers. All new projects there will now require a special exception and a more rigorous public review process, a shift away from the policies that fueled its initial growth. This move in Virginia provides critical context for Montgomery County's debate. The immense tax revenue from data centers has allowed Loudoun to consistently lower its property tax rate to one of the lowest in the region, a key factor for economic competitiveness. For every dollar in services Loudoun provides to data centers, it reportedly receives $26 in tax revenue. Following a public hearing on February 24 where residents raised concerns about energy consumption and environmental strain, the Montgomery County Council is now weighing amendments to both proposals. Council President Fani-González has stated that work sessions will be scheduled for the summer to further deliberate on the county's strategy.