Montgomery County Council poised to pass 18-month data center moratorium

Montgomery County is set to extend its moratorium on new data center permits.

Eight County Council members have indicated their support for an 18-month pause, and the council’s economic development committee voted Wednesday to advance the proposal for a vote of the full 11-member council next Tuesday.

“There’s a lot that needs to be worked on, with the community, and this will allow the time and space to do that,” at-large council member Will Jawando, the Democratic nominee for county executive, said during the committee meeting.

“This is a defining moment for our country and our county,” he added.

Also Wednesday, the council’s committee on planning, housing and parks advanced a proposal to define data centers in the county’s zoning code for the first time. If the council passes the legislation, companies won’t be permitted to build data centers until planners and council members determine where in the county to allow them.

The council had been considering competing moratorium proposals — Jawando wanted a two-year pause, while his at-large colleague Evan Glass had pushed for six months. Eighteen months was seen as a compromise.

If at least six members vote for it and County Executive Marc Elrich signs off, the new moratorium will replace a six-month ban that Elrich enacted in June.

The pending policy changes appear likely to delay plans for five data centers on the site of a decommissioned coal-fired power plant along the Potomac River in Dickerson.

Last winter, an attorney for California-based Atmosphere Data Centers, the company applying to build the facilities, said a moratorium would “quite possibly derail” the project.

After Elrich enacted his six-month pause, Atmosphere challenged the decision by filing an appeal with the county’s Office of Zoning and Administrative Hearings.

Atmosphere CEO Chuck McBride said Wednesday the company won’t comment ahead of next Tuesday’s vote.

“We look forward to reviewing the Council’s final action and remain committed to working collaboratively with County leaders and the community,” he said in a statement.

Environmental advocates on Wednesday applauded the council committees’ decisions and called for a seat at the table as discussions continue.

“We look forward to having the county gather input from residents and experts to inform the standards these facilities will have to meet,” said Kevin Walton, who is part of a coalition of 20 environmental organizations working in Montgomery County.

The extended moratorium would follow pauses in other counties across the state, including in Prince George’s, where county lawmakers voted in early July to adopt a two-year ban.

Last week, New York became the first state to adopt a statewide data center moratorium. Gov. Kathy Hochul enacted a one-year pause to allow time for lawmakers to develop regulations. The governor also plans to advocate for the repeal of New York’s sales tax exemptions for large data centers.

Lawmakers across the country have cited concerns over water, environmental and noise pollution from data centers.

Council members said Wednesday that Montgomery County’s moratorium will allow the committees time to determine appropriate guardrails for large data centers. Local lawmakers are also awaiting guidance from the state legislature, including results from a study on how data centers affect nearby communities.

“We’re doing this because we truly love this county,” Council President Natali Fani-González said. “We’re going to take our time to make sure that the decision for a large data center is done the right way.”