Gov. Wes Moore laid out a data center policy plan Wednesday aimed at protecting Marylanders’ wallets and the environment, even as he steered clear of the statewide pauses enacted by some other state executives.
Moore’s proposal, made by executive order, outlines uniform standards for reviewing data centers, establishes a task force within the governor’s office to help steer the state’s data center decision-making, and creates a dashboard for tracking projects across the state.
Moore also pledged to work with lawmakers to repeal a broad tax exemption for data centers, approved by the General Assembly in 2020. According to a recent report from the watchdog group Good Jobs First, that exemption cost Maryland $22 million in forgone revenues in 2026 alone.
The announcement comes as concerns about data center growth and the artificial intelligence industry they power have become a top political issue across Maryland and the country while federal officials have yet to take action.
“By signing this executive order, we are establishing clear safeguards to ensure Marylanders do not foot the bill, our people benefit, community voices are heard, and our environment is protected — all while centering transparency and accountability throughout the process,” Moore said in a statement on the order.
Moore, a Democrat, made data centers part of his plan to boost Maryland’s economy and reduce the state’s reliance on jobs in the federal government, healthcare and education. Moore has cautioned against giving data center companies “free rein” to write their own rules and has urged local say-so over projects.
Still, many data center critics hope to keep the massive server farms out of Maryland for good, and Moore’s plan stops short of the statewide pause that some advocates have called for.
The announcement comes days after Moore told political news site Punchbowl that if the legislature approves a statewide moratorium or ban, he will “absolutely” sign it.
The General Assembly instituted guardrails for data center developers earlier this year, but since then calls for a pause have grown louder, and lawmakers are expected to weigh various moratorium bills in the upcoming session.
For some local leaders, large data center developments promise jobs and property tax windfalls, but others have already moved to slow new data center expansion.
Counties from the deep-blue Washington, D.C., suburbs to the conservative Eastern Shore have enacted data center moratoriums of varying lengths, while Republican-led Harford County approved the state’s first indefinite ban in June.
Wednesday’s executive order also comes as governors across the country have raced to outline stricter data center policies in recent months.
Some of those governors have enacted sweeping development stoppages: In July, New York Gov. Kathy Hochul signed a one-year pause on hyperscale data centers. And on Tuesday, Texas Gov. Greg Abbott paused reviews of all data center permits.
Others have chosen a softer approach.
Last week, Virginia Gov. Abigail Spanberger issued an executive order aimed at tightening policies around data center development, while California Gov. Gavin Newsom signed a slate of bills cracking down on the industry’s usage of land, water and energy.
Unlike those two states, which each house hundreds of data centers, the industry remains in its infancy in Maryland. Frederick County has the state’s only approved hyperscale project.
On Tuesday, Moore announced a series of proposals to regulate the artificial intelligence industry in the state as existential fears over unbridled AI have compounded data center anxieties.
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