Real Estate
Home›Real Estate›Industry›Maryland and Virginia tighten rules for large data cen…
Maryland and Virginia tighten rules for large data centers
Maryland’s order sets a review trigger for projects at 25 megawatts or more and adds a task force to assess impacts on ratepayers and the grid.
Maryland and Virginia are tightening regulation for large data center projects as state and local scrutiny increases across the Mid-Atlantic, according to Commercial Observer. Maryland Gov. Wes Moore announced an executive order that creates a review process for data centers of 25 megawatts or more when developers seek state permits, incentives, or letters of support.
The Maryland order also establishes a task force to evaluate projects based on their effects on ratepayers and the grid. Moore said local officials will still decide whether projects can move forward, while projects that do not align with the new framework could face deferred state review and would not be eligible for state advocacy or certain incentives.
Moore said his administration will seek to repeal Maryland’s sales and use tax exemption enacted in 2020. Commercial Observer also notes that Virginia Gov. Abigail Spanberger signed a “Data Center Accountability Framework,” directing state agencies to increase transparency, environmental oversight, and scrutiny, and her administration is proposing legislation for the 2027 session to eliminate by-right approval for data centers using more than 25 megawatts.
In Virginia, the Prince William County Board of County Supervisors unanimously approved zoning changes that largely end by-right development. Commercial Observer reported that the county plans to shrink its Data Center Opportunity Zone Overlay District from 9,698 acres to roughly 3,641 acres, meaning new proposals outside the overlay must use a special-use permit process.