Data-center law in Maryland

Md. Code Ann., Land Use §§4-101, 4-102

Applies to both

Maryland's Land Use Article states it is the policy of the State that planning and zoning controls are implemented by local government, and grants a legislative body power to regulate building height and size, lot coverage, off-street parking, yards and open space, population density, and the location and use of buildings and land.

A data-center project's rezoning, special exception, or site plan approval proceeds under the zoning ordinance a county or municipal corporation adopts under this grant.

Source: Full text of law

Md. Code Ann., Pub. Util. §7-207

Applies to both

A person may not begin construction of a generating station, a qualified generator lead line, or certain approved energy storage devices in Maryland unless the Public Service Commission first issues a certificate of public convenience and necessity, with notice and public hearing requirements running to the Department of Planning, affected local governments, and General Assembly members.

A data-center operator that builds its own onsite generation or a dedicated transmission interconnection above the statute's thresholds proceeds under this certificate process. The codified text carries a contingency notice tying its current form to Chapter 572 of 2025.

Source: Full text of law

Md. Code Ann., Pub. Util. §4-212

Effective 2025-06-01 · Applies to private

Enacted as part of the 2025 Next Generation Energy Act, this section defines a large load customer as a commercial or industrial retail electric customer with an aggregate monthly demand of at least 100 megawatts and a load factor over 80%, the profile a data center typically presents.

Each investor-owned electric company and electric cooperative must file a Commission-approved rate schedule for large load customers by September 1, 2026, designed so residential customers do not bear the financial risk of a large load's interconnection, through mechanisms such as load ramp periods, minimum billing demand, long-term contractual commitments and exit fees, and collateral requirements. A related section, Pub.

Util. §7-506.1, lets the Commission allocate grid costs to a large load customer of at least 100 megawatts that contracts to bypass the electric company's transmission and distribution system entirely.

Source: Full text of law

Md. Code Ann., Envir. §§2-401 et seq.

Applies to both

The Department of the Environment permits construction of a new emissions source, replacement of a major component of an existing permitted source, or a modification that significantly increases emissions, with notice to local government and General Assembly members and, for a source subject to federal Prevention of Significant Deterioration or hazardous-air-pollutant standards, an ambient air quality impact analysis. A data center's backup or onsite generator fleet permits under this section.

Source: Full text of law

Md. Code Ann., Tax-Gen. §11-239

Effective 2020-07-01 · Applies to private

First enacted by SB 397, Chapter 640 of 2020, this section exempts qualified data center personal property, including servers, HVAC and mechanical systems, and onsite power-generation and distribution equipment, from Maryland's sales and use tax. To qualify, a data center in a Tier I county or opportunity zone must invest at least $2,000,000 and create at least five qualified positions within three years of applying; elsewhere in the state the threshold is $5,000,000.

The Department of Commerce certifies eligibility and the Comptroller issues the exemption certificate, renewable annually for up to 10 consecutive years, or up to 20 years for an operator investing at least $250,000,000.

Source: Full text of law