Key facts
- Montgomery County has instituted an 18-month moratorium on permits for data centers requiring at least 25 megawatts.
- A zoning text amendment was passed, defining large data centers and prohibiting their use in most areas of the county.
- The moratorium aims to provide time for the council to deliberate on appropriate regulations for data centers.
- The new measures extend a prior six-month pause on data center permits.
- The moratorium does not apply to facilities used for quantum computing, biomedical research, or higher education.
Montgomery County lawmakers have approved an 18-month moratorium on the development of large data centers, joining a growing trend of similar pauses across the U.S. The county council voted unanimously to halt permits for facilities demanding at least 25 megawatts that do not yet have a building permit. This measure, combined with a zoning text amendment that defines and prohibits large data centers in most areas, is intended to allow the council time to deliberate on appropriate regulations and address community concerns regarding water usage, utility costs, and broader community impact.
Councilmember Evan Glass, the lead sponsor of the moratorium bill, emphasized the need for serious dialogue with stakeholders over the next 18 months to answer these questions. The zoning amendment includes exceptions for facilities used primarily for manufacturing, quantum computing research, biomedical research, medical care, cable communications systems, and institutions of higher education.
While Montgomery County has not yet seen significant data center development, it is currently considering its first hyperscale data center proposal from Atmosphere Data Centers for a 300-megawatt campus. The new 18-month moratorium supersedes a previous six-month pause enacted by County Executive Marc Elrich in June, which Atmosphere Data Centers had challenged. Atmosphere's CEO expressed disappointment with the council's decision and stated the company would evaluate its implications for the Dickerson project.
Neighboring counties, Prince George's and Frederick, have also implemented data center development pauses, with Prince George's approving a two-year moratorium and Frederick pausing new development through the end of the year. New York was the first state to enact a moratorium, with a yearlong freeze signed into law in July, and several other states are reportedly considering similar statewide bans.