HB 120 Seeks Temporary Halt On Maryland Data Centers

ANNAPOLIS, Md. — Maryland’s General Assembly is considering a bill that would effectively pause new data center construction in the state. House Bill 120, introduced by Delegates Mark Fisher [R-Calvert], Brian Chisholm [R-Anne Arundel], Matt Morgan [R-St. Mary’s], and Kathy Szeliga [R-Baltimore], would prohibit any person or government unit from constructing or approving the construction of a data center in Maryland until related co-location legislation is enacted.

The measure reflects growing concern among lawmakers about how data centers, with their enormous energy demands, fit into Maryland’s energy infrastructure and policy goals. Data centers, which house servers and networking equipment for cloud computing, artificial intelligence and digital storage, are among the most energy-intensive commercial operations. Their power needs can reach into the hundreds of megawatts, equivalent to the output of large power plants, and experts and state officials have warned that such demand could stretch the existing grid and drive up costs for other customers.

The bill attempts to ensure that new data centers can be co-located with new or existing power generation sources, such as natural gas plants, nuclear facilities or small modular reactors, so that they have reliable, direct access to the energy they require without overburdening the regional grid. The bill would remain in effect only until the General Assembly passes legislation addressing those co-location standards.

The pause could give lawmakers time to craft thoughtful energy-policy frameworks that balance economic development with grid reliability and environmental goals. At the same time, some lawmakers have raised concerns that overly restrictive policies could deter future investment in Maryland. With the bill’s introduction, some of Maryland’s lawmakers have signaled uncertainty over how best to integrate data centers into local planning and energy markets without imposing undue costs on residents and businesses.

HB 120 is scheduled for a committee hearing in early February, where delegates will hear testimony from stakeholders including energy experts, industry representatives and community advocates. How the bill fares could shape Maryland’s approach to managing rapid growth in digital infrastructure while addressing energy supply challenges and environmental goals.