County Announces Pause on New Data Center Development Following Maryland Supreme Court Decision

FREDERICK, Md. – Frederick County Executive Jessica Fitzwater today announced a temporary pause on new data center development in Frederick County, following a ruling yesterday from the Maryland Supreme Court regarding the Frederick County Data Center Referendum Committee.

The Court determined that the County’s zoning decision to restrict data center development to an area north of Adamstown cannot appear on the ballot this fall. 

Earlier today, County Executive Fitzwater signed an executive order to pause the acceptance and processing of new applications for Critical Digital Infrastructure facilities or substations until December 31, after the State issues its Data Center Impact Analysis and Report. 

“While the Supreme Court has ruled that the zoning ordinance cannot go on the ballot, the level of engagement and the number of residents who signed the referendum tells me that many in our community, like communities across the country, have real concerns about how data centers will affect us,” said County Executive Fitzwater. “This pause will give us time to respond to those concerns and consider the findings of the State’s report.”

Over the past three and a half years, Frederick County has conducted extensive outreach, including workgroups, hearings, and community meetings, on data center policy. Two additional community information sessions will be scheduled, offering residents an opportunity to get answers directly from County agencies about how Frederick County oversees elements of data center development. Details will be announced shortly.

County Executive Fitzwater also signed a second executive order today aimed at increasing transparency around data center energy usage. While local governments in Maryland cannot regulate public utilities, the order requires data center developers to provide proof of registration with the Public Service Commission’s (PSC) new large load customer registry before advancing through the County development review process. The registry, which was established this year through the Utility RELIEF Act, will require data centers to disclose how their power needs will be served and their projected annual usage.

Local governments cannot mandate specific energy sources or consumption levels, but by requiring PSC registration early in the process, the County is ensuring that state regulators have the information they need to address concerns about energy demand. 

Lastly, County Executive Fitzwater also announced the restart of negotiations on a community benefit agreement related to the Quantum Frederick campus. The project has already generated more than $50 million in recordation tax revenue, supporting agricultural preservation, open space, housing, and transit initiatives. 

To help guide the process, the County has retained DAI, a firm with 50 years of experience helping governments maximize the public value and community benefits of major capital investments and infrastructure projects such as data centers, energy, and industrial development. Progress is expected to be announced this fall.

Frederick County remains dedicated to regulating data center development in a way that protects the environment and enhances residents’ quality of life, while ensuring the industry delivers meaningful benefits.

Following the Supreme Court’s recent decision, the County is committed to rebuilding trust, continuing to provide transparent information about data centers, and negotiating a community benefit agreement that maximizes opportunities for the community. 

To learn more, visit the updated web page at www.FrederickCountyMD.gov/DataCenters. 

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CONTACT: Hope Morris
Communications Manager
Office of Communications and Public Engagement  
301-600-2590