Maryland Establishes State Review Framework for Large Data-Center Projects
DataNews Editorial Team
Maryland Governor Wes Moore has signed an executive order creating a standardized state review process for data-center projects of 25 MW or more that seek state action. The framework requires assessment of grid, water, community and economic effects, alongside public disclosure of key project information.
- Projects of 25 MW or more seeking state action are subject to Maryland’s standardized review process.
- The review covers grid, water, community and economic impacts and produces a written alignment determination.
- A monthly updated public dashboard is expected to disclose project-level demand, water-use and approval information.
- The governor has sought repeal of a data-center tax exemption dating to 2020, but repeal has not been enacted.
- The framework could add a material planning consideration for large, power-intensive Maryland developments.
Maryland has introduced a unified state-level review framework for large data-center developments that seek permits, incentives or other state action.
Under the executive order signed by Governor Wes Moore, projects of 25 MW or more must undergo a standardized, interagency assessment of their effects on the electric grid, water resources, communities and the state economy. The process will result in a written determination of “Aligned,” “Conditionally Aligned,” or “Not Aligned.”
The order also establishes an interagency working group to review qualifying proposals. A public dashboard, to be updated monthly, is intended to disclose project location, developer, expected electricity demand and water use, requested approvals, and the working group’s determination.
The 25 MW threshold places the process squarely within the range of large-scale facilities associated with high-density and AI-oriented workloads. While the framework may improve visibility into the state’s review process, it also creates an additional diligence requirement for projects seeking state involvement. This could require developers to address power availability, water demand and community impacts earlier in the development cycle.
Moore has separately asked the state legislature to repeal Maryland’s data-center sales and use tax exemption, which has been in place since 2020. The repeal has not been enacted. If pursued, it could further alter the economics of locating large facilities in the state.
More broadly, the action may indicate a shift in parts of the US market from incentive-led competition for data-center investment toward more structured management of grid, water and community impacts. For Maryland projects covered by the order, the practical effect could be greater regulatory predictability, but also more scrutiny around infrastructure readiness and public-sector support.
The order could make permitting and incentive-related engagement more predictable for large projects while adding a formal review and disclosure layer for power-intensive development. For AI-scale facilities, developers may need to demonstrate power and water readiness earlier and account for an additional regulatory step in site selection, project schedules and economics.
- — / September 24, 2026 · EnglishSource →
This article was prepared by the DataNews editorial team based on the sources listed above.