Maryland Gov. Wes Moore signed Executive Order 01.01.2026.16, "Responsible Data Center Development in Maryland," on Sept. 23, 2026, effective immediately. It creates a statewide framework for how state agencies deal with large data center projects. Under the order, the state's discretionary engagement with a project, including permits and approvals, incentives, tax credits and exemptions, state land, letters of support, and advocacy before PJM Interconnection, the Federal Energy Regulatory Commission or a utility, is to be informed by the project's alignment with that framework.
The order does not ban or pause data centers. It sets the terms on which the state takes part in them, and it arrives after most counties have acted on their own. Its preamble states that "A majority of Maryland's counties have adopted temporary moratoria on data center development and have asked the State for guidance." The preamble also cites the Next Generation Energy Act of 2025 and the Utility RELIEF Act of 2026, which it describes as among the strongest large-load protections in the country.
Which projects are covered
The order defines a data center as a facility or campus with projected or actual peak electric demand of 25 megawatts or more, including an expansion of an existing facility that adds 25 MW or more of peak demand, or a facility meeting the definition of "Large Load Customer" in Section 7-232 of the Public Utilities Article of the Maryland Code. Excluded are facilities owned or operated by, or principally dedicated to the mission of, an accredited higher education institution or a health care institution, and facilities operated by or principally serving a state agency or the U.S. Department of Defense. The Task Force chair confirms each exclusion project by project.
The order applies prospectively. It informs only state engagement that a developer applies for or requests in writing after Sept. 23. Permits, approvals and incentive certifications issued on or before that date are not affected.
How the review works
The order creates the Maryland Data Center Accountability Task Force, administered and staffed by the Governor's Office. Its members are a chair designated by the governor plus the heads, or their designees, of the Maryland Energy Administration and the departments of Commerce, Labor, Environment, Natural Resources, Agriculture and Planning.
Review begins when a developer applies for or requests any state engagement, when a member agency, the Public Service Commission or a host jurisdiction refers a project, or when a developer asks for a determination on its own. Within 60 days of intake, the Task Force must complete a preliminary baseline assessment, notify the host jurisdiction and list the project on the dashboard. It then invites the developer to submit a signed Statement of Commitments. After that, it issues a written determination of "Aligned," "Conditionally Aligned" or "Not Aligned." A developer may request reconsideration within 30 days of a determination, and the Task Force must act within 30 days.
The Task Force weighs five principles: ratepayer and grid protection, economic benefit, community voice, environmental protection, and transparency. The criteria include whether a developer has an energy plan covering the project's full incremental energy needs without imposing costs on other ratepayers, and whether it bears the full cost of the infrastructure the project requires. On community voice, the Task Force considers whether the developer provides plain-language project information, keeps a point of contact for the host community and has negotiated a community benefits agreement covering matters such as noise, traffic, air quality and emergency services. Environmental criteria include water availability and whether the developer has analyzed cooling options to minimize consumption.
For a project rated "Not Aligned," or one with no determination, agencies are to withhold letters of support and advocacy and defer substantive review until the developer documents all required local land use approvals. The Department of Commerce is not to recommend or approve any discretionary state incentive for such a project.
Confidentiality agreements and public reporting
The order prohibits nondisclosure agreements outright: "No Executive Department agency shall enter into, renew, or extend an NDA with a data center developer, operator, or site-selection agent concerning a proposed or existing data center project." NDAs signed before the order took effect will be honored but not renewed or extended.
The order also creates a public Maryland Data Center Dashboard, to be updated no less than monthly. Determinations and Statements of Commitments are to be published there.
The sales and use tax exemption
The order directs the Department of Commerce to build the order's requirements into its application and certification procedures for the sales and use tax exemption for qualified data center personal property, to the extent the law permits. GovTech reported that the exemption was enacted in 2020 and that Moore said he will work with the General Assembly to repeal it in the upcoming legislative session.
Moore cited "federal inaction" and said the rollback of regulations is "raising electricity bills and polluting our air and water," according to GovTech.
Where the counties stand
Local action has mostly taken the form of moratoria and zoning limits. WMAR-2 News compiled the status county by county:
- Baltimore County: The County Council unanimously extended its pause on new data center development on Sept. 22, the day before the order was signed. The pause now runs through Dec. 31, 2027.
- Baltimore City: A one-year moratorium took effect in July for facilities that can use 10 MW or more, a lower threshold than the state order's 25 MW definition.
- Carroll County: The Board of Commissioners approved a one-year moratorium on new data center applications on Feb. 19, 2026.
- Frederick County: New data center applications are paused until July 1, 2027. Development is limited to an overlay zone of about 2,600 acres.
- Harford County: The council unanimously approved a ban, and County Executive Bob Cassilly signed it on June 10. WMAR reported that Harford was the first Maryland county to ban data centers.
- Howard County: A temporary moratorium took effect Aug. 4 and runs through Nov. 2, 2027.
- Anne Arundel County: The council has been considering a pause of about 15 months to replace an earlier ban proposal. The amended bill was scheduled to return to the council on Oct. 5.
What Happens Next
The Task Force must also publish Framework Guidance explaining how the criteria will be applied and the form of the Statement of Commitments. The order sets no date for that guidance or for the dashboard's launch. The first annual report to the governor is due by Dec. 1, 2027. Ending the sales and use tax exemption is up to the General Assembly in its upcoming session.
