The rise of artificial intelligence and cloud computing is driving a sharp increase in data center construction across Maryland and the United States. Maryland currently hosts a few dozen data centers but lacks the massive hyperscale facilities that have sparked strong opposition elsewhere over their size, noise and environmental effects.
Jean Hardy, assistant professor of media and information at Michigan State University, identified three core concerns with data centers: water, power and land use. Hardy also noted discussions about potential community upsides. “That would include what are community benefits going to be? What are economic benefits going to be?” Hardy outlined. “A lot of communities were not proactively thinking, ‘What are data centers? Could they come to our communities?’ They didn’t have anything in place to understand how data centers would fit into their communities from a planning and zoning perspective.”
A report by the climate news provider Heatmap documented a sharp rise in canceled data center projects over the last year, fueled mainly by community opposition. Three Maryland counties have introduced or passed measures to slow developments, including Baltimore, Prince George’s and Montgomery counties.
Hardy emphasized that data centers form a vital part of the digital age. Some communities have negotiated agreements to direct funds toward local development, schools and public services. Yet job creation remains limited and positions often do not go to local residents. “Data centers do provide a lot of construction jobs, so that can be a benefit,” Hardy noted. “But data center construction jobs are temporary, right? And we know that for these large-scale development projects, the types of construction companies that do these things usually aren’t local.”
Southern Maryland counties of St. Mary’s, Calvert and Charles now face these same pressures as developers eye the region. Calvert County saw the most immediate activity in early 2026. Job postings for Amazon Web Services roles in data center construction in Lusby triggered resident concerns and a swift response from the Board of County Commissioners. At their March 3 meeting, commissioners added the topic to the agenda after social media discussions and invited an AWS representative to speak. They voted unanimously to begin the process of exploring a possible 24-month moratorium on data center approvals and permits. The step aims to allow time for a comprehensive public environmental impact study covering power, water and land issues.
AWS representative Becky Ford addressed the board and confirmed the existence of a nondisclosure agreement with the county. “The NDA exists with AWS and permits confidential early-stage exploration, a standard practice for businesses considering investments.” Ford added that no plans or permit applications have been filed, no agreements are in place, and no tax incentives or building relief have been negotiated. “The job postings reflect standard early due diligence by Amazon and do not indicate a firm commitment to proceed.” Commissioners scheduled open public sessions for the coming weeks so AWS could share general information on data centers, potential benefits and development processes.
Calvert County already updated its zoning effective March 1, 2025, to limit data center locations and add requirements. Proposed amendments in early 2026 would mandate closed-loop cooling systems, prohibit groundwater use for cooling, require developers to fund infrastructure upgrades and enforce Tier 4 generator standards. The county sits near Calvert Cliffs, a major energy source that has drawn interest for co-located projects. Public pressure centered on secrecy around the nondisclosure agreement, potential impacts on ratepayers from high energy demands and broader environmental effects.
In Charles County, commissioners took proactive steps earlier. On October 7, 2025, they received a briefing on a proposed zoning text amendment labeled ZTA 25-187 and voted to forward the draft to the Planning Commission for review. The amendment would permit data centers, subject to strict conditions, in Business Park, General Industrial, Heavy Industrial, Low-Density Residential and Planned Unit Development Industrial zones. Requirements include at least 30 percent open space on sites, 200-foot setbacks from property lines, 400-foot setbacks from residential buildings, submission of noise and vibration studies, and prioritization of non-potable water use. In Low-Density Residential zones, sites would need a minimum of 50 acres and adjacency to a regulated public utility of 230 kilovolts or higher. The changes align with the county’s 2016 Comprehensive Plan and aim to support sustainable industrial growth while addressing developer interest and concerns over water and energy use. A public hearing was expected in November 2025 following Planning Commission input.
Across Maryland, the power grid is feeling the strain. The state ranks 13th nationally for residential electricity prices as of October 2025, according to the U.S. Energy Information Administration. Prices rose about 18 percent between October 2024 and October 2025. A 2024 U.S. Department of Energy report projects data centers will consume 7 percent to 12 percent of national electricity by 2028, up from 4.4 percent in 2023. The regional grid operator PJM Interconnection forecasts that data centers will triple their share of electricity demand in the Maryland area between 2024 and 2029. Peak load across the PJM region is expected to grow by 32 gigawatts from 2024 to 2030, equivalent to powering at least 24 million homes.
Steve Black, president of Frederick County’s Sugarloaf Alliance and part of the Maryland Data Centers Analysis Group, described the facilities as serving private companies. “These facilities, these data centers exist to make money for a private company, and we are all paying for their capital need.” Capacity costs in PJM auctions jumped dramatically, driven almost entirely by data center loads. Maryland has retired 6,000 megawatts of power production since 2018 while adding only 1,600 megawatts, relying on imports for 40 percent of its electricity. These trends affect Southern Maryland residents through utilities such as SMECO, with higher bills possible even without local projects.
State and local officials in Maryland have shown growing interest in temporary bans or moratoriums on data centers, citing rising electricity prices and environmental effects. Legislation for such pauses has been introduced in Maryland along with 10 other states, though none have passed yet. Southern Maryland coverage underscores shared regional worries, with Calvert and Charles taking concrete zoning and review steps while St. Mary’s County monitors developments closely through its comprehensive planning process. Communities across the three counties are now engaging in the proactive planning Hardy recommended, balancing digital infrastructure needs against local impacts on power, water, land and residents. Public sessions, environmental studies and stricter regulations reflect efforts to secure potential economic benefits such as construction jobs and tax revenue without unintended burdens.