Montgomery County Council Approves 18-Month Data Center Moratorium and Imposes Development Restrictions

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Montgomery County residents will see an 18-month pause on new data center development, following the Montgomery County Council’s approval of two significant measures. These actions aim to provide the necessary time for comprehensive review and establishment of clear guidelines for data center construction and operation within the county, addressing concerns about environmental impact, utility costs, and community quality of life.

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Expedited Bill 19-26 temporarily halts the Department of Permitting Services from issuing new permits for data centers for a period of 18 months. This legislative action comes after considerable public input, with the council ultimately reaching a compromise between various proposed moratorium lengths. The approved 18-month timeframe follows an executive order by County Executive Marc Elrich in June that had initiated a six-month moratorium. The new legislation codifies this pause, providing a more extended period for deliberation and planning.

The approved zoning text amendment, ZTA 26-01, further refines the regulatory landscape for data centers. This amendment introduces precise definitions for data centers and specifically prohibits “hyperscale” data centers within Montgomery County at this time. The legislation also clarifies that the moratorium will apply to all data center applications submitted before and after the bill’s effective date, including those that have been approved but have not yet had a building permit issued.

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These measures are intended to allow the Council to collaborate with state officials and stakeholders to develop a robust framework for future data center development. The goal is to create clear guidelines that will protect the county from potential negative impacts, ensuring that economic growth does not compromise environmental health, resident utility bills, or the overall quality of life in Montgomery County. The council indicated that this period will be used to conduct thorough reviews, engage with the community, and strengthen benefit packages associated with such developments.

Article by Ken Buckler, based upon information from the Montgomery County Council

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