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Moratorium bill ties data‑center approvals to co‑located generation; industry and environmental groups clash

House Environment and Transportation Committee · February 3, 2026

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Summary

HB 120 would impose an emergency moratorium on new data centers lacking required permits and make any lifting contingent on co‑locating generation sized to meet or exceed data‑center demand; business groups warned of lost investment while environmental and community advocates warned the contingency could spur new fossil generation and public‑health harms.

Delegate Mark Fisher presented HB 120 as an emergency moratorium on approvals and construction of data centers that lack required permits and as contingent legislation: the moratorium would be abrogated only if the General Assembly enacts law requiring new data centers be co‑located with generation (gas, nuclear or small modular reactors) sufficient to meet or exceed the data center’s power needs.

Sponsor testimony emphasized the effect of large hyperscale data centers on electrical demand, transmission needs and ratepayer bills; the sponsor said co‑location of generation or adequate on‑site batteries could avoid transmission expansions such as the Maryland Piedmont Reliability Project.

The bill drew sharply divided testimony. Supporters, including faith‑based and community groups, said a moratorium is needed while the state studies impacts on reliability and the clean energy transition. Opponents including the Maryland Tech Council, industry representatives and unions said the measure is overly restrictive, would chill investment, and could preclude the economic benefits of data center development. Environmental groups warned the co‑location contingency could incentivize new fossil fuel generation, exacerbate air and water impacts, and that alternatives such as utility‑scale renewables, battery storage and demand response should be prioritized.

Committee members asked practical questions about whether co‑location could include restarting existing generation facilities and about regional economic impacts if development shifts across state lines. No vote was taken at the hearing.