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Montgomery County enacts 18‑month moratorium and new definition for large data centers

Montgomery County Council · July 29, 2026
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Summary

The County Council unanimously adopted a zoning definition for large data centers and an 18‑month moratorium on new permits while officials and state agencies study impacts including water use, energy demand and tax incentives.

The Montgomery County Council voted unanimously July 28 to adopt a new zoning definition for large data centers and to place an 18‑month moratorium on building permits for projects that meet that definition.

Council member Evan Glass, a lead sponsor on the moratorium measure, said the pause is needed to answer questions about environmental and utility impacts. “Nothing will happen until we answer all the questions our community deserves,” he said, noting concerns about water use and utility rates. The council’s definition (approved earlier in the meeting) characterizes a large data center as a building or group of buildings with an aggregate monthly electricity demand of at least 25 megawatts and explicitly includes associated infrastructure such as backup power generation, fuel storage and electro‑mechanical energy storage.

Supporters said the combination of a clear definition and a temporary moratorium gives the county time to coordinate with state studies and the council’s Office of Legislative Oversight. Council member Will Giordano, who co‑sponsored one of the measures, said the moratorium is also an opportunity to examine tax incentives and other public benefits associated with such facilities. “We write the rules. We don’t want to be first; we want to be right,” Giordano said.

The council tied the moratorium language to the zoning text amendment it adopted earlier in the session. Staff told council members the moratorium will apply to applications that have not yet received a building permit and that committee amendments clarify the scope and exclusions (for example, facilities used primarily for manufacturing, quantum computing research, biomedical research, medical care or higher education approved by Maryland Higher Education Commission). The vote followed multi‑committee review; council members said they expect the county and state impact studies to inform future regulatory language.

What happens next: the moratorium takes effect with the council’s action and provides an 18‑month window for staff, state partners and council committees to study and propose a permanent regulatory framework. The council repeatedly emphasized the moratorium does not require existing data centers to close.