Local Governments and US Lawmaker Push Data Center Controls

Local governments in multiple states are restricting data center development amid concerns over environmental impact and infrastructure. In Maryland, the Montgomery County Council unanimously approved an 18-month moratorium on these projects, extending a previous six-month pause enacted by County Executive Marc Elrich. The council also amended zoning text to formally define data centers, aiming to study noise, tax rates, and water usage from the Potomac River before a state impact report arrives September 1. Atmosphere, a developer planning a site in Dickerson, stated it cannot proceed with its project due to the decision.

Similar tensions are appearing in Tennessee's Midstate region. Gallatin City Commissioners approved a 60-day pause on new applications, with a broader moratorium under review by the planning commission. Conversely, Lawrence County commissioners tabled a yearlong moratorium, citing a lack of zoning rules to enforce it.

At the federal level, U.S. Representative Rob Bresnahan is supporting a bill that would empower local governments to permit or reject data centers without facing federal lawsuits. The proposed legislation would require developers to fund infrastructure costs and prioritize local labor. This move occurs during Bresnahan's campaign for the 8th District, where opponent Paige Cognetti has criticized his investments in a data center component supplier and compared these facilities to extractive industries.