Baltimore Halts Some Data Center Projects, Kicks Off Impact Study

BALTIMORE, MD — The Baltimore City Council on Monday approved a year-long moratorium on the construction of certain data centers as officials also conduct a study weighing the facilities' impact on residents and the environment.

With the moratorium, the city is halting the construction of data centers that use 10 megawatts or more of power annually, according to the bill passed by council members.

During that time, officials also plan to conduct a 9-month study to determine the impacts of new data centers on energy infrastructure, ratepayers, the economy, and environmental and public health.

The bill is now headed to Mayor Brandon Scott's desk for his signature.

The moratorium comes a month after the Maryland General Assembly passed the Utility RELIEF Act, legislation state leaders called “the crown jewel” of the 2026 session and hope will put money back into constituents’ pockets.

The legislation is expected to provide about $150 in annual relief to the average Maryland household through temporary cuts to an energy-efficiency surcharge on electric bills, according to Patch news partner Maryland Matters.

Those cuts are slated to take effect in 2027.

Other provisions in the bill are estimated to save consumers tens of millions — if not hundreds of millions — in the long run by curtailing costs that utilities have been passing onto ratepayers, setting new limits on utilities’ requests for rate increases, forcing more data centers to pay a special tariff for their electric system demands and more.

In a statement released after the council's decision, watchdog group Food & Water Watch called it "a historic step in the right direction to prioritize people over profits for Big Tech."

“Dirty, costly data centers are unwelcome in Maryland. While Governor Moore and the General Assembly dragged their feet on protecting Marylanders from industry’s buildout, the Baltimore City Council is taking the necessary steps to protect families,” Food & Water Watch Maryland Organizer Jomar Lloyd said in the statement. “This is an opportunity to determine if — not how — data centers can coexist with the needs of Baltimoreans."

Before the vote, others had urged the council to ban data centers in the city indefinitely, according to a WBAL report.

"It's really not robust enough to protect Baltimore City residents," Anjali Gulati, a city resident who supports the bill, said at a council meeting last week.