This is the 7^th article in MacRo’s AI series.  A proposed Frederick County data center moratorium has broad conceptual support within the delegation, but Senators and Delegates raised serious concerns about its legal authority, drafting language, unintended consequences, and potential impacts on local land-use control and economic development.

At a recent meeting of the Frederick County legislative delegation, Delegate Jesse Pippy presented draft legislation (LR2960) proposing a moratorium on new data center approvals in Frederick County. The proposal would temporarily prohibit the construction or approval of new data centers until a statewide study—recently authorized by the General Assembly—is completed.

The draft makes clear that existing data center projects would not be affected. Instead, the intent is to pause future approvals while the state completes its evaluation of data centers’ impacts on energy, infrastructure, and local communities.

During the delegation discussion, most members appeared generally supportive of the underlying concept: slowing or pausing new development until more comprehensive information becomes available. However, significant concerns were raised about how the bill is currently drafted and whether it is legally structured in a defensible manner.

Concerns About Legal Authority and Local Control

Senator Karen Lewis Young expressed serious reservations about the language of the bill. She noted that land use planning, zoning authority, and the issuance of permits are matters clearly reserved to local governments under Maryland law. She cautioned that prohibiting the County from issuing permits could invite legal challenges and exceed the delegation’s authority.

She also pointed out that the bill would not take effect until October 2026, which could unintentionally accelerate development activity rather than pause it. In her view, the approach may not be the appropriate legal mechanism to accomplish the intended goal.

Delegate Ken Kerr echoed concerns about land use authority and raised fiscal considerations. With ongoing cost shifts from the state to counties, he noted that local governments have limited tools to raise revenue. Prohibiting data centers—even temporarily—could eliminate one of the few large-scale revenue opportunities available to counties.

Kerr also questioned whether the bill’s language would unintentionally block innovative projects that include on-site generation or off-peak grid usage strategies designed to reduce strain on the electric system.

Concerns About Unintended Consequences

Delegate Fair raised another critical issue: the definition of “data center” in the draft bill. As written, he warned, the language could inadvertently restrict expansions by major life sciences employers such as Thermo Fisher Scientific (Patheon Pharma Services on New Design Road in Frederick County), which rely on on-campus data processing facilities. Hospitals and biotech companies could similarly be affected if the bill broadly prohibits the construction of facilities that meet the statutory definition of a data center.

Senator Lewis Young reiterated that alternative mechanisms—such as energy performance standards or environmental requirements—might better achieve the policy goal without risking overbreadth or legal vulnerability.

Support for a Pause

At the same time, several delegation members—including Senator Folden, Delegate Miller, and Delegate Rose—expressed support for the concept of pausing approvals until the statewide study is complete. Some suggested the bill should even take effect immediately as emergency legislation rather than waiting until October 2026.

Their argument centered on caution: given new information about grid impacts and infrastructure pressures, they believe it is prudent to pause and ensure that Frederick County does not move ahead of the state’s broader review.

Where Things Stand

The discussion made clear that while there is meaningful support within the Frederick County delegation for the idea of a temporary pause, there are equally significant concerns about the legal drafting, scope, and unintended consequences of LR2960 as currently written.

As deliberations continue, the focus may shift from whether to pause development to how to structure any pause in a way that is legally sound, narrowly tailored, and consistent with Maryland’s land use framework.

With more than 50 years advising regional landowners, investors, and institutions, Rocky Mackintosh, Broker of MacRo, LTD has firsthand experience supporting nationally recognized hyperscalers with site search and selection services throughout the Mid-Atlantic. Our team has worked at the interface of land planning, infrastructure analysis, and high-value redevelopment—experience that uniquely informs our understanding of projects like Quantum Frederick.