The 6th of the AI CORNER articles suggest that the City of Frederick, which is now considering proposals to build data centers within its jurisdictional boundaries, the powers to be in City Hall may want to review the hard work that its county has recently adopted. So, let’s delve into the details of recently passed Ordinance 25-09.
Frederick County’s Critical Digital Infrastructure Overlay Zone (CDI-OZ) is a targeted zoning tool created to carefully manage where large-scale digital infrastructure—such as data centers and related electric substations—may be developed. Rather than allowing these facilities broadly across industrial land, the overlay concentrates them in specific, appropriate locations while limiting potential conflicts with residential, rural, and institutional uses elsewhere in the county.
Purpose and Intent
The CDI-OZ is designed to direct digital infrastructure facilities to industrial areas already suited for intensive technology and utility uses. These locations typically have proximity to high-voltage power transmission, fiber-optic networks, and existing industrial operations—conditions that are essential for data center development.
At the same time, the overlay protects the county’s broader industrial land base. Industrial parcels outside the CDI-OZ remain available for other employment uses such as manufacturing, logistics, and distribution, ensuring that data centers do not crowd out diverse economic activity across Frederick County.
How the Overlay Is Created
Only the County Council has authority to establish a CDI-OZ. Overlay boundaries must be adopted by ordinance and shown on the official zoning map, making the process both transparent and legislatively defined.
The overlay may only be applied to land designated in the county’s Comprehensive Plan for Limited Industrial (LI) or General Industrial (GI) use. In limited cases, parcels within the overlay may include areas designated as Natural Resource (NR). Those NR areas are excluded from density calculations, and no digital infrastructure uses are permitted on them.
When drawing overlay boundaries, the County Council must evaluate proximity to nearby neighborhoods, schools, colleges, daycare centers, and healthcare facilities, ensuring that site selection accounts for surrounding land uses and community context.
Geographic Limits
A defining feature of the CDI-OZ is its scale. By law, the overlay may cover no more than 1% of Frederick County’s total land area. This strict cap ensures that digital infrastructure is concentrated in a small, clearly defined portion of the county rather than spread across multiple industrial zones.
Permitted Uses and Review
All uses allowed in the underlying zoning district remain permitted within the CDI-OZ, subject to standard site plan approval. In addition, Critical Digital Infrastructure Facilities and related electric substations are allowed as principal uses—but only on LI- or GI-zoned land and only with full site development plan review and compliance with additional county regulations.
Any zoning map amendments within the overlay must meet standard approval criteria. If land lies within a Rural Legacy Area, state approval of revised boundaries is required before any amendment may proceed.
A Deliberate and Distinctive Framework
Taken together, the CDI-OZ reflects a highly deliberate approach to managing data center growth. It is map-based, size-limited, and proactively defined, with layered review requirements and explicit attention to land-use compatibility.
Rather than reacting to individual proposals, Frederick County has established clear expectations in advance—for developers, residents, and policymakers alike. As demand for digital infrastructure continues to grow nationwide, the CDI-OZ offers a balanced model that supports economic participation while maintaining long-term land-use stewardship.
Become a MacRo InsiderWith 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.