Maryland lawmakers cleared the way for a report on the impact of data centers, overriding Gov. Wes Moore’s veto.
During the special session convened on Tuesday, the Maryland General Assembly voted for the state to conduct an environmental and economic analysis of data center expansion to help guide zoning and energy decisions.
Members of the Maryland Department of the Environment, the Maryland Energy Administration and the University of Maryland School of Business will create the report, to be submitted to the governor and General Assembly by September 2026.
Explaining his vote to overturn, Sen. Charles Sydnor, a Baltimore County Democrat, said a recent data center proposal in his district raised concerns among constituents.
“We cannot promise the families of Maryland that they will see the revenues or community benefits of these projects,” Sydnor said.
While the Senate voted unanimously on the veto and most House members supported the override, there were a few dissenters. Del. Matthew Morgan, a St. Mary’s County Republican who voted no, said that the study would only push back efforts to regulate data centers in the upcoming legislative session.
“We don’t need to study this problem,” Morgan said during the vote. “This bill doesn’t stop any data centers from being built. It just delays any decisions about data centers until next year, when the report is due to the General Assembly.”
Maryland weighs budget woes with constituent concerns
Moore rejected the Data Center Impact Analysis and Report and other studies in May, citing budget constraints and agency workload.
“Many of these reports are never read and simply collect dust on shelves,” Moore wrote in a letter to Senate and House leadership.
Maryland faces a projected $1.4 billion budget deficit heading into the 2026 legislative session, which lawmakers attribute in part to the national economic climate. The bill, which commissions a $502,000 study, represents a small fraction of the state’s roughly $61 billion budget from last year, advocates for the analysis said.
Industry leaders across the state say that attracting data center development could help address Maryland’s budget challenges, pointing to construction jobs and potential tax revenue. Still, environmental advocates are concerned that unrestrained development could impact the state’s climate goals and affect local communities’ electricity prices.
“This is just the first step in creating a future for quantum development that supports communities, public health, and the environment,” Angie McCarthy, Maryland Conservation advocate at Nature Forward said, “just as much as a thriving economy.”
