Maryland Emerges as Key Battleground in U.S. Data Center Expansion
December 15, 2025
The rapid expansion of data center development, driven by soaring demand for cloud computing, streaming services, and artificial intelligence infrastructure, is shifting north from its traditional epicenter in Northern Virginia. Maryland has now become a primary frontier in this national growth, presenting both significant economic opportunities and complex community challenges.
Several major projects are currently under discussion or development across the state. These include a potential site in upper Montgomery County near the Potomac River and another at the Baltimore Peninsula development led by Under Armour CEO Kevin Plank. The state's appeal is bolstered by its proximity to the dense fiber-optic networks that powered Northern Virginia's market dominance. For Maryland, facing a projected $1.4 billion budget deficit, the industry represents a crucial source of revenue and job creation, with one analysis suggesting a single county project could generate 4,800 jobs.
This potential, however, is met with substantial local opposition. In Prince George's County, a proposed development on the former Landover Mall site, owned by the Lerner family, sparked a rally and a petition garnering over 20,000 signatures. Concerns over environmental impact, energy consumption, noise, and strain on local resources have led the county to pause new data center approvals to study their effects. A recent county task force report recommended ending by-right development and implementing stricter regulations.
The tension is palpable in Frederick County, described by Angie McCarthy, state conservation advocate at the environmental group Nature Forward, as "ground zero." A public hearing in October regarding expansion near the under-construction Quantum Frederick campus lasted seven and a half hours, filled with both protesters and supporters. McCarthy emphasizes the scale of the issue, stating, "Data centers are the largest development issue of our generation." Her organization helped form the Maryland Data Center Reform Coalition, which advocates for greater oversight rather than opposing development outright.
Industry representatives argue that balanced regulation is key. Kelly Schulz, CEO of the Maryland Tech Council, which launched the Data Center Alliance of Maryland, says developers are listening to community concerns. "They do not want the community to look like a Northern Virginia community as much as we don't want them to," she stated. Schulz warns that excessive red tape could cause the state to miss out on billions in investment. "There are billions of dollars that are going to be invested somewhere," she said. "It's the timing that really puts this industry at risk."
State leadership has taken industry-friendly steps, including Governor Wes Moore vetoing a bill mandating an environmental impact study and signing another to streamline the use of backup generators. As the debate continues, Maryland stands at a crossroads, weighing the promise of economic revitalization against the demands for sustainable and community-conscious growth.
Source: axios
